Rent, Own or Borrow: The Sharing Economy for Millennials
Given the rise of the Sharing Economy through companies like Airbnb and Zipcar, mindswarms wanted to uncover Millennials’ attitudes and brand relationships within this new economy. Would they have similar attitudes to their parents? Or, has the omnipresence of tech changed things? What we found challenges the very definition of the American Dream
Research Objective
To understand Millennials’ attitudes about the Sharing Economy versus their parents.
Target Audience
National US sample
17 states
24 cities
Ages 19 – 34
Even Male/Female ratio
> 40% had HH incomes $100K+
Mix of ethnicities and socioeconomic backgrounds
We Learned
- Millennials feel that the Sharing Economy has enabled an evolution of the American Dream for their generation
My Parents’ American Dream:
- Success through individual effort
- Work hard to improve life standing
- Life-long accumulation of “my things”
My American Dream:
- Success through a combination of individual and collaborative effort
- Work smart, always open to new opportunities and experiences to enhance life
- Enjoying “my access” to things and experiences when I want/need them
2. There are 3 key factors shaping the strong connection between Millennials & “Sharing” brands & fueling the Sharing Economy
1. Sharing brands enable a new definition of prosperity for Millennials within a sluggish economy.
2. Millennials’ comfort with technology and their trust of social media allows them to leverage Sharing brand connections/benefits.
3. Sharing brands provide Millennials with a sense of savviness and opportunity.
Sharing brands provide more attainable possibilities for prosperity within this economy
- Millennials recognize that their parents’ definition of success and prosperity isn’t as possible for their generation.
- They see the sharing economy as a way for them to achieve some of their goals within their “American Dream.”
- Sharing brands not only provide access, but also can alleviate the worry associated with not having enough money for purchase.
Millennials’ trust of online brands and relationships allows them to more fully enjoy the benefits
- Online experience and trust allows Millennials to be more:
- experimental, excited to try new brands and services that they may have little or no previous history with
- open, willing to enter into a rental or share relationship with a stranger
- fearless, able to look at the possibilities associated with outsourcing a task or embarking on a new adventure based on an online reputation
- spontaneous, able to enjoy share relationships when they want and not be bogged down with longer-term commitments
- fulfilled, by the reward of the experience
Sharing brands provide Millennials with opportunities to feel they are “working smarter”
Although some did admit that their parents view “sharing” as a way for them to dodge adult responsibilities, Millennials overall recognize the potential that sharing brands offer them:
- profitability, able to better leverage current “assets” for extra income
- frugality, able to reduce expenses associated with owning
- “waste reduction,” able to avoid unnecessary duplication and/or over accumulation of “stuff”
- time/resource leverage, able to better leverage their own time, skills and “assets”
Sharing brands are truly shaping the lives of Millennials – providing them with a sense of opportunity and re-defining prosperity for their generation.
- Millennials feel certain that technology will continue to fuel the growth of strong Sharing Brands and the Sharing Economy.
Conclusions & Implications
- As the American Dream shifts for Millennials within a challenging economy, the sharing economy, at the most basic level, allows them access to products and services that they may not otherwise be able to afford.
- At a higher level, sharing brands support Millennials’ desire for convenience, flexibility and unique experiences. Millennials are forming strong, lasting relationships with sharing brands, relationships that are as relevant and meaningful to their lives as traditional brands.
- The trust that Millennials have built through their social/online experiences allows them to be fearless and open to new sharing brands.
- Although some Millennials did admit that their ultimate desire for ownership may not be different than their parents when resources allow, the sharing economy does allow them to be fulfilled – as the reward of the experience often is as valuable as owning it.
- Millennials’ positive sharing experiences can be the bridge for trial within their parents’ “social network” and will likely help build trust for these older generations.
- A broader positioning for “Share Economy brands” beyond simple cost-savings will connect with Baby Boomers, Gen Xers and a maturing Millennial generation. Sharing brands have the ability to deliver both rational and emotional benefits, allowing consumers to feel frugal, savvy, resourceful and adventurous.
