Let me check, does it really fit in my current living room?

3

October

2016

5/5 (1)

Rooomy, it might sound unfamiliar yet for most of you. However, with emphasis on yet. Rooomy is an application developed by Loft-NedSense Inc., which connects home buyers with furnishing retailers and real estate, all within a 3D virtual space (Rooomy, 2016). You might think, there is nothing new under the sun. That’s why I am writing this blog about it. The emerging technology Rooomy works with, is likely to disrupt the market and way of selling products by furnishing retailers.

 

First of all, let’s explain how Rooomy works and the technology behind it. Rooomy enables consumers to transform a picture of their (for example) living room into a 3D picture. All details, like a painting on the wall or a lamp in the corner of the room, are added to the 3D picture, as you can see in the illustration below (Rooomy, 2016). Within the application, consumers are able to delete objects out of their 3D room. Now comes the interesting part. Loft has contracts with a couple of furnishing retailers, like Baker Furniture and Birch Lane (Rooomy application, 2016). Consumers are able to browse through their catalogue, and select pieces of furniture they think are interesting. Rooomy places those pieces into the 3D room of the consumer, so they can see how the new sofa, chair, lamp or whatever other pieces of furniture fit in their current (living) room. People are able to find out how a certain new piece of furniture will look like in their room, together with the current stuff that’s in there.

 

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An advantage of Rooomy is that consumers will earlier found out if they really like the new stuff they want to buy. It will decrease shipping costs, since less products will be sent back to the retailer. While the 3D furniture catalogue was still relatively small at 500 pieces in the first half of 2015, Loft-NedSense currently has a database with over 6000 pieces of furniture (Tepper, 2015) (NedSense, 2015).

Another advantage for consumers is the fact that online shopping will be even more expanded, since buying furniture online has been made easier by Rooomy. It takes the need of visiting a furniture retailer away.

 

I am very curious about what you guys think of this new technology. Do you think it will indeed disrupt this market and the way of buying furniture will change? Or, do you think the need of seeing the new piece of furniture with your own eyes before buying it, will be too strong and physical stores will stay too important?

 

 

Rooomy Application. (2016).

NedSense. (2015). Annual Report.

Rooomy. (2016). About – Rooomy. Retrieved in 2016, from https://rooomy.com/about

Tepper, F. (2015). Rooomy lets you Decorate your room in 3D. Tech Crunch.

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Sharing is the new buying

22

September

2016

5/5 (1)

Sharing is the new buying. Increasing costs (maintenance, insurances) of owning expensive goods might push consumers towards choosing to share these items and participate in the emerging sharing economy (The Economist, 2013). This shift in consumer behaviour is especially seen in the car industry. In 2006 the number of vehicles in the global car sharing market was 11,500. In 8 years, this amount grew with about 800% to a total number of 92,200 (Statista, 2016). Ever since the emerge of car sharing, many companies were found and saw big opportunities.

 

One of the most popular and largest car sharing companies worldwide is Car2Go, with over one million customers (PR Newswire, 2014). They are currently operating in nine countries. Their business model is quite simple. As a consumer, you have to register at their website and visit one of their offices once to validate your driver license. Afterwards you download the app, which allows you to see and book all available cars in the city (Car2Go, 2016). With a card you will receive at the office, you can open the cars and start the engine. When the customer arrives at his destination, the car can be parked at any public parking lot and you stop the use of it by using your card again. You pay a fixed price per minute, which remains the same, regardless the time.

 

In my opinion, the biggest advantage of companies like Car2Go, is the fact you don’t have to own a car by yourself anymore. Particularly for people that don’t often use a car, it’s a much cheaper solution. Another advantage is the expected decrease in carbon dioxide emission. People that exchange their own car for a car sharing solution, are likely to have a lower emission (The Financialist, 2015). In the long-term, in my opinion it might even result in a lower car production rate, although no clear statistics and facts are published about this statement.

 

Although car sharing could save people money, the reason of availability might withhold them of doing it. Common complaint is a shortage of available cars nearby (Autoweek, 2014). To solve this problem, the number of cars should be increased. Matter of course, this can only be done when the number of paying customers also increases. The causality between these two is a hard one.

 

I would recommend Car2Go to raise brand awareness and demonstrate consumers the possibilities with car sharing. Before they invest in new cars, they should make sure these cars will be used enough to make it profitable.

I am interested in your opinions in the opportunities for Car2Go and other car sharing companies. What do you think is the best way for these companies to grow? Should their (information) strategy be improved?

 

 

AutoWeek. (2014). Car Sharing nog niet echt populair. Retrieved 2016, from http://www.autoweek.nl/nieuws/car-sharing-nog-niet-erg-populair/

Car2Go. (2016). Hop in and Drive. Retrieved 2016, from https://www.car2go.com/NL/en/#82523

PR Newswire. (2014). Car2go Reaches 1,000,000 Members, Marking Its Spot As The Largest Carsharing Company In The World. Retrieved 2016, from http://www.prnewswire.com/news-releases/car2go-reaches-1000000-members-marking-its-spot-as-the-largest-carsharing-company-in-the-world-300007578.html

Statista. (2016). Car sharing: Number of vehicles worldwide 2006-2014. Retrieved 2016, from https://www.statista.com/statistics/415322/car-sharing-number-of-vehicles-worlwide/

The Economist. (2013). The Rise of the Sharing Economy. Retrieved 2016, from http://www.economist.com/news/leaders/21573104-internet-everything-hire-rise-sharing-economy

The Financialist. (2015). Sharing is the new Buying. Retrieved 2016, from https://www.thefinancialist.com/sharing-is-the-new-buying/

 

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