Will the sharing economy have much impact on Thai business?

It is becoming such a significant movement globally to the point of being coined one of 2015’s biggest global consumer trends by Euromonitor, the research giant.
With this much hope for the sharing economy around the world, let’s see what it is all about, how it has been utilised and how it could play out in the future, domestically.
The idea behind the sharing economy is quite easy to understand. The concept is to rent or borrow someone else’s asset, especially when it is not being used or fully utilised at the given time, all in order to profit both parties: the owner and the renter of the asset.
There are two main catalysts responsible for the rise of the sharing economy. The first is none other than the birth of social networking, where peer-to-peer connections are faster and more accessible than ever, while the second is the recent global economic downturn.
The first catalyst marks the evolution of human nature. It has always been okay to a certain extent to borrow things from friends or family, because there is an element of trust between both parties.
A father can let his daughter borrow his car because he trusts her to be responsible, or someone can let a close friend stay over in an unused room in a house because the owner trusts them to be a proper guest.
However, with the emergence and penetration of social media, peer-to-peer connections are no longer limited to close friends and family members. Social networking expands the level of acquaintance, enabling the act of borrowing things beyond borders.
The second catalyst – the global economic downturn – meant consumers worldwide started looking for more ways to gain income and, as a result, sharing their assets to generate extra value seems to be picking up.
To name a few success cases, global exemplars profiting from sharing-economy concepts are AirBnB and UberX. Both have made their names heard around Thailand through various media and by word of mouth in the past few months – and each of their business models is quite simple.
AirBnB lets an owner rent out an unused room for lodging, replacing hotel rates for renters, while UberX allows car owners to convert their everyday rides into limousine rides for other passengers.
Though UberX faced a few local laws causing it to halt its operations in Thailand, the concept of the sharing economy seems to be travelling from the global level to closer to home.
Apart from these successes, there are many other sharing-economy-based businesses that are gaining popularity in Western markets.
For example, Lending Club is a peer-to-peer-based loan business operating in the United States, whereby investors and peers let other peers with a good credit history borrow money at an interest rate proposed and agreed upon by both parties.
Sensing the rise of these sharing businesses, other business operators are looking for ways to both emulate and join in the success.
For instance, Lending Club was a threat to banks, as they operate in a similar line of business. However, instead of finding a way to fight smaller players like Lending Club, banks are now treating the club as a portal through which they themselves can provide loans to those who are seeking credit.

Thai prospects
After reading about all of these global cases, will this concept change the way we work in Thailand? Of course it will.
Thailand has already seen the early stage of the sharing economy at play. Thais have witnessed the short rise of UberX, participated in renting out via AirBnB, and even have something of their own with the sharing aspect in place, such as the Bangkok Bicycle public service located right in the business district of the capital.
The key is to learn how to think like a sharer, who knows how to fully utilise an unused or less-used asset without any need to establish a new business or company – and with a pure focus on peer-to-peer sharing.
In the near future, if you were a marketer for a property business, why not utilise unsold space or rooms for short-term rental purposes?
Or if you were working for an automotive company, why not play around with the idea of renting out your used car stock for those who just need vehicles on special occasions?
This concept might even pave the way for small and medium-sized enterprises in Thailand to find new business approaches through peer-to-peer sharing, and to prosper from it.
These are just quick pictures of how to think like a sharer, and many more possibilities are waiting to be explored with the sharing-economy concept. If you are slow to adapt, there will definitely be consequences. Don’t allow your business to fall behind.
The world is sharing – when will you?

Maas Virajoti is group head, strategy and innovation, IPG Mediabrands Thailand.