PWC Etude Sharing Economy PDF
PWC Etude Sharing Economy PDF
PWC Etude Sharing Economy PDF
Economy
pwc.com/CISsharing
I. IV.
Research Methodology The Business of Sharing
• Automotive
• Retail and Consumer Goods
II.
• Hospitality
• Entertainment, Media and Communications
3
What we did and who
we talked to
Around the world, a new wave of peer-to-peer, access-driven
businesses is shaking up established categories. Whether
borrowing goods, renting homes, or serving up micro-skills
in exchange for access or money, consumers are showing a
robust appetite for the sharing-based economy.
I. Research Methodology 4
The Survey: Total US Adult Population:
We sampled US consumers who have
some familiarity with the sharing
economy. This sample cut across age,
income, region and gender.
I. Research Methodology 5
Conversations with industry specialists:
In a space as new and as ambiguously defined as the sharing economy, we wanted to hear from the people closest to it, those
at the leading edge of technology and business who could offer nuanced views of what’s happening and why it matters. To do
this, we held salons in two cities—New York and San Francisco—where we invited industry specialists to weigh in on the state
of the sharing economy and the future it holds. Our panelists included:
Social Listening
Chatter on social media can often reveal changes in consumer attitudes and perceptions. To capture this, PwC
conducted software searches across “the social web”—including blogs, Twitter, Facebook, forums and online news
outlets with comment boards—by creating a search of relevant key words, fine-tuning and optimizing this list based
on results, and then analyzing the data against situational context.
I. Research Methodology 6
A Snapshot of the
Sharing Economy II.
7
Trust, convenience and a sense of community are all
factors in pushing adoption of the sharing economy
forward. Thanks to consumer willingness to try mobile
apps, there are lower barriers to entry when it comes to
building brands and scaling up quickly—the innovation
clock is now set to fast-pace, and will get even faster as
consumers become more trusting of relationships tied to
social sentiment and communities of users.
44 %
of US consumers are
familiar with the
sharing economy
Of those consumers who have
tried the sharing economy
19%
some concerns about them”
6%
18 to 24 year olds
2%
Households with income
between $50k and $75k
7%
of the US population are providers in the sharing economy;
they cut across age and household income
ages 55 to 64 8%
24% ages 25 to 34
ages 45 to 54 14%
24%
ages 35 to 44
$200,000+
11%
19% Less than $25,000
$150,000 - $199,999 3%
16%
$50,000 - $74,999
Sharing has, of course, been around forever—and many industries offer alternatives to ownership.
But as a model, the sharing economy is distinguished by these core pillars:
Digital platforms that connect spare capacity and demand More collaborative forms of consumption
Sharing economy business models are hosted through Consumers who use sharing economy business models are
digital platforms that enable a more precise, real- often more comfortable with transactions that involve deeper
time measurement of spare capacity and the ability to social interactions than traditional methods of exchange:
dynamically connect that capacity with those who need it.
• Airbnb and CouchSurfing provide travelers with the
• Airbnb matches spare rooms and apartments with ability to connect with local hosts and receive travel tips
travelers in need of lodging in a personalized fashion
• Zipcar matches spare cars with local demand • Ride sharing services such as RelayRides and Lyft
depend on users being comfortable trusting strangers
People have always bartered and traded services, but the
to complete their journey safely
usability of this process is unprecedented thanks to the
growing number of digital devices that make matching Branded experiences that drive emotional connection
demand and supply easier than ever.
Today, the value of a brand is often linked to the social
Transactions that offer access over ownership connections it fosters. Managing these connections is
fundamental to successful marketing. In the case of
Access can come in a number of forms, but all are rooted in
sharing, experience design is critical to engendering
the ability to realize more choice while mitigating the costs
emotional connections. By providing consumers with ease
associated with ownership:
of use and confidence in decision-making, a company
• Renting moves beyond a purely transaction-based relationship to
become a platform for an experience—one that feels
• Lending more like friendship.
• Subscribing
• Reselling
• Swapping
• Donating
69%
places, love and community’ it espouses, and more because
consumers want a better deal for their travel dollars. The
say they will not trust sharing majority of Airbnb consumers choose to rent the entire
economy companies until they are place, rather than sharing quarters or a meal with the
recommended by someone they trust owner. Here, as with other sharing economy platforms,
trust prevails based on peer reviews, not on one-to-one
peer interactions.
But if trust in individuals and institutions is waning or
at best holding steady, faith in the aggregate is growing.
More and more, peer-review systems are becoming “I don’t want to know who owned
arbiters of quality. According to Nielsen’s 2012 Global
Trust in Advertising Survey, 92% of consumers in 56 the clothes before me or where they
different countries said they trusted word-of-mouth or wore them. I want to know that
recommendations from their friends and family above
all other forms of advertising. In the US today, 64% of they’ve been properly cleaned and
consumers we surveyed say that in the sharing economy,
peer regulation is more important than government
cared for.”
regulation. 69% say they will not trust sharing economy — Kathryn Duryea, Marketing Consultant,
companies until they are recommended by someone Former VP Marketing, Rocksbox
they trust.
18
The Sharing Economy:
Automotive
Zipcar. RelayRides. Car2Go. Lyft. Uber. The sharing All of this has made sharing systems—be they car-sharing,
economy is quickly paving new roads in the automotive ride-sharing or bike-sharing—far more appealing. And
industry, establishing a web of transportation options. while the price of gas may be going down, the trend away
Hitchhiking, it seems, is back—in one form or another. from ownership isn’t likely to change considerably.
According to our data, 8% of all adults have participated This is a big culture shift. And for those who figure out
in some form of automotive sharing. 1% have served as how to shift gears and get in the fast lane, it can be big
providers under this new model, chauffeuring passengers business. What’s next? No one can say precisely—the
around or loaning out their car by the hour, day or week. rules are being rewritten every day. But here are a few
Of all the categories we examined, this is the one in considerations to keep in mind.
which consumers would most like to see the sharing
economy succeed.
Consumer preference is not surprising given the trend in car The automotive industry is just a slice of the pie—
ownership over the past decade. One-third of consumers today, it’s all about the mobility industry. More and
we surveyed indicated that the automotive industry yields more automotive companies today are rethinking their
too much waste. Chief among them are millennials, who positioning—reframing themselves as providers of
notably don’t drive as much as previous generations did at a mobility, not merely manufacturers of vehicles. But
comparable age. They are less likely to get drivers licenses, as automotive expands into mobility, new players are
and their view of cars is more perfunctory than emotional— surfacing as competitors: for instance, Apple, one of the
they largely see cars as transportation, not as status symbols. mobility leaders, enters the category. In this context,
legacy manufacturers must find ways to add unique value
Smartphones have also pushed up the relative costs of to consumers’ mobility day in and day out—perhaps
driving. A passenger can read email in transit and be becoming a purveyor of mobility at large, from selling cars
“productive”—but a driver behind the wheel can’t, or for purchase to facilitating ride-sharing, or even partnering
shouldn’t. (Same goes for drinking: according to Uber, since with public transportation in cities where systems are
the launch of UberX in California, drunk-driving crashes poorly run or underused.
decreased by 60 per month for drivers under the age of 30.)
32%
Getaround
More choice in the marketplace
The recession may be over in the United States, but the What’s the appeal? Besides a growing appetite for a more
values that emerged during it appear to be staying put—and minimalist lifestyle, consumers say these sharing-based
the sharing economy is giving new weight to the axiom “less services offer better pricing, more convenient access, and
is more.” 78% of consumers we surveyed agreed that the more choice in the marketplace. There are some concerns,
sharing economy reduces clutter and waste—millennials chiefly around uncertain quality (48% of consumers we
and households with kids most strongly agreed. These surveyed listed this as a concern), and consumers say
attitudes are a growing threat to a retail industry that is they are more likely to trust a leading department store
struggling to buoy its numbers—in December 2014, waning than Poshmark, the emergent fashion darling of this
holiday sales led consumer purchases to decline 0.9%, new economy.
despite economic growth and lower gasoline prices4. And yet, a threat to retail can just as easily be flipped into
a tremendous opportunity. After all, while ecommerce
As a result of these shifts in cultural mores, a “new retail” is hollowing out the physical space, many retailers have
is emerging under the umbrella of the sharing economy. adeptly adapted and now help curate a more engaging
Consider Yerdle, an app designed to enable people to give omnichannel experience for their shoppers. Similarly, the
away their stuff in exchange for credits they can use to “buy” rise of borrowing doesn’t mean retail will be decimated—
other people’s castoffs. The company has an ambitious goal it’s simply a heads up for companies to take a fresh look
in mind—reducing the things we buy by 25%. Or Poshmark, at their brand, their product and their operations in this
a fashion marketplace that lets people shop for items sold new ecosystem and weave sharing into the omnichannel
from others’ closets. There’s also Spinlister, a peer-to- experiences they are creating.
peer marketplace for renting bikes, skis, surfboards and
other sporting equipment; Kidizen, a mobile, peer-to-peer
marketplace allowing parents to buy and sell their children’s
clothing, toys, shoes; and Rocksbox, a subscription rental
service for high-end jewelry. In every niche of retail, it
seems a sharing alternative is popping up.
Quality is the purchase consideration to beat: The sharing Re-assess retail space: Thanks largely to the shifting
economy has opened up new avenues for monetizing emphasis on experience, big and small brands alike are
investments in material goods—be it through rental looking for flexibility in how they reach consumers. That
income or resale revenue. As a result, quality becomes means rethinking the channels they use—in particular, their
an even bigger factor in the purchase decision process, physical footprint. Enter Storefront, a startup that enables
particularly on bigger ticket items. Durability of hardware retailers to set up pop-up shops or sell items in boutiques.
matters—so too does brand name as those looking to rent The platform connects those who have shops or empty real
or buy used goods will seek the reassurance that comes estate in highly trafficked areas with merchants seeking to
with brand recognition and corresponding caliber of goods. peddle their wares—in short, it’s an Airbnb for merchants,
For marketers, it will be important to reassess core brand offering the benefits of both temporariness and uniqueness.
messaging and the role that a quality seal plays within it. Listings include full retail stores that can be used as pop-
Similarly, as goods get passed around the market, brands up shops as well as shelf space in boutiques, and locations
will need to figure out their role in upholding quality range from neighborhood shops to subway stops to hotels.
maintenance to protect the brand.
The flexibility that Storefront offers can be a boon to
Boost brand goodwill through sustainability: 76% of brands looking to dial up their experience or pitch new
consumers we surveyed say the sharing economy is better products. So far, more than 1,000 merchants have used the
for the environment, and 79% say it’s good for society platform to open up shop in New York and San Francisco.
overall. For brands, there’s an opportunity to use the And for those providing the space, it’s an ancillary revenue
sharing economy to promote sustainability messaging and stream—on average, most retail spaces are closed for 15
raise esteem in the minds of consumers who are growing hours per week, time that could be otherwise monetized
more environmentally aware. Patagonia and Levi’s, through new platforms.
for instance, have partnered with Yerdle to distribute
unsold merchandise, thereby reducing waste by finding a
marketplace for these goods instead of disposing of them “Gyms, event spaces, even
in a landfill.
restaurants that aren’t used during
Patagonia has encouraged sharing on Yerdle with a free
item from Patagonia’s pre-used Worn Wear collection
certain hours—all these have the
in exchange for material donations to Yerdle, and potential to be opened up in the
by contributing excess Worn Wear products from its
warehouses. Currently, Yerdle hosts nearly 1,000 Patagonia sharing economy.”
products, which are among the 10 most popularly
— Chelsea Rustrum, Curator at Collaborative Consumption
exchanged goods on the site. This collaboration provides
both Yerdle and Patagonia with significant market
“Airbnb is the worst idea that ever worked,” said Brian marketplace. Proprly is a cleaning and key delivery service
Chesky, CEO of Airbnb, at a recent PwC Corporate for Airbnb hosts. Guesthop provides support services for
Leadership event. When Chesky hatched the hospitality home sharers—from check-ins, key management and
startup, enabling everyday homeowners and renters to rent cleanings to full time, short-term rental management.
out a spare room, it was so new that to assess the potential Pillow handles all the details of hosting, including
market size, he figured out the number of airbeds sold each marketing, guest communications, booking and pricing
year and used that as an estimate. optimization, cleaning, repairs and any troubleshooting.
Today, Airbnb is reportedly valued at $13 billion, more than These ancillary services are designed to capitalize on the
mature players such as Hyatt or Wyndham Worldwide. growing popularity of hospitality sharing sites. Airbnb,
The company booked stays for 20 million travelers in for instance, now has 10 million bookings and is used
2014, operating with about 1,500 employees in 20 cities by more than 50,000 renters per night. But they are also
worldwide5. It has helped pioneer a market that is radically helping to close critical gaps in the sharing hospitality
changing consumer hospitality preferences and behaviors. industry—namely, the issues of friction and trust. With
Our data shows that 6% of the US population has management companies as intermediaries, there’s less
participated as a consumer in the hospitality sharing hassle for the renter and rentee in sorting out the logistics
economy; 1.4% has served as a provider. The platforms of the arrangement, and, presumably, greater trust that the
are plentiful: on the lodging side, Airbnb, CouchSurfing experience will be of consistent quality.
and HomeAway are big contenders, and the food and
dining industry is rapidly catching on, too. Feastly connects Mitigating the potential unreliability of strangers is still a
diners with chefs offering unique food experiences outside challenge. The hospitality sharing economy is appealing
of restaurants; similarly, EatWith links diners and hosts, because it offers better pricing, more unique experiences
creating a social experience where guests get to know one and more choice, but security, hygiene, and uncertain
another over a locally authentic, home-cooked meal. quality still loom as big concerns. For these reasons, our
survey showed that consumers familiar with the sharing
Other likeminded models are popping up across the economy are 34% more likely to trust a leading hotel brand
globe, as are businesses pegged to the hospitality sharing than Airbnb.
“There’s no business that has been launching the wavelength.io beta was bringing to market
legal movie sharing, wrapped around a great UltraViolet
more disrupted than entertainment experience… Not surprisingly, what we have built has
been controversial6.”
and media. It’s a perfect case study
of people digging their heels in And yet there are areas in which sharing, however loosely
defined, is coming to life. Two decades ago, an aspiring
and winning battles but not artist needed a bundle of money to make a film; today
there are alternate—and very viable—ways of making and
winning the war.” monetizing music. Consider the artist Amanda Palmer, who
— Jim Griffith, Dean of eBay Education, Host of eBay Radio in 2012 announced a Kickstarter campaign to raise funds
and Author of The Official eBay Bible for a new recording and pulled in nearly $1.2 million from
her fans in exchange for pre-orders of the album. And just
as artists are finding alternative ways to create, consumers
are discovering alternative ways to consume. According
Without hesitation, the industry specialists we spoke with to a survey conducted in December 2014 by the Consumer
throughout our research said that the media, entertainment Reports National Research Center, 46% of American adults
and communications industries have been the most with streaming media accounts admitted to sharing log-in
impacted by the sharing movement—and view their actions credentials with people living outside of their homes.
as a cautionary tale of what not to do.
In our survey, this is the highest category for consumer
The ambiguity of the sharing economy is particularly participation—consumers are more engaged with
evident in entertainment and media, where consumers entertainment and media sharing than they are with
are open to “sharing” products, but it’s less about the automotive, hospitality or retail. The most compelling
underutilization of assets and more about the intangibility benefits of sharing in this sector are better pricing, more
of them. To that end, legal and contractual impediments choices, greater access, and more unique experiences.
may make it difficult to ramp up a formalized sharing
model at the same speed as industries like automotive and And businesses are ultimately catching on. Spotify has
hospitality have. Wavelength, a startup designed to let popularized the act of listening to customized music
users freely stream the movies their friends own, ended without physically owning an asset. Sprint has tried to
just two weeks after it launched. In his closing statement, capitalize on consumer sharing preferences, most recently
Wavelength’s founder wrote that “One of our goals in with its Sprint Family Share Pack.
More viral and effective promotional models are another Understand the appeal of sharing, and ways to make
way in which sharing can boost engagement. Businesses it work for your business: One way or another, content
want to expand their access—and if that access can be sharing appears here to stay. Faced with that reality, media
shared among several users, it could lower the cost of trial providers can either continue to fight the threat or explore
and raise consumers’ willingness to pay. In entertainment, the potential opportunity behind it. That is, sharing creates
media and communications, there can often be large new platforms with greater reach and more highly engaged
variances in marketing costs based on the scalability of audiences—and with it, opportunities to move beyond
the model and ease of discovery. And yet socially-oriented one-to-one ownership models and explore new distribution
experiences can help keep marketing costs to the lower models. Likewise, content creators will need to adopt
end of the range—for instance, both Uber and Airbnb metrics beyond linear sales and figure out how to monetize
soared in popularity without relying on big and costly accordingly through new platforms, rather than blocking
marketing campaigns. them altogether. n