Renting Sharing for 2011

We covered the re-emergence of fractional ownership and lifestyle leasing business models (no more dodgy timeshares!) in our TRANSUMERS briefing way back in 2006. Brands like Rent the Runway (fashion) and Avelle (handbags - formerly Bag, Borrow or Steal) and P1(luxury cars) have shown that for many consumers, access is better than ownership. Indeed, over the past few years, there have been few industries that haven't got the 'Netflix treatment', from textbooks to jewelry to educational video games to calculators.

For consumers, the appeal is obvious:

• Traditional ownership implies a certain level of responsibility, cost and commitment. Consumers looking for convenience and collecting as many experience as possible want none of these things.
• Fractional ownership and leasing lifestyle businesses offer the possibility of perpetual upgrades to the latest and greatest, the ability to maximize the number and variety of experiences, and allow consumers to access otherwise out-of-reach luxuries.
• Owning bulky, irregularly used items is both expensive and unsustainable, especially in dense urban environments where space is at a premium. With more consumers having mobile access to online systems, it becomes easier to book items whenever and wherever they are needed (see PLANNED SPONTANEITY).

Now, this could be the year when sharing and renting really tips into mainstream consumer consciousness. Two key developments:

• Expect to see more and more big brands getting in on the action. Take for example car sharing, one of the great successes of the OWNER-LESS trend, with car clubs springing up all around the world: Zipcar is the market leader, but similar services can be found everywhere from Australia (GoGet) to Brazil (Zazcar). Big brands, having seen the success of these smaller startups are increasingly getting in on the action: Hertz launched their car sharing service Connect back in December 2008, and now Daimler has added Hamburg and Austin, Texas following the successful pilot of their car2go pilot in Ulm (Germany). In July 2010, Peugeot launched its Mu 'mobility' service in the UK after successful launches in France, Germany, Italy and Spain. Customers can rent cars, scooters, vans or even bicycles.

• Local authorities are finding that shared solutions allow them to expand their services at a lower cost, and in a sustainable manner. Public bike programs have been the global hit of 2010, with schemes launching in Minnesota, London, Mexico City, and across the Ruhr in Germany. Now, governments are exploring new forms of transportation, with Paris (who pioneered bike sharing) launching Autolib, an electric car sharing scheme in September 2011, and the New York City Department of Transportation announcing in October 2010 that they had partnered with Zipcar.

Another big boost for the OWNER-LESS economy is that with so many highly visible transportation initiatives, all consumers are becoming used to seeing schemes in action, and more and more are feeling comfortable with the idea of sharing and renting large, expensive or often-idle objects.

P.S. The brief introduction above only looks at brand/ government offerings. There is also a whole host of P2P sharing sites that are springing up to facilitate renting and sharing between consumers, with everything from homes to fashion, to cars (and car parking spaces) available. Watch this space for a full Trend Briefing on the rise of OWNER-LESS.

via trendwatching.com

Posted via email from Stuff important and amusing to Rob OBrien