The document discusses the rise of the sharing economy and its impact. It notes that consumers no longer want to be told what to buy and are realizing they buy more than they need. Through technology and social media, consumers are building a new virtual marketplace to share goods rather than always buying new products. This sharing economy, estimated at $110-350 billion in 2013, allows people to resell and rent items to others, reducing waste and lowering costs. It affects industries like transportation, hospitality and more. Businesses must now consider models like renting and redeeming products, not just selling, as people share more. Their marketing must understand both individual buyers and how peers influence sharing decisions.

1. THE NEW CONSUMER REVOLUTION
OR
SHARING IS THE NEW BUYING
HIDVEGI, Zoltan
Media Planning Professional
email: zoltan@zoltanhidvegi.com
skype: zoltanhidvegi

2. THE GREAT PACIFIC GARBAGE PATC
LOCATION: PACIFIC OCEAN
SIZE: 3.5 MILLION TONS

3. What is Sharing Economy and how did it start?

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

7. Civils
PoliticsCapital
ENOUGH!
Consumers don’t want to be told what to buy anymore
Taxes,
regulations,
distributions
Pressure to
buy more and
more

8. Bankruptcy
Technology
Population
Assertiveness

9. 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

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

11. 2 ways of SHARING:
resell and rent
0
25
50
75
100
125
Total value of a product or a service consist of two
components
unused value
used value
In order to minimise the unused value the
consumers are looking for a product or service…
…which provides the lowest WASTAGE
…that is SHARABLE

12. Product
Service
Resell
Rent

13. The Sharing Economy also created it’s own financial
system in order to replace the traditional monetary
system

14. Which industries are affected?

15. Transportatio
n
Hospitality
Home
appliances
Entertainment

16. Food Beauty Pharma Luxury

17. FashionServices

18. Ok, but is this phenomenon significant?

19. Sharing economy Hungarian economy
in 2013 the size of…
$ 110 Bn
(some say it is $ 350 Bn)
$ 124.6 Bn
Source: http://www.gravitytank.com/pdfs/info_graphics/SharingEconomy_web.pdf
Wikipedia

20. 490 Bn USD
1.7 Bn USD
Estimated revenues in 2013
100 Bn USD
1.1 Bn USD
Source: Business Insider, FiveThirtyEight

23. How does it transform the business?

24. Decreasing sales
As people share more their need to buy commodities and services
will definitely decrease.
Less player
Competition will be even more tense as companies have to fight
much stronger for the less consumers
New business approach
Selling won’t 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

25. The company ensures the consumer
that it either buys back the product or
provides a market place where the
consumer can sell the product
The company receives a product or
service from the consumer in return for it’s
product or service
The company borrows the product to
consumer for a certain fee and time
The classic, traditional way of income
for the company. It sells the product or
service to the consumer
Selling
The company must consider other business models than
selling
Renting Exchanging
Redeeming

26. Past
What value/benefit can the
product/service provide to
me?
What value/benefit can the
product/service provide to me
and to my peer?
Present
Shift in the Consumer Behaviour

27. Need Search Decision Buying Advocacy Sharing
Need Search Decision 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

28. How does it influence the marketing communication?

29. Communication Strategy Planning process should be
reconsidered
SHARING (product, not information) must be built in the planning process
• Business and Marketing goals are not as
obvious and simple as they were so far
• Individual is not at the core anymore, but
understanding the peer’s decisions is essential
• Analysing the CONSUMPTION of the product is
not enough, collecting data about SHARING is
just as much important

30. Is there any brand who already deal with Sharing Economy?

35. Now it’s Your turn to deal with Sharing Economy!
HIDVEGI, Zoltan
Media Planning Professional
email: zoltan@zoltanhidvegi.com
skype: zoltanhidvegi