Is ownership of brands passe? A new model of temporary usage for durable goods
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Published version
Author(s)
Kerschbaumer, RH
Foscht, T
Eisingerich, Andreas
Type
Journal Article
Abstract
Purpose
The trend toward subscription economy accelerated the rise of access-based consumption models for durable consumer goods, replacing individual ownership with subscription contracts. At the same time, disruptive platform businesses have arisen in several consumer markets, bypassing traditional value chains while growing through network effects. In a conceptual approach, the authors address the future market for durable consumer goods in light of developments toward access-based consumption, subscription models and platform business models.
Design/methodology/approach
In a conceptual approach, the authors apply a scenario analysis following the Framework Foresight method and address trends, constants, plans and projections shaping the future market of subscriptions for durable goods. The authors create a baseline scenario and two alternative scenarios for the future of consumer durables and thereby discuss platform growth stages and implications for manufacturer brands.
Findings
The rising market power of platform companies leads to a baseline scenario where these platforms enter the market of subscriptions for durable goods. Alternative scenario 1 addresses the successful market entry of new platform businesses. In contrast, alternative scenario 2 describes the rise of manufacturer brand platforms.
Originality/value
This conceptual research enriches the discussion of access-based business models by creating scenarios depicting possible future developments. Moreover, it adds to the increasing focus on platform business models and thereby addresses the role of traditional manufacturer brands in markets for durable consumer goods subscriptions.
The trend toward subscription economy accelerated the rise of access-based consumption models for durable consumer goods, replacing individual ownership with subscription contracts. At the same time, disruptive platform businesses have arisen in several consumer markets, bypassing traditional value chains while growing through network effects. In a conceptual approach, the authors address the future market for durable consumer goods in light of developments toward access-based consumption, subscription models and platform business models.
Design/methodology/approach
In a conceptual approach, the authors apply a scenario analysis following the Framework Foresight method and address trends, constants, plans and projections shaping the future market of subscriptions for durable goods. The authors create a baseline scenario and two alternative scenarios for the future of consumer durables and thereby discuss platform growth stages and implications for manufacturer brands.
Findings
The rising market power of platform companies leads to a baseline scenario where these platforms enter the market of subscriptions for durable goods. Alternative scenario 1 addresses the successful market entry of new platform businesses. In contrast, alternative scenario 2 describes the rise of manufacturer brand platforms.
Originality/value
This conceptual research enriches the discussion of access-based business models by creating scenarios depicting possible future developments. Moreover, it adds to the increasing focus on platform business models and thereby addresses the role of traditional manufacturer brands in markets for durable consumer goods subscriptions.
Date Issued
2024-07-23
Date Acceptance
2023-09-08
Citation
Journal of Business Strategy, 2024, 45 (5), pp.305-313
ISSN
0164-5382
Publisher
Emerald
Start Page
305
End Page
313
Journal / Book Title
Journal of Business Strategy
Volume
45
Issue
5
Copyright Statement
© Rene Hubert Kerschbaumer,
Thomas Foscht and Andreas B.
Eisingerich. Published by
Emerald Publishing Limited.
This article is published under
the Creative Commons
Attribution (CC BY 4.0) licence.
Anyone may reproduce,
distribute, translate and create
derivative works of this article
(for both commercial and
non-commercial purposes),
subject to full attribution to the
original publication and
authors. The full terms of this
licence may be seen at http://
creativecommons.org/licences/
by/4.0/legalcode
Thomas Foscht and Andreas B.
Eisingerich. Published by
Emerald Publishing Limited.
This article is published under
the Creative Commons
Attribution (CC BY 4.0) licence.
Anyone may reproduce,
distribute, translate and create
derivative works of this article
(for both commercial and
non-commercial purposes),
subject to full attribution to the
original publication and
authors. The full terms of this
licence may be seen at http://
creativecommons.org/licences/
by/4.0/legalcode
License URL
Identifier
https://www.emerald.com/insight/content/doi/10.1108/JBS-02-2023-0032/full/html
Publication Status
Published
Date Publish Online
2023-09-26