Three Essential Strategies to Compete with the Collaborative Economy

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THREE ESSENTIAL STRATEGIES TO COMPETE WITH THE COLLABORATIVE ECONOMY 51% SHARERS 2015 49% NON-SHARERS 2015 61% NONSHARERS 2014 Everyone is sharing—getting the goods and services they need peer-to-peer, instead of buying from established brands. They share because it’s economical and, as collaborative services become commonplace, very convenient. 39% SHARERS 2014 105 million SHARERS IN USA How do traditional companies stay competitive? 1 DRIVE BUSINESS WITH SAVINGS More people will choose to buy if it means they can save 25% ACCOMMODATIONS GIFT 71% 59% 54% HOME FURNISHINGS 60% 47% 48% 18-34 35-54 CAR RENTAL 62% 51% 53% 50% 46% 36% 55+ 2 DRIVE BUSINESS WITH FEATURES AND SERVICES People are more likely to switch to sharing if it’s more convenient ACCOMMODATIONS GIFT HOME FURNISHINGS CAR RENTAL 40% 37% 18% 26% 29% 27% SWITCH FROM BUYING TO SHARING 3 34% 20% SWITCH FROM SHARING TO BUYING DRIVE BUSINESS WITH TRUST People will switch to sharing if it means dealing with a known brand ACCOMMODATIONS GIFT HOME FURNISHINGS 29% 37% 25% 42% 24% 14% 29% 25% SWITCH FROM SHARING TO BUYING CAR RENTAL SWITCH FROM BUYING TO SHARING COMPANIES CAN ALSO PLAY ON THE COLLABORATIVE ECONOMY’S TERMS BY LAUNCHING PEER-TO-PEER MARKETPLACES: FORD The car giant offers a creative financing program to encourage new buyers to rent their new Ford car to peers on Getaround, a P2P online marketplace. This significantly reduces the cost of ownership. HOME DEPOT The hardware chain offers a rental service for tools and heavy equipment, including trucks, so customers don’t need to buy expensive, infrequently used goods. This enables people to get access to tools while reducing cost of ownership. WALMART The retail behemoth created an aftermarket for videogames, called Trade In, which enables customers to sell back cell phones and other electronics, enabling a used goods marketplace in their own stores and online. Collaborative companies are now some of the biggest in the world, with high brand recognition. Here’s how many people recognize them: 30% 45% 57% 84% To learn more about how companies can prevent customers from switching to sharing brands, download The New Rules of the Sharing Economy, an original, data-packed report by Jeremiah Owyang, the founder of Crowd Companies, and Alexandra Samuel, an independent technology researcher. https:/ /www.visioncritical.com/resources/new-rules-collaborative-economy visioncritical.com

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