Narendra Modi launches plans for Startups, and Sharing Economy is creeping into the economic scenario. Isn't it a surprising gift that ensures the success track for budding business owners in India?
India is on the cusp of entering a new era where the Millennials are intelligent consumers of any products and services offered online or offline, and so they are claimed to have an increasing impact on any upcoming business in India.
Sharing Economy in India
The introduction of rent and Share websites have opened the gate of the Share Economy which is heading aggressively to wash away the traditional concept of possession by replacing it with the concept of Rent and Save.
French start-up BlaBla Car – ride-share community being the pioneer to introduce share economy in India deteriorating public transport system globally.
Startups in India are now eyeing such opportunities. The footprints of BlaBla car has been carried on well by
OLX and ebay, where the customers are buying pre-owned goods.
OLA, ZOOMCAR, UBER, where customers are opting for rental cars rather than taking the pain of owning them.
Airbnb, where homestays are a better option rather than staying at chains of hotel.
Faircent and LenDenClub where customers had to go through a series of formalities and lengthy procedure of opting a loan, they are now approaching these sites for a safe and secured borrow.
The offerings hit the question: why spend even hundreds, if not thousands when you can share and save money and valuable space in the process?
Why We Predict Success of Share Economy in India?
The Sharing Economy has transformed the way of retail in 2015 in the U.S. The sharing economy worth $26 billion will be a disruptive force in the years to come. In the U.S., 39% of internet users have used Sharing Economy in 2014 was up by 12% and soared to 51% in 2015 and the trend is on a rise.
Of an Indian Counterpart, our Purchasing Power Parity (PPP) is 10% more than that of U.S. Our population density is 10X of that of the US. 65% population of India is Millennials and with the increase of urban job opportunity, these Millennials are settling down in metropolitan cities. So by 2025, 65% population will accommodate themselves in leading cities of our country. The size of used good market in India is surging at Rs.1.5 Lakh crore. These factors will participate positively and smoothen the success path in the growth of Share Economy in India.
Sharing Econmony in Retail Industry
Despite these trends, it is believed that the increasing prominence of the sharing economy is unlikely to have any major impact on traditional brick-and-mortar shops.
However, you can imagine a scenario when customers are even pre-owning personal items like clothing. This will help the retailers reach the vein and offer them in store. But in this case, the customers need to ensure the proper fit and the quality, for which they must step into the store and choose the product of their need.
The startup retailers can take the example of Rent The Runway who have successfully recognized the need and so rolled out the brick-and-mortar store location where the customers can try out their selected items rather than getting it delivered and end up with disappointed at the eleventh hour.
In addition to this, the business has also offered its shoppers the opportunity of buying an item once it the seller decides to remove the merchandise from renting further.
This allows the shopper to buy her loved good at a much lower price which was previously not affordable.
These are some of the business planning that the startup can take up to rule the industry in near future. Retailers are hopeful to see growth by changing needs and demographics of the day.
India, once developing country is unlocking the way to success for the startup business. Business aspirants should grab the opportunity and delve into the right track that will bring them higher ROI and offer an omnichannel marketing platform for Gen Y buyers.