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HOSPITALITY

Economy 2.0: Sharing

By and For Consumers

WHETHER IT INVOLVES HOUSING, RIDE

SHARING OR MUSIC STREAMING, A NEW WAVE

OF ACCESS-DRIVEN, PEER-TO-PEER BUSINESS

IS DISRUPTING ESTABLISHED INDUSTRIES

opportunities for the sector if, rather

thanfightingthe threat,mediaproviders

exploit opportunities by exploring new

distribution models to promote higher

audience engagement. As the success

of music-streaming service Spotify

demonstrates, content creators are

adopting metrics beyond linear sales

and finding ways of monetization via

sharing platforms, such as advertising

revenue.

Automakers

Due to the striking advancement of

companies like Uber and Lyft,

automakers have been placed under

the spotlight. Bike sharing, car-sharing

and ride-sharing reflect a huge cultural

shift and, as a result, traditional

automotive companies are rethinking

their positioning.

General Motors, one of America’s

Big Three automakers, announced

a $500-million investment in Lyft in

January 2016, and Ford CEO Mark

Fields has been talking about what he

calls “smart mobility” for some time,

or the combination of innovation and

data to enhance customers’ mobility,

The sharing economy is becoming very

large, very fast, and businesses need

to take notice. The issues to consider

include how sharing principles will

shape the wider market, and how

sharing economy concepts can be

applied to existing business models.

Retail

Retailers have been adept ‘disruptees’

when it comes to new concepts, with

the onset of e-commerce seeing the

creation of an omnichannel experience

for shoppers. However, innovative

companies have created sharing

alternatives. For example, FarFetch,

which partners with local and luxury

boutiques globally to showcase and

sell their inventory online, offers small

retailers the opportunity to retain their

brick-and-mortar stores, while still

granting them an online presence.

As retailers adapt and react, they

must weave sharing opportunities

into the customer experience and

facilitate peer-to-peer marketplaces,

allowing for rental or resale. This will

allow more consumers to experience

products ‘first hand’ while promoting

sustainability - something that appeals

to an increasingly environmentally

aware cohort of shoppers. Retailers’

physical footprints will also be under

the microscope, as the sharing ethos

encourages them to lend space to

other vendors in partnership efforts,

and leads them to further embrace the

pop-up movement.

Hospitality and Media

The sharing economy also presents

opportunities for the hospitality,

entertainment and media industries.

When it comes to hospitality, sharing

economy companies like Airbnb

certainly make travel more accessible.

But entrenched hospitality players

can still depend on customers who

seek assurances of consistency. This

means they can stick to their core

competencies, while adopting elements

that are simpler, more efficient and

enhance the quality of customers’

experience.

The sharing business model has had a

profound effect on the entertainment

and media sector. However, the

sharing economy presents untapped

Popularized by the likes of Airbnb and Uber, the sharing economy

has undergone rapid growth over the last five years. Airbnb is

now active in more than 190 countries and valued at more than

$20 billion. Uber operates in more than 300 cities and is valued

at more than $50 billion.

1

Some projections put the sharing

economy sector’s revenues at $335 billion globally by 2025.

6 | Cushman &Wakefield