With more than 22.4 million consumers each year and $57.6 billion in spending, the on-demand economy is alive and kicking it – hard.
From transportation (e.g. Uber, Lyft), accommodation (e.g. Airbnb, Onefinestay), delivery (e.g. UberRush, Instacart) to shopping (e.g. Ebay, Etsy), on-demand, app-based businesses are causing disruptions in multiple industries across verticals.
They’re challenging industry incumbents to change their mindset and transform or find themselves disrupted.
Some of the leading on-demand companies out there
Consumers don’t hesitate to embrace these businesses, as they are doing a much better job at using technology to make services more accessible with
- slicker interfaces
- added convenience where it really matters
- cognitive ease
- and fast, simple, and efficient experiences.
This trend is not that surprising. Consumers will always look for that something new, which lets them do things better and faster. Winners will be those that innovate.
It is similar to the evolution of music distribution from LPs in the 1960s, to vinyl in the 1970s, cassettes in the 1980s, CDs in the 1990s and to digital music today, which allows streaming music from the internet. The need and demand to buy and listen to music never changed; it’s innovation and technology along with disruptive products and new business models that made the delivery faster and more efficient for consumers causing previous formats to lose share and fade.
The secret sauce of on-demand businesses however, is not the technology alone, as Glenn Laumeister, CEO of CoachMarket, a freelancer marketplace, notes.
“It is the single-minded obsessive focus on solving one big universal problem for the buyers, and removing that friction.”
Marketplaces Transforming Retail
The industry in which the on-demand model will have its biggest impact is the retail sector. Online Marketplaces suit convenience-focused modern shoppers who are now able to receive instant access to a myriad of products, literally in their pocket.
Definition: An online marketplace (or online e-commerce marketplace) is a type of e-commerce site where product or service information is provided by multiple third parties, whereas transactions are processed by the marketplace operator. (Wikipedia)
Recognized as part-revolution, part-evolution, online marketplaces are already transforming the entire retail sector as one of the most disruptive forces in eCommerce. Marketplaces, such as Etsy and eBay, already draw in $36 billion each year.
In 2017, experts believe that major retailers will continue to push their way into the marketplace format, with Amazon becoming a majority marketplace ahead of eBay in terms of sales. Additionally, marketplaces may begin to enhance their services, to make themselves even more attractive to sellers and buyers. The marketplace format allows retailers to rapidly expand their product offer by inviting third-party sellers to sell directly on their site.
Adrien Nussenbaum, CEO of Mirakl, a Marketplace solution provider, even goes as far as to say that it’s impossible for any retailer to survive in the digital age without a marketplace approach.
So, what does this mean for brands and traditional retailers? The pressure is on. Adapt or die out.
The emerging trend of marketplaces is placing serious strain on the economic Go to the full article.
Source:: Business 2 Community