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Monday, May 19, 2014

Selling cars to the sharing generation

While more than half of prosumers and mainstream buyers are
 willing to rent tools to a stranger through a share scheme,
the percentage points drop sharply when it comes
to renting out big items like cars or houses.
GENERATION Z, the first generation of people to grow up surrounded by digital goods, have a unique trait, they prefer to collaborate rather than compete.
Not for them the golden consumer rule of “the one who dies with the most, wins”.
Instead, these new prosumers say the one with the smallest carbon footprint will sleep sweetest at night. Which is why they are willing to share rather than own. In fact, in 36 years’ time, people in cities will be more likely to share a car than to own one outright, according to the latest Prosumer report released by Havas Worldwide.
The study, which surveyed 10 574 people prosumer and “mainstream” buyers aged 16 and older in 29 markets, including South Africa, predicts a new collaborative economy, where selling a vehicle will require an entirely new way of thinking about consumption — “one that involves individuals not as passive consumers but as active participants”, according to Havas.
Doing it for us
The report states a third or more of the sample group believes that by 2050, people in cities will be more likely to share than own a car, energy production will be in the hands of individual producers, and communally operated healthcare markets will have replaced the current models. It will require a major shake-up for today’s industries for these predictions to happen, but only around a quarter of respondents (27%) believed this shake-up won’t happen, while the majority expect a consumer revolution, which means today’s toddlers will be doing jobs in business sectors that don’t exist yet.
These businesses will have to insert a higher level of trust and certainty into peer-to-peer transactions, starting by making stuff to last, and standardising cables and batteries to enable cross-platform sharing.
“They can reject planned obsolescence in favour of products capable of a second or even third life. They can make it easier for mindful consumers to turn their best intentions into actions they can be proud of. And they can use the digital data at their disposal to make the collaborative economy more personalised and targeted,” states the Havas report.
Collaborating companies
Havas points out that just as consumers are carving out new roles for themselves within the retail economy, brands are already finding new ways to make use of individuals in their operations.
The U-haul Investors Club invites individuals to invest in a vehicle via crowdfunding and receive a share of the income when the truck is rented.
New platforms of consuming less by sharing more are meanwhile also popping up. BlaBlaCar, available in 12 countries, uses social profiles to connect people who’d like to share a longer-distance car ride.
Among other things, members indicate their preferred level of chattiness, ranging from “bla” (just let me look out the window) to “blablabla” (I can’t wait to learn all about your childhood issues). More than a million people use the service each month.
Rental schemes here for a while
Some things are, however, more shareable than others. Havas reports there is a big difference in people’s minds between joining a car-sharing service such as Zipcar or daimler’s car2go and actually handing over the keys to one’s own vehicle to a stranger.
“So, for the near term at least, the sharing economy will have more in common with traditional rental schemes than with communal ownership. Nevertheless, it’s worth noting that two-thirds of our global respondents would be willing to rent at least certain categories of things they own to a stranger. They’re most likely to share items that are inexpensive, impersonal, and easily replaced (tools, sports equipment), and least likely to share big-ticket items (car, home) and those that are highly personal (clothing).
Owning it is handy
Among the surveyed group, ownership is still the most convenient.

Nevertheless, point out Havas, “the fact that nearly four in 10 chose sharing over owning supports the view that sharing will become an increasingly significant sector of the consumer economy, especially as better mechanisms are put in place to facilitate the transfer of goods between individuals”.