Fractional Ownership Models
A business model where consumers own a share of a product or service, often seen in luxury goods and emerging in FMCG for high-value items.
Implications
A business model where multiple investors share ownership of an asset, such as real estate, aircraft, or luxury items, each holding a fractional share and benefiting from shared use, cost savings, and potential investment returns, often managed by a third-party provider.
Example
Example: A group of investors enters into a fractional ownership model to jointly purchase a private jet, each owning a share of the aircraft and sharing the costs of maintenance and operation, while having access to the jet for personal use based on their ownership stake.
Related Terms
Different from traditional ownership, where one entity owns the entire asset, fractional ownership allows multiple parties to share ownership and costs, making high-value assets more accessible.
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