The traditional approach for most businesses has been to: create a product/service, sell it, end of story. This has worked well up until recently. But now many consumers are looking for a change. There’s a couple of good reasons for this:
Financial - The GFC has bred distrust of old companies and has also forced or at least encouraged many people to tighten the belts, downsize and re-examine what is actually important to them. Many are actually finding that they prefer simpler lives, with less stuff and want invest more in the things that actually make them happy such as their friends, family, health, traveling and new experiences.
Environmental - Growing awareness of environmental issues is causing people to question the consequences of our lifestyles - where do these products come from? What does it cost to produce them? What are the unintended side-effects of our production system? Where do they go once they’re no longer useful or wanted? It is an inescapable fact that we live on a planet with finite resources and need to find a better way of doing business.
The solution is a model based on sharing that Lisa Gansky calls ‘The Mesh’. The mesh is a new business model that is taking the world by storm. It is about giving consumers more tools, choices and information. It is about sharing products and services - giving people superior access without the burden and expense of ownership.
Mesh businesses work by leveraging the following growing trends:
Urbanisation - The increased population density caused by urbanisation makes sharing networks possible. Once people are living nearby one another in large numbers, sharing of certain items such as cars and tools can become practical.
Use of Data & Social Media - Whereas a buy/sell model encompasses one transaction, a sharing model inherently creates a conversation between providers and customers as they need to continually interact to do business. Every time a product or service is rented, leased, or borrowed the company can collect data about the transaction. This lets them get to know the customer better and then use that data they have compiled to personalise the offerings for the customer for next time. These conversations are happening in real life but also online with the explosion of social media, which provides an effective platform but also another point for data collection and further personalisation. Conversations over social media tend to be much more genuine and human, as opposed to the traditional scripted press release/sell approach.
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Mobile - the Internet started by moving data around but now with widespread adoption of smartphones it is also moving around physical goods. Mesh companies are leveraging this trend to enable their customers to reserve cars, bikes, homes, meals and more - on the go.
Examples of mesh businesses are popping up everywhere. Here are a few to check out if you’re interested!
Carsharing - www.zipcar.com
Entertainment - www.netflix.com
Kids clothes swap - www.thredup.com
Collaborative funding - www.kickstarter.com
Group discounts - www.groupon.com
And there are plenty more here - http://meshing.it/
Geordie - rentoid team.
And it’s so easy. Rent out your old books from last semester then use that cash to pay for the rental of this semester’s books… It’s the perfect solution.
