According to the article (‘Can product manufacturers benefit from the sharing economy?’ <!–
by Hannah Furlong) consumers buy less when they are provided option of sharing.
Manufacturers can benefit if they strategically design pricing and increase quality to meet customers’ needs. Research found that sharing of products that have low marginal costs can result in decreasing revenue for companies who manufacture those products since number of customers will be reduced.
For high cost products, manufacturers can charge higher prices because increased perceived value due to sharing economy business model. Manufacturers can make more efficient and durable goods to capture these opportunities.
Can product manufacturers effectively realize this opportunity? What manufacturers should prepare for these changes? What industries can be the most benefited?
Source: sustainablebrands.com, Can product manufacturers benefit from the sharing economy? by Hannah Furlong, Sep 28, 2016