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Traditional economy Vs Sharing economy

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Traditional economy Vs Sharing economy

The E conomy collaborative , economic system in which goods and services and exchanged via shared digital platforms, beginning to revolutionize the traditional consumer who ruled until today.

The digital factor is an essential means of contributing to this system since it serves as a platform through which the members can interact. The interesting thing about this open and dynamic system is that users select the role they want at all times, or several roles simultaneously, for example, seller and buyer.

In Spain since 2012 the use of the Sharing Lithuania Phone Number List began to spread through platforms such as Airbnb, Bla Bla Car, Uber … A study published by the European Sharing Economy Forum (Sept. 2016) revealed two very important data:

In Spain, 6% of the population uses the collaborative economy, either to consume or to offer products and services on a regular basis, ranking at the head of Europe, where the average is 5%.
The transport and accommodation sector accounts for 80% of these investments. During the next few years, we will also see how traditional sectors such as financial, which now accounts for 6%, will begin to gain weight in these new models.
This new form of economy goes hand in hand with the so-called group of Millennials, whose motto can be said to be “sharing and experiencing better than owning”. This new generation leaves private property in the background and prioritizes concepts such as experience, connectivity and community. For companies whose audience is millennial, these new values ​​must be taken into account in the products, services or in the way of communicating with them.

 

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How are traditional companies adapting to the rise of this new trend?

In real estate, Airbnb created a turning point as the biggest competitor in terms of the sharing economy, extracting market share from the hotel side. There are already companies with traditional models that have been able to adapt, an example of this is Room Mate, a Spanish hotel chain with an international presence. Room Mate has known how to reinvent itself and listen to the tastes of its customers. It continues to maintain hotel rooms and also offers apartments in strategic corners of the cities, without being within a hotel complex and at affordable prices.

We are going to highlight three points in which the traditional economy can imitate the advantages of the collaborative economy or continue to allow the latter to gradually gain ground:

1- The cost of the product or service. The collaborative economy offers a service or a product at a lower cost than traditional companies. The effort to reduce costs to remain competitive is essential, since it is estimated that 82% of users prefer the sharing Betting Email List to save. Almost all of them, if the traditional company offered them the same prices, would return to it.

2- Customer facilities. The digital support on which many collaborative companies rely is an incentive that the consumer values ​​and sometimes prefers: convenience, availability, customization and simplicity are key factors. Traditional companies have a long way to “make” both the relationship with the customer and the purchasing process more flexible.

3- Trust. This is a key element of the sharing economy that generates great value for it. The profiles, comments and evaluations of the users contribute knowledge and confidence to the product / service that they are going to consume. Most conventional companies have shortcomings in this regard: ambiguity and poor communication with the customer. Enhancing the feeling of affinity and closeness with the brand and developing improvements in the shopping experience is essential to maintain consumer loyalty.

In conclusion, it is still too early to know if the collaborative economy will occupy a relevant place in the market in the medium term, what is a fact is that in sectors such as transport or accommodation, these new companies are already fundamental elements and competitors direct from the traditional sector.

Personally, I hope that at least these new players will tighten a bit on traditional companies and show us that different things can be done, cover insights yet to be discovered and take better care of customers.

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