УДК 33

Development of marketing in the concept of sharing economy

Омельянюк Ксения Дмитриевна – студентка факультета экономики и бизнеса Финансового университета при Правительстве РФ

Abstract: The obsolescence of the concept of capitalism as the fundamental market relations throughout the world has led to the emergence of a new concept of the sharing economy that meets the needs of society. The most innovative companies operating in consumer markets today use or are gradually transitioning to business concepts of the sharing economy. New principles of doing business, where the basis is intangible values, increases the role of marketing in them. At the same time, marketing tools themselves are undergoing changes. Thus, the study of marketing in the sharing economy is of particular interest.

Keywords: marketing in sharing-economy, new marketing concept, subscription business model.

The capitalist system is founded on the principles of private property ownership, commodity exchange, and wage labor. However, as automation becomes increasingly prevalent, the concept of wage labor is gradually eroding, leading to significant transformations in the dynamics of commodity exchange and the diminishing relevance of private property. The challenges lie in earning sustainable income from private property, given the declining purchasing power of the general population. Automation is an inevitable process within a market economy as the integration of robots and advanced technologies allows for cost reduction and heightened efficiency. Klaus Schwab aptly observes that the Fourth Industrial Revolution necessitates extensive global political, social, and economic changes. This revolution entails a shift towards a service-oriented economy, where products are transformed into services, prioritizing durability and recyclability. This facilitates rapid consumption of materials while ensuring their seamless conversion into new products, emphasizing sustainability and resource efficiency. Significant elements of this evolving economic paradigm can already be witnessed in the sharing economy or on-demand economy. These models optimize the utilization of available resources through the application of innovative information technology. For example, ride-sharing platforms like BlaBlaCar have revolutionized the transportation market by connecting drivers and passengers without the need for vehicle ownership. Similarly, Airbnb provides an alternative accommodation option by enabling individuals to rent out their spare rooms or apartments, offering a cost-effective solution compared to traditional hotels. This emerging business approach, often referred to as "uberization" after Uber's disruptive impact on the taxi industry, fosters a trust-based economy. It effectively brings together supply and demand, facilitating interactions between participants and offering consumers a diverse range of products and services. By tapping into underutilized resources and enabling their efficient utilization, this model encourages individuals to recognize their potential as suppliers, thereby creating value from previously untapped assets. These new economic dynamics promote collaborative consumption, resource optimization, and alternative access to goods and services. They redefine traditional notions of consumption and encourage individuals to actively participate as suppliers, unlocking the latent potential of idle resources. Ultimately, the principles underpinning the trust economy contribute to a more sustainable and efficient use of available assets, driving economic growth and enhancing societal well-being.

The sharing economy has brought about a significant change in marketing. In the past, marketing was focused on promoting products and services to consumers. However, in the sharing economy, marketing has shifted to promoting experiences and building trust. Companies in the sharing economy rely heavily on user-generated content and word-of-mouth marketing. They also invest in building a strong brand reputation and creating a community of loyal customers. Additionally, the use of technology and data analytics has allowed sharing economy companies to personalize their marketing efforts and offer targeted promotions to their customers. Overall, the sharing economy has transformed marketing from a traditional, product-focused approach to a more experiential and community-driven approach. There are some crucial changes in marketing tools and approaches, which are described below.

Subscription monetization

Pricing and monetization, being an integral part of marketing, have undergone changes under the influence of the sharing economy. In the past, companies primarily relied on selling products or services to generate revenue. However, in the sharing economy, companies generate revenue by facilitating transactions between users. They typically take a commission or fee from each transaction, rather than selling products themselves. There has also been a trend towards subscription-based models in the sharing economy, where users pay a monthly or annual fee for access to a platform or service. This model is beneficial for users who may use the platform frequently, and it provides a more predictable revenue stream for companies. In this case, the pricing policy of the company is aimed at retaining the client and providing a "trial" or "free" period with a reduced cost of the so-called subscription. The goal of marketing is to retain the customer through the best possible price and increase satisfaction with the user experience. As mentioned earlier, the sharing economy is associated primarily with the development of technology and mobile applications. Subscriptions in the applications of companies have become a strong basis for the development of the economy on demand. It is convenient for people to pay once in a certain period and freely use whether it be content or service or visible products. We can see this especially clearly in the consumption of the film industry. Platforms such as Netflix and HBO have taught people around the world not to buy content in the form of movies and series forever, but to access it through a subscription. By subscribing to multiple platforms, the consumer gets access to a huge share of the content. As a result, businesses "on subscriptions" have much greater growth than businesses in which, when a transaction is made, the product becomes the property of the consumer. In the US market from 2012 to 2020 the growth of businesses using subscriptions  became 437%.

Exploring the Russian market, players are also identified that have distinctive features from Western companies. The sharing economy began to gain significant popularity in Russia and the CIS countries later than the United States. However, over the past 5 years, companies in this type of economy have shown extremely high growth. For example, in 2019, the growth of the sharing economy in Russia amounted to 50%. And in 2020, 39% and the volume of transactions from sharing services amounted to 1.07 trillion rubles. The decline in growth in 2020 is primarily due to the coronovirus pandemic, due to which housing, office and car sharing services were most affected. One of the largest players is the sharing of things and scooters. Most of these services offer a subscription to their applications to provide a set of services and unique advantageous offers. A striking example on the Russian market is Yandex, which has now created a full-fledged sharing eco-system. Initially, the company was exclusively a search engine. Over the past five years, the company's quarterly profit has grown by 356%. Such growth was possible due to the creation, acquisition and development of start-ups in various fields and the application of a promising business model of the sharing economy to them. So today, the ecosystem includes a taxi aggregator, a music streaming service, an online cinema, scooter sharing, a food delivery service, and a marketplace. All of them are connected by a subscription, which includes services of various services at different rates. Thanks to the use of the sharing business model and the active implementation of the subscription system, the company has become a key player in all the markets present. Thus, the introduction of a subscription system as part of a business model and a marketing communication system with a client can become extremely promising for businesses in various industries.

Crucial communications

Marketing communication is crucial for sharing economy companies to build trust and credibility with their users. Sharing economy companies rely heavily on user-generated content, such as reviews and ratings, to promote their services and build a community of loyal users. Therefore, it's important for companies to encourage user-generated content and actively engage with their users.

Sharing economy companies also use social media and digital marketing to reach a wider audience and promote their services. They may use targeted advertising to reach specific demographics or geographic regions. Additionally, some sharing economy companies partner with influencers or brand ambassadors to promote their services and reach a wider audience.

Building a strong brand reputation is also essential for sharing economy companies. They may invest in building a recognizable brand identity and creating a positive association with their services. This can be achieved through consistent branding across all communication channels, such as social media, email marketing, and website design.

Finally, sharing economy companies may use referral marketing to encourage users to invite their friends and family to join the platform.  This can be an effective way to build a community of loyal users and increase the platform's user base.

Overall, effective marketing communication is key for sharing economy companies to build trust, promote their services, and create a community of loyal users. When making a purchase decision when purchasing a product, the consumer often evaluates the objective qualities of the product to a greater extent, while when making sharing purchases and borrowing something, consumers are more likely to make decisions based on emotional attachment. Through the marketing communication tools companies strive to show the uniqueness of the service provided and its competitive advantage, since the difference between companies and brands of the same type of product or service is intangible. That is why the main emphasis in marketing is on creating the necessary image in the eyes of consumers and build strong ties with them.

References

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4. Gavrikova V. Yandex pribavyl 400% za 5 let – RBC Investiciyi, 2020. URL: https://quote.rbc.ru/news/article/5fa3ded99a79476f69caf4c1 [in Russian].
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