Sharing Economies

  Sharing is taught at an early age and is an important part of life. Partly due to the growth of the Internet, it is now the driving force behind an industry with great potential. A national survey of nearly 400 U.S. consumers shows that trust is the primary barrier to participation in a sharing economy. As Paul M. Davis reports in his article, "Survey Finds Trust is #1 Barrier to Sharing," published on Shareable, "67% of respondents expressed trust concerns as the primary barrier to joining a collaborative consumption service, with 30% fearing that their goods will be stolen or broken, 23% expressing a basic mistrust of strangers, and 14% expressing 'privacy concerns.'"
The study also reveals that people participating in a sharing economy tend to be younger, with 31% of Gen X and 24% of Millennials being likely to participate, in contrast to 15% of Baby Boomers.
The research found that those in a living situation with a household income of more than $75,000 per year were more likely to join a sharing service than those who make less than $40,000 per year. Those sandwiched in between are slightly less likely to join a sharing service.
Although the trust barrier will need to be broken down further before the general public begins participating in sharing services, survey respondents reflected positively on the potential success for this industry. According to Davis, "Consumers who participated in the survey reacted well to both the rational benefits of sharing, such as the flexibility it offers, as well as emotional or moral benefits such as contributing to a sense of community."
Two years ago Shareable published The New Sharing Economy, a study that explored aspects of the emerging practice of collaborative consumption. Since then, studies have shown that there is profit to be made from a participatory economy.
The sharing services that are most attractive to consumers offer goods such as books, lawn and yard equipment, and household goods. Services that focus on transportation may yield unsatisfactory profits, as only 36% of respondents are interested in these practices.
Sharing has the potential to cut down on environmental concerns, connect people with one another, and offer goods and services at a cheaper rate than companies, while also putting seldom-used possessions to use. If our global community can foster more trust, market researchers will most likely see the sharing economy grow at an exponential rate.   Image by courosa, courtesy of Creative Commons licensing.    Tweet