Havas Worldwide New Consumer and the Sharing Economy


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An exploration of shifts currently under way in consumer attitudes and behaviors, including the growth of the peer-to-peer and sharing economies. Includes breakouts for millennials and Prosumers, and implications for brands. Based on a 2014 Havas Worldwide study of more than 10,500 consumers in 29 markets.

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Havas Worldwide New Consumer and the Sharing Economy

  1. 1. Spring 2014
  2. 2. Our 2014 Global Prosumer Study: The New Consumer and the Sharing Economy 29markets n=10,574
  3. 3. Who are Prosumers?  For more than a decade, Havas Worldwide has been tracking the roughly 15–20% of consumers who are influencing trends and shaping markets around the globe  Key characteristics: * Embrace innovation * Constantly seek out information and new experiences * Enthusiastic adopters of new media and technologies * “Human media” who transport attitudes and ideas * Marketing savvy and demanding of brand partners * Highly influential and sought-after for opinions and recommendations  In this study, 20% of the sample qualify as Prosumers
  4. 4. As our consumption- based economy nears the century mark, it’s showing signs of strain… Image credit: Bruno Casonato@flickr.com
  5. 5. We simply aren’t getting the pleasure hits we  once did from shopping Instead of excitement, we feel anxiety over  unpaid bills Instead of enjoying the instant gratification of  a glittery find, we worry about the effects of  our consumption choices on the planet And many of us feel constrained by all the  “things” we have amassed—purchases that are  physically filling our homes and garages and  psychologically weighing us down
  6. 6. “My country’s current economic model is not working” Image credit: Dan Simpson@flickr.com Just 1 in 7 consumers worldwide believe their nation’s economic model is successful Base: Total respondents
  7. 7. “The economic crisis is only a problem for Western/developed countries” And only1 in 4 believe the problem is limited to developed nations Base: Total respondents
  8. 8. “Overconsumption is putting our society and the planet at risk” Image credit: Seattle Municipal Archives@flickr.com
  9. 9. THE SIMPLE TRUTH IS THAT  “HAVING MORE” IS NOW  GIVING US LESS Less Happiness ● Less Satisfaction,  Less Security ● Less Time ● Less  Space ● Less Freedom ● Less Pride
  10. 10. “I could happily live without most of the items I own” Image credit: Stuart Heath@flickr.com Base: Total respondents
  11. 11. “I often buy items I don’t really need —and I regret it” Image credit: Thomas Hawk@flickr.com
  12. 12. “I try to throw out or give away my unneeded possessions at least once a year” Image credit: Benjamin Stäudinger
  13. 13. vs… “I respect/admire people  who have enough money to  buy whatever they want” “I respect/ admire people who make an effort to reduce their consumption” Image credit: Brave New Films@flickr.com
  15. 15. “If people consume less, it will destroy jobs” Image credit: Evan Leeson@flickr.com Base: Total respondents
  16. 16. “Buying products is a patriotic act; it helps my nation’s economy” Base: Total respondents
  17. 17. “A healthy economy requires a high level of consumer spending” Image credit: Mike@flickr.com Base: Total respondents
  18. 18. SO HOW DO WE CONSUME IN A  WAY THAT IS BETTER FOR US ALL?  We Replace Guilt with Purpose
  19. 19. “Progress is not about consuming more but consuming better” Image credit: Vadim Timoshkin@flickr.com But what does it mean to “consume better”?
  20. 20. Consuming only what I truly need Image credit: Gregory Tran@flickr.com For myself, “consuming better” means…
  21. 21. Recycling and repurposing Image credit: GabPRR@flickr.com For myself, “consuming better” means…
  22. 22. “When considering buying an item, I often factor in how much money I could resell it for” “Yesterday, I threw away; today, I resell or donate” A shift toward a more circular economy?
  23. 23. Living more sustainably/producing less waste Image credit: Susanne Stoop@flickr.com For myself, “consuming better” means…
  24. 24. Consuming products of better quality/ durability For myself, “consuming better” means… Image credit: Geraint Morgan@flickr.com
  25. 25. Buying products from local producers so as to have a positive effect on my community For myself, “consuming better” means… Image credit: Susy Morris@flickr.com
  26. 26. Buying things at lower prices For myself, “consuming better” means… Image credit: Robert Bruce Murray III
  27. 27. Producing more of the things I use (e.g., growing vegetables, making candles) For myself, “consuming better” means… Image credit: quimby@flickr.com
  28. 28. Consuming less For myself, “consuming better” means… Image credit: Toban Black@flickr.com
  29. 29. Buying as a collective and sharing the use of the item For myself, “consuming better” means… Image credit: Toban Black@flickr.com
  30. 30. Looking for Retail Alternatives Local ● Secondhand ● Independent
  31. 31. “I respect/admire people who buy locally as much as possible” Image credit: Robert Couse‐Baker@flickr.com
  32. 32. I like buying previously owned goods because… It saves me money It’s better for the environment than buying new It makes me feel good to help out the seller The items come with a history I would rather purchase from an individual than from a store I feel less guilty than when I buy something new I don’t like to buy previously owned goods
  33. 33. “When possible, I prefer to buy directly from an individual producer rather than from a store/shopping center”
  34. 34. What are all these forces and shifts leading to? Image credit: Anne Landois‐Favret@flickr.com
  35. 35. THE NEXT WAVE OF CONSUMERISM:  COLLABORATIVE CONSUMPTION Hands‐on ● Proactive ● Communal  Mindful ● (More) Sustainable
  36. 36. “We would have a better society if people shared more and owned less” Even in markets with strong histories of capitalism, people are embracing the notion of access over ownership
  37. 37. “I prefer to share things rather than own them” Base: Total respondents Image credit: acute_tomato@flickr.com
  38. 38. Which comes closer to your point of view? Around 4 in 10 would rather borrow or rent most things rather than own them
  39. 39. “I think I could go online and find someone willing to lend/ rent me just about anything” The Economist values the peer‐to‐ peer rental market at $26BN The advent of social media has made a sharing economy a practical option for the first time Image credit: Ross@flickr.com
  40. 40. “I belong to a sharing service or expect to join one within the next year” “In the future, I expect to belong to a number of sharing services” On New Year’s Eve 2013, 141,000 people  worldwide stayed in an Airbnb accommodations share
  41. 41. “If I owned a home, I would be willing to contribute to the purchase of communal tools that my neighbors and I would share” Base: Total respondents
  42. 42. Which aspects of the sharing economy appeal to you? Saving money Feeling active and useful Reducing my consumption/carbon footprint Supporting individuals and/or  small/independent companies Meeting new people Contributing to a broader move away from  hyperconsumption Having an interesting experience/doing something  most people haven’t tried yet I have no interest in the sharing  economy It’s not just about money
  43. 43. How likely are you to try each of these sharing services? (very/somewhat likely) Equipment sharing  (e.g., lawn mower, electric drill)  Car sharing Media sharing  (e.g., books, computer/video games, DVDs) Accommodations sharing
  44. 44. Which of these things would you be willing to rent to a stranger through a sharing service?
  45. 45. On 3/3/14, Kickstarter passed $1BN in pledges “I have contributed to a crowdfunding project or expect to do so within the next year” Image credit: byronv2@flickr.com
  46. 46. WHAT’S NEXT?
  47. 47. By the year 2050… “People in cities will be more likely to share a car (through a sharing service or joint purchases) than to own one outright” Image credit: Andreas Levers@flickr.com
  48. 48. “Most energy won’t be produced by big businesses but by individuals who will sell/exchange it with other individuals” By the year 2050… Image credit: Johannes Ouendag@flickr.com
  49. 49. “Communities will create their own healthcare marketplaces rather than rely on outside providers and insurance companies” By the year 2050… Image credit: daniel@flickr.com
  50. 50. “None of the above” By the year 2050… Just 1 in 4 respondents expect the status quo to remain in each of these areas Image credit:  Stuart@flickr.com
  51. 51. 8 ROLES BRANDS CAN AND SHOULD PLAY WITHIN  THIS NEW ECONOMIC MODEL Guarantors ● Facilitators ● Sustainability Partners ● “Lending  Libraries” ● Connectors  ● Curators Employers  ● Champions
  52. 52. “I would like brands to guarantee the quality/ authenticity of products people resell on the Internet” 1. Brands will serve as facilitators and guarantors in the peer-to-peer economy “When doing business with another individual, I would feel more protected if a company/website served as an intermediary” Image credit: Carlos@flickr.com
  53. 53. Don’t want to pay for parking at the airport? FlightCar will rent out your car while you’re away—and even throw a free car wash into the deal
  54. 54. Zilok serves as a go-between, helping both P2P and business lenders rent their goods
  55. 55. “Brand warranties should extend to everyone who buys a product, not just the first person who buys it” China’s Lenovo now ties most of its warranties to the actual machine rather than to the original owner
  56. 56. Adding security to resales, Chanel handbags come with embossed “authenticity cards”
  57. 57. “I admire companies that are finding ways to help consumers waste less” 2. Brands will help people consume more sustainably Image credit: Sam Javanrouh@flickr.com
  58. 58. Taxi2Virgin Atlantic helps travelers save money and reduce carbon footprints by sharing cabs from the airport
  59. 59. The Soap Dispensary and in.gredients Vancouver’s The Soap Dispensary is among a number of retailers helping consumers cut back on excess packaging
  60. 60. With locations worldwide, Repair Café brings together handy volunteers and people who would like to fix rather than replace their small appliances and other items
  61. 61. ITC Hotels seeks to provide a luxury experience made “guilt free” through the use of sustainable materials and processes
  62. 62. 3. Brands will help create secondary markets “Companies/retailers should help customers resell their goods” “I admire brands that encourage their customers to recycle/resell the products they buy from the company”
  63. 63. Through its Garment Recycling Program, H&M collected 7.7MM lbs of used clothing worldwide in 2013, which was then resold as is or converted into other products
  64. 64. UK retailer Argos offers a £5 voucher to customers who donate an old toy, with proceeds going to a children’s charity
  65. 65. Sweden’s IKEA turned its Facebook page into a digital flea market, letting customers resell their IKEA furniture
  66. 66. A growing number of brands are bringing premium goods into the P2P economy
  67. 67. 4. Brands will find ways to offer access, not just ownership Image credit: Brenda Clarke@flickr.com
  68. 68. Subscribers to RocksBox receive designer jewelry they can keep for as long as 60 days or buy at a discount
  69. 69. Parents can rent educational toys for their tots through SparkBox Toys
  70. 70. Subscribers to Bag Borrow or Steal have access to high-end designer handbags, jewelry, sunglasses, and watches Image credit: StyleCartel.com
  71. 71. 5. Brands will build community and connections Image credit: Keith Chastain@flickrcom
  72. 72. Launched by home improvement retailer B&Q, Streetclub helps neighbors come together to improve their communities
  73. 73. DogVacay connects dog owners with sitters—and includes free pet insurance, 24/7 support, and daily photo updates
  74. 74. Available in 12 countries, BlaBlaCar uses social profiles to connect people who want to share a longer-distance car ride
  75. 75. Friendsurance uses social networking to join people together in order to qualify for lower group premiums from insurance companies
  76. 76. 6. Brands will sell experiences Image credit: PoL Ubeda Hervàs@flickr.com
  77. 77. Birchbox (“Discover your next everything”) introduces users to new products through a monthly sampling program
  78. 78. Fenumbra connects buyers to “gallery quality” art and donates a portion of the purchase price to charity
  79. 79. Naked Wines—a crowdfunding e-retailer—provides a fun and social way for a new generation of wine drinkers to learn, explore, and connect
  80. 80. 7. Brands will develop new relationships with consumers Image credit: Regina Holliday@flickr.com
  81. 81. This past winter, Walgreens partnered with TaskRabbit to home-deliver OTC cold and flu meds Image credit:  All News Retail
  82. 82. To better compete with Amazon, Walmart is said to be considering hiring its own customers to make same-day deliveries of online orders
  83. 83. Target is collaborating with three top Pinterest users on party-themed collections to be sold in its stores and online
  84. 84. U-Haul Investors Club invites individuals to invest in a vehicle via crowdfunding and receive a share of income when the truck is rented
  85. 85. 8. Brands will champion individual creators and small businesses Image credit: Pedro Ribeiro Simões@flickr.com
  86. 86. Through its Makers Project, Levi’s works with international artisans to create and sell unique, handcrafted items
  87. 87. TOMS Marketplace, an offshoot of TOMS shoes, is an online platform through which 30 carefully selected “companies with a social mission” sell their goods
  88. 88. Through its Lincoln Makers program, Lincoln offers car buyers access to exclusive offers from the “masters of American craft, design and service”
  89. 89. GE has opened up GE Garages, free workspaces equipped with 3-D printers, laser cutters, and other tools in which maker groups can collaborate and invent
  90. 90. Department store Nordstrom has teamed with online retailer Etsy to sell handmade and vintage goods from emerging artists and designers
  91. 91. CLOSING THOUGHTS For many people, consumption has become a chore and an  emotional burden—but something they still must do.  As marketers, it is our role to re‐inject joy into the equation  by… • Ensuring that people have reason to feel good about what  they buy—including the social and environment impact • Finding sensible solutions to problems of waste and  excess • Working with consumers rather than dazzling them with  meaningless gimmicks and fleeting feelings of  gratification • Helping people consume in a way that is better for us all
  92. 92. For more insights from Havas Worldwide research—and to download the “New Consumer and the Sharing Economy” white paper or infographic—visit http://www.prosumer-report.com/blog/ And follow us on Twitter (@prosumer_report)