Insights and Business Advice
The On-Demand Economy Shift
Have you heard of the On-demand Economy? Some people call it the App Economy.
Either way, you’re most likely part of it as a consumer (knowingly or otherwise) but are you thinking about your business model as this seismic shift on consumer behaviour?
The shift to on-demand started back in 2008 and was heavily influenced by the launch of the first Apple iPhone just 12 months earlier. So it’s not new. But the pandemic in 2020 saw an incredible acceleration of the ‘I want it now’ consumer behaviour. People simply wanted (and expected) to be able to receive products and services almost immediately.
Coupled with around 50% of people working from home, part or full time, and an almost exponential growth of online purchases and corresponding household deliveries was clear for all to see. Think for a moment about your own purchasing habits…
Maybe you get your weekly groceries delivered?
Or maybe you buy your clothes online these days? Who’d have thought that going to a shop could seem almost archaic?
The pandemic also accelerated the growth of lifestyle habits too. There are a plethora of health and wellness awareness, online gaming, access to new hobbies, social media, online conferencing platforms… The list goes on.
Can you think of a business that you use that has adapted to this changing trend of on-demand? Maybe you ordered something online and found yourself saying, “It’s arrived already!” just the next day.
And if you’ve bought anything from a business that utilises Shopify you may have experienced their ‘One-click Checkout’ facility that strives to make your opportunity to purchase as seamless and smooth as possible. It’s just another piece of the on-demand jigsaw.
Now, it’s easy to use the Silicone Valley titans as posterchildren for innovation and pioneering new trends. But how about here in Australia?
Actually, let’s zoom in even closer. Let’s talk about NSW.
Back in 2017 the NSW Government launched their plan to revolutionise an industry that had seen little innovation since its inception; public transport. They began trialling On-Demand services across Sydney; connecting existing transport to hubs to key services such as hospitals, universities and schools.
In a very telling statement, the then Deputy Premier John Barilaro said, “This trial is all about putting the transport customer at the centre of the system”.
He went on to promote that they wanted this new model of transportation to extend to rural and regional NSW too. But, let's backtrack for a moment. Just think about his statement about putting the customer first.
And that’s the point isn’t it? Just imagine if every politician and business owner focussed on their customers in this way…
Maybe you do already but, imagine if you framed every business decision with a ‘customer first’ mindset. Imagine if your actual business model was designed with that mindset.
Hopefully we’ve made you stop and think. In our business advisory role we like to discuss topics such as these with our clients. The twin crises of 2020 which includes public health and the economy are the gifts that will keep on giving, as will the shift to the on-demand economy.
New consumer purchasing habits have been picked up. And as we all know, habits are hard to break.
As business advisors and business-focussed accountants we’re here to help. We’ve had to adapt in a rapidly evolving industry too, we understand. But it’s a world of possibilities and we’d love to help you realise them in your business.
If you have aspects of your business model needing a professional review, get in touch. Contact us for professional business and accounting advise.