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2/9/2018

The Sharing Economy: Statistics and Examples

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The Sharing Economy: In the Know from CIT
You've heard of the Sharing Economy because of some well-known start-ups with giant valuations like ride-sharing service, Uber, and home-rental platform, AirBnB. The sharing economy is growing fast. But how are mid-market companies being affected by this trend?

Sharing Provides Positive Impact for Energy & Consumer Goods Industries
The sharing economy is influencing the energy industry through the development of the smart grid especially distributed generation which relies on electricity-generating technology used by a customer or independent producer. For companies that manufacture or service these technologies, the growth potential is huge. This new distributed model makes it easier to share resources reducing the need for companies to buy expensive wholesale energy during peak demand periods. This cuts costs and boosts revenue for them. Retailers and consumer goods companies are also being affected by this trend thanks to rising demand for sharing services. Today's customers are willing to share a surprising number of things. The sharing economy reduces price sensitivity for high margin goods meaning retailers can raise prices on high quality products without seeing major sales losses.

How the Sharing Economy is Affecting Retail Space & the Real Estate Industry
The sharing economy can also help with retail space. Platforms like Storefront, which works with 80,000 brands, let retailers partner with other merchants to create pop-up shops inside of stores or sell their goods at existing locations. This provides new ways for brands to reach in-person customers while helping larger retailers earn extra revenue from unused space. Commercial real estate companies are used to seeing their holdings as hard assets instead of providing short-term accommodations, amenities and services. But access is the new ownership and companies are more flexible about where and how long they keep office space. Providing access to these spaces like WeWork does is a new priority. Firms can focus on sub-leasing and short-term configurable work spaces to reduce vacancy time and lower idle capacity. Since 50% of the U.S. workforce is expected to be freelance by 2020, there will be more demand for temporary work spaces. The sharing economy is one of the fastest growing business trends in the world. That means it's time to start paying attention to sharing.

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