This PSFK guide is a deep-dive into shared and fractional ownership for brands and retailers looking to understand the dynamics of this rapidly emerging paradigm.
For years, the phrase “sharing economy” has been paving the way to fractional ownership, slowly creating opportunities for consumers to buy things as part of a shared group. Millennials who were integral to the shared-everything boom of the 2010s are now open to ownership and making investments, but some are still struggling to make large financial commitments. The new fractional economic system does not only democratize ownership and serve as an investment tool, it has a much more far-reaching impact. Along with the unfolding NFT market and introduction of web3 technologies, consumers are embracing new frontiers: partial ownership of assets, real estate co-owning, co-deciding, co-making and brand-backing with shares. Brands can leverage this change by allowing consumers to become brand stakeholders and partners who actively participate in co-creation and decision-making, while at the same time mapping out – along with the consumers – what modern a fractional ownership program really offers.
In this report, PSFK researchers explore the opportunities that brands and retailers can leverage as fractional ownership enters the mass-market. Supported by best-in-class examples of innovation, understand how leaders are tapping into co-ownership of fractional assets to enable democratic access to products or lifestyles, sell products, create experiences, engage consumers and build loyalty.
This store as service report was developed by the same PSFK research department that since 2004 has provided trends-led innovation consulting advice to Apple, BMW, Facebook/Meta, Google, Microsoft, Samsung and Volkswagen.
At its core, fractional ownership is about accessibility. Low-net-worth individuals, who might be excluded from certain opportunities, items or lifestyles, can now co-own a fraction of an expensive asset and experience it as if it were their own. Modern brands that include fractional programs can now reach new, previously untapped markets and broaden their customer audience. Along with fractionalization, some brands have begun to explore services around the management of assets, from making the ownership...Everyday Stakeholders
Everyday stakeholding comes with generational shifts. Knowing that younger generations are open to new types of investment to secure their future financially, brands have become modern educators enabling young entrepreneurs – even Gen Alpha – to invest in their future and support the companies they value. Retail brands, however, are tapping into the interest of youth and the everyday stakeholding with rewards in brand shares during regular shopping, so that the shares enter customers' accounts...Experiential Fractions
While fractional ownership has recently gained popularity as a form of investment, it is about more than just investing and owning – it comes with an exclusive experience. Consumers are keen to be brought on board with incentives such as co-creation privileges and early access to exclusive products or content. Brands that offer emotional or sentiment-based rewards for stakeholding can tighten the relationship with consumers and maximize brand loyalty. With fractional ownership, brands leverage social...
Starbucks is designing a digital community of global brand fans by leveraging web3 technologies to create a business-adjacent model of shared-loyalty and beneficial ownership.eBay Vault is the Future of Ownership and Collectible Investing BusyKid Allows Gen Alpha to Buy Fractional Shares in Companies
Chore-setting app BusyKid is aiming to make financial literacy accessible for young children and teens by giving them real-world experience managing the money they earn from chores. The app offers fractional shares from thousands of companies, including Amazon, Apple, Disney, Meta, and Google.