Loud Thinking May 13, 2014 at 01:51PM

How Big Brands Can Engage with the Sharing Economy

The growth (and growing competitive pressures) of the collaborative economy has big brands wanting in. As customers increasingly buy from one another (and not from your large company), you need to engage with this market or risk watching your own revenue streams be disrupted. Understanding the core drivers behind this new economy, and learning how to fit them within existing models, will help established companies enter the collaborative arena. Consider these ideas:
Less buying, more sharing. Stop measuring success in terms of units sold – think in terms of units used. People are buying less and sharing more, so think about offering goods and services outside the traditional sphere, for example, through sharing or rental services.
Less consuming, more producing. New technologies have turned individuals into producers and sellers. By integrating crowd-produced goods into your supply chain (like West Elm did with Etsy) and attracting small-scale sellers, you gain a competitive edge.

Adapted by HBR from “ Established Companies, Get Ready for the Collaborative Economy” by Alexandra Samuel.

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