The current generation of 20- and 30-somethings is causing an economic shift toward an as yet unseen state that is now being labeled the sharing economy. Following the 2008 recession, many of this age group no longer see the point in buying a $20,000 car just to have it sit parked for the vast majority of its life. Instead of dropping this purchase altogether, however, this generation has banded together to share their already limited resources for the greater good.
The Rise of the Sharing Econonmy
Probably the most major evolution of this shared economy came with a new business model gaining traction. As people were pressed to think creatively about making money, “creative things” began to happen. Companies such as Airbnb and Uber allowed consumers to take advantage of their current assets, transforming a spare room in a house or a car ride into a way to make a profit. Nowadays, there is barely anything that consumer’s don’t share or rent out.
Pop Up Shops
In addition, retail space has seen an extremely similar situation. Instead of making long-term commitments and taking unnecessary high risks, retail companies embrace the idea of “trying out” and use this new flexibility in renting retail space. It’s proven to be more economical to set up a temporary place of business, sell a set number of product to see whether a concept works or not. This means less overhead, resulting in more profit.