What Customers Want from Collaborative Economy?
Collaborative economy also called sharing economy covers a good variety of the sectors and rapidly emerging across Europe. A lot of people in Europe have used already or aware of the collaborative economy services that range from car journeys and sharing houses to domestic services.
Collaborative economy gives new opportunities for innovative entrepreneurs and citizens. However, it has created tensions between new service providers and current marketing operators.
As P2P companies establish a firm place in numerous parts of the economy, the traditional businesses recognize that this new transaction form represents a possible competitive threat.
This turns out that majority of people are primed to consider the shift to share if particular conditions are met. Some customers report that they’d consider sharing rather than buying if this enables them to save twenty-five percent on their purchase and among the younger customers in particular, most are swayed by potential savings. Approximately a third will consider sharing to buying if this offers convenience, regardless if it is in the form of ancillary services, delivery or customization.
However, the fact that a lot of customers may be wooed through sharing services must not make the traditional companies give up hope. Factors that turn the buyers into sharers could bring them back as easily. Quarter of the would-be sharers may be drawn back to the conventional purchase transactions by the promise of convenience or renowned brand.
If the established companies like to tap the power of the price, brand and convenience as competitive benefits in the time of collaborative economy, they’ll need to embrace the lessons of sharing the success of the startups. The companies that like to compete on the prices have to launch their own P2P marketplaces to minimize the overall ownership cost of customers. The companies that want to provide customers convenience may offer ancillary products and services they need. Companies that like to leverage the power of current brand to attract sharing customers have to look for ways to offer traditional products through access or ownership.
Partnering with the collaborative economy startups may frequently be the quickest route to give customers the convenience, brand reliability, and savings they seek. For instance, Cosmo Hotel allow their guests to save on the cost of the big night out through making it simple for them to rent the dress from the Rent the Runway rather than buying their own. Whole Foods also make shopping more convenient for its customers through embracing Instacart as a means of giving customers easy and fast deliveries.
Businesses do not have to pick any of those paths. Hotels may stick with the model rent a room, retailers may continue selling rather than renting, and manufacturers may produce products that are take it or leave it rather than the custom goods. There is still a group of customers who like to get their services and products they way they have and who are willing to pay premium and forego convenience instead of rethinking their consumption patterns.
- Globalie Blog Team
( Globalie - The Global Innovation Ecosystem, or Globalie, is an independent, non-partisan, coalition of international leaders focused on social enterprise )