The New Consumer RevolutionorSharing is the new BuyingHIDVEGI, ZoltanMedia Planning Professional

email: zoltan@zoltanhidvegi.comskype: zoltanhidvegi

THE GREAT PACIFIC GARBAGE PATCHLOCATION: PACIFIC OCEANSIZE: 3.5 MILLION TONS

What is Sharing Economy and how did it start?

The sharing economy is a socio-economic system built around the sharing of human and physical resources.

CivilsPoliticsCapital

ENOUGH!Consumers dont want to be told what to buy anymoreTaxes, regulations, distributionsPressure to buy more and more

BankruptcyTechnologyPopulationAssertiveness

People realised that they are spending and buying way more than their real needs

Prices, defined by the Politics and the Capital are much higher than the real value

By using the social media and technology Consumers are building up a new, virtual market place where they redistribute their goods

THIS IS THE SHARING ECONOMY

What is the financial benefit of the Sharing Economy to the People?

2 ways of SHARING: resell and rentTotal value of a product or a service consist of two componentsunused valueused valueIn order to minimise the unused value the consumers are looking for a product or service which provides the lowest WASTAGEthat is SHARABLE

ProductServiceResellRent

The Sharing Economy also created its own financial system in order to replace the traditional monetary system

Which industries are affected?

TransportationHospitalityHome appliances

Entertainment

FoodBeautyPharma

Luxury

Fashion

Services

Ok, but is this phenomenon significant?

Sharing economy

Hungarian economyin 2013 the size of$ 110 Bn(some say it is $ 350 Bn)$ 124.6 BnSource: http://www.gravitytank.com/pdfs/info_graphics/SharingEconomy_web.pdfWikipedia

490 Bn USD

1.7 Bn USDEstimated revenues in 2013100 Bn USD

1.1 Bn USDSource: Business Insider, FiveThirtyEight

How does it transform the business?

Decreasing salesAs people share more their need to buy commodities and services will definitely decrease.Less playerCompetition will be even more tense as companies have to fight much stronger for the less consumersNew business approachSelling wont be the only way of making business. As the companies invested seriously in production and know-how they will find new solutions for creating profit

The company ensures the consumer that it either buys back the product or provides a market place where the consumer can sell the productThe company receives a product or service from the consumer in return for its product or serviceThe company borrows the product to consumer for a certain fee and timeThe classic, traditional way of income for the company. It sells the product or service to the consumerSellingThe company must consider other business models than sellingRentingExchangingRedeeming

PastWhat value/benefit can the product/service provide to me?What value/benefit can the product/service provide to me and to my peer?PresentShift in the Consumer Behaviour

NeedSearchDecisionBuying

AdvocacySharingNeedSearchDecision

AdvocacyUsing

NEED is not necessarily leading to BUYING, hence a deeper understanding of the consumer is essential (buyer vs user)

Communication must provide arguments in the SEARCHING phase to the buyer for the SHARING as well

How does it influence the marketing communication?

Communication Strategy Planning process should be reconsideredSHARING (product, not information) must be built in the planning processBusiness and Marketing goals are not as obvious and simple as they were so far

Individual is not at the core anymore, but understanding the peers decisions is essential

Analysing the CONSUMPTION of the product is not enough, collecting data about SHARING is just as much important

Is there any brand who already deal with Sharing Economy?

Now its Your turn to deal with Sharing Economy!HIDVEGI, ZoltanMedia Planning Professional

email: zoltan@zoltanhidvegi.comskype: zoltanhidvegi