By Simon Bond

The internet has connected buyers and sellers, therefore bringing more of the existing excess capacity to market, which WILL continue to put downward pressure on prices. The deflationary forces that we have seen over the past years WILL prevail as technology and innovation brings more supply to markets quicker and cheaper.

In a world of scarcity, which was what the old economy was built on, by way of asset hoarding with the intention of pushing up prices, pricing power was evident. 

It could also have been known as “the hoarding economy”, prices were pushed higher by scarcity as buyers overwhelmed sellers. Companies knew this only too well and aided and abetted by attempting to control supply and demand in order to maximise profits. The Internet destroys their ability to do this anymore.

However value is now being created increasingly by collaboration, and this is the structure of the new economy. If you doubt this look at the success of the peer collaborators such as Uber, Lyft and We Work to name three.

 

The growth in the Asia Pacific region continues to be a standout.