New game, new rules…
With the advent of the digital age, we’ve entered into an economy that’s unlike any other before it. Because of the internet, we have unlimited access to information, and technology has enabled a wealth of small businesses and large corporations to connect and source unique goods. The resulting creator economy allows for an unprecedented level of entrepreneurship, an expansive ecosystem for innovation, and incredible opportunities for small business owners to build thriving companies that contribute in meaningful ways to their local communities.”
In the social commerce world, literally, anyone can become a creator. It’s a radical shift in the balance of market power as more people realize the opportunities of monetizing their creativity, influence, and networks.
For platforms and brands, this people-powered commerce represents an extraordinary growth opportunity. But, and it’s a big but, to take advantage they have to recognize just how different the new dynamics are – and, crucially, that their success will hinge on empowering and supporting this new breed of creators.
The creator economy, building on advances in connectivity, sharing assets, and distributed manufacturing, is giving rise to a new type of self-employed artisan. They are joining together, collaborating, and competing in ways that were not possible before. In a powerful demonstration of how attention is becoming the scarcest resource in the modern world, creators with an interesting idea can find themselves in possession not just of the ability to execute it, but to command public attention for what they create.
Creative industries are the fastest-growing sector of the global economy, accounting for 9% of Europe’s GDP. Despite this, however, employment in the creative sector remains low, at just 10% of the total workforce, compared to 25% in the automotive and manufacturing industries. The film industry directly employs 1% of the workforce on an ongoing full-time basis. The whole creative sector employs 2%.
Creativity is the most important skill of our time. As a society, we’ve shifted to an economy in which products can be copied and duplicated at almost no cost. The usefulness of a physical object diminishes rapidly after its initial purchase. Now, it’s what an object enables that matters. And the most powerful driver of the new economy – is creativity.
Enterprises also need to rethink business models to directly address the unique contribution of creators. With the right approach, these can not only reward creators, but also serve as a source of inspiration for brands and platforms as they develop new products and services.