SHARING ECONOMY VS TRADITIONAL BRICK AND MORTAR IN THE 21ST CENTURY – BY NIK ZAFRI

 

The 21st century has seen a dramatic shift in how businesses operate, with the rise of the sharing economy challenging traditional brick-and-mortar businesses. The question of which is better depends on various factors, including industry, customer preferences, and economic conditions. 

(I still notice that many Malaysians are reluctant to use the simple Touch ‘n Go eWallet, citing reasons such as avoiding “taxes” (without realizing the benefits of the point system) and using “political excuses” (despite the fact that both high-ranking officials from the ruling government and the opposition also utilize it).

SO, WHICH ONE IS BETTER

Well, empirically speaking for a person who have been in both shoes - it all goes back to the industry and business model. You can't simply shift drastically from brick and mortar to sharing economy just because your competitor are doing it - what you need is Proper Planning.

• For services and rentals (transportation, accommodation, freelance work) → Sharing Economy is winning due to flexibility and lower costs.

• For products requiring a physical experience (luxury retail, dining, personal care) → Brick-and-Mortar still holds value due to customer trust and experience.
• For hybrid models - personally speaking - I would prefer this model (restaurants using food delivery apps, physical stores with online platforms) → The future may lie in a blended approach, where traditional businesses leverage digital tools.

Ultimately, businesses that adapt and integrate technology into their models - whether they are in the sharing economy or traditional sectors - will thrive in the 21st century.

(Your choice - and don't say "capital" or "money" as an excuse - there are so many resources available, as long as you want it)