The ownership society is giving way to the sharing economy. Position your company now.
The pride of ownership used to be something that parents taught their children. But it appears that Generation Y consumers aren’t particularly interested in ownership as much as they are in consumption. The idea of enjoying the benefits of something without the responsibilities of ownership has given rise to the “sharing economy” and your company needs to adapt to this new reality.
Over the past decade numerous startups have launched and grown—some to $1 billion plus valuations, based on this concept. There are successful companies like VRBO and AirBNB that allow people to rent their homes or just time on a couch; companies like Bag, Borrow or Steal that rent high-end purses, shoes, sunglasses and watches and now there are companies that even allow you to rent out your car as an impromptu taxi service. This “sharing” industry thrives because there are millions of consumers that are comfortable paying to use something they enjoy but don’t want to own.
Does your business model assume that ownership is a requirement? Have you considered experimenting in the sharing economy? It won’t necessarily cannibalize your existing customers; instead it will open the door to a new market which could lead to higher-margin revenues and faster growth.
A little about Mike Periu
Periu founded Proximo, LLC nearly 15 years ago. The company provides small business education and training services with an emphasis on finance and technology.
Periu teaches empowerment through entrepreneurship and economic opportunity. He regularly appears on television and radio talking about these subjects.
Periu also writes for leading blogs about finance. These include: American Express OpenForum, Yahoo! Finanzas and the Huffington Post.
Periu studied Finance and International Business at Georgetown University. He is a Board member at the Council for Economic Education.
