The sharing economy is expanding exponentially all over the world. Renting is not the latest concept for people. However, nowadays people can rent everything including clothes, property, furniture, etc. If someone has to relocate or leave a place, it would be difficult to sell everything and buy it once again. They will look for alternate options. Due to such problems, rental ideas are expanding so much. It is a very good business option in today’s world.
Furniture renting has it’s very own focal points. Individuals are currently searching for various choices to stay away from the inconvenience of migrating or exchanging. This procedure had prompted the formation of the rental of new businesses. Today, one can lease everything without exception on the web, be it a vehicle, fabrics, furniture or home machines. The pattern is powered by expanding urbanization, a rising pattern of family units, and extending working populace. Individuals are winding up increasingly efficient and settling on leasing items as a progressively traditional decision.
Renting furniture- a new concept
The idea of Rent to Buy is additionally doing benefits around, as the rental organizations are likewise enabling individuals to purchase the furnishings, they have been leasing for some time. The estimated worth of the global furniture rental market is between 5 to 8 billion dollars. The idea of ownership has been supplanted by the craving to increase better encounters by leasing or sharing assets. Whatever the outright numbers, the development in portability and intra-nation movement recommends that there is a vast and regularly developing customers of urban experts with transferrable employments and extra cash. Expanding quantities of furniture and apparatus rental new companies have jumped up to take into account this customer base.
Types of Furniture Renting
The global furniture market can be broadly categorized into four categories:
- Domestic Furniture
- Office Corporate Furniture
- Hotel Furniture
- Furniture Parts
Top Player of Furniture Rental Market
Major players in this sector today includes CORT, Aarons, Mobley, In-lease, Franco, and Rentomojo. Now The world’s biggest furniture retailer Ikea is also jumping into furniture rentals.
“We will work together with partners so you can actually lease your furniture. When that leasing period is over, you hand it back and you might lease something else,” Torbjorn Loof, chief executive of Inter Ikea, which owns the Ikea brand, told the Financial Times
Possibilities of growth
Research recommends that the furnishings rental market is required to develop at a vigorous rate over the estimated time frame — 2017-2024. With the ascent popular for the furnishings rentals among the level 1 urban community, it has likewise let to the expansion in mindfulness, with which the furnishings rentals are additionally looking at towards level 2 and 3 urban communities for as a potential market. Over the most recent 3 years, the furnishings rental industry has seen the development of 1000% and has been developing 2.5 occasions each year.
The global furniture rental industry is expected to grow at a very huge rate in the next 5 years i.e., from 2019-2024. The essential factor in charge of the development is an expansion in a number of managers that are joining rental furniture‘s into their corporate portability approaches as a central administration offering. The industry is driven by wide range macroeconomic components, for example, the number of organizations working locally, the joblessness rate and the business feeling list, which are all normal to improve amid that time span.
if environmental concerns weigh on your conscience, it may be worth it to you to be less than perfectly economical to know your consumption habits aren’t contributing to the millions of tons of furniture waste disposed of every year. Ikea has already started initiatives to recycle wood and some products such as mattresses in some countries. Mr. Loof said it had already changed how it designed sofas to ensure they did not end up in a landfill but instead could be separated more easily into individual materials such as wood, metal, foam, and textiles.
Feather wants to take the pain out of owning furniture and today announced the close of a $3.5 million seed round for its furniture rental business. Kleiner Perkins Caufield & Byers and Bain Capital Ventures co-led the round, with participation from several other investors, including Y Combinator (YC).
If you are really looking to enter the market rapidly then ready to launch solutions is a viable option. With ready to launch solutions you can set up your rental marketplace within less span of time and cost-effectively. Read popular online rental marketplace solutions, which allow you to launch your rental marketplace swiftly:
Revenue Strategies for Furniture Rental Startups
Effective lease rate pricing is a core business function for startup furniture leasing companies. But pricing isn’t the only revenue tool at your disposal. In order to capture a larger share of the market, many furniture rental providers also offer rent-to-own or financing options on their merchandise.
From a consumer perspective, rent-to-own and other financing options allow people with no credit or bad credit to buy furniture on an installment basis. Since there is no credit check, you will incur more risk than a traditional lender. To compensate, you will need to charge higher rates and be proactive about collecting on bad accounts. But the good news is that with the right strategy, you can significantly boost revenues by creating a path to ownership for your customers.
In a nutshell
Development of urban district and the rising number of working populace combined with unevenness identified with the settlement is anticipated to trigger the development of the furnishings rental market. Moreover, the rising pattern for leased condos alongside accessibility of tastefully engaging and lightweight rental furniture is likewise expected to fuel the development of the furnishings rental market.