On the global scale, the furniture rental market is worth more than $335 billion. Who’d have predicted that the rental industry, especially the furniture industry, would expand to such a size and see such a meteoric economic rise? The business of renting furniture has been around for a while, but in the last three years, millennial entrepreneurs have discovered the pain points of temporary living and turned them into an opportunity. They coordinated and drew previously unorganized, community/locality-bound businesses into the digital realm.
- Due to the high cost of living in the city, most Thane residents try to strike the right balance between factors such as commute time, apartment size, location, amenities, and so on.
- As a result, the concept of renting furniture in Thane is a boon for everyone. It Is common for people to resettle within Thane because of job opportunities and the availability of several CBDs.
- Residents can avoid large investments for short-term needs without compromising on furniture by renting furniture.
- The concept of renting furniture in Bangalore is not limited to those who cannot afford to purchase it. Instead, the online rental marketplace caters to a wide range of customers, including a niche product that prefers high-end products over generics.
- Many of the celebrity clients have their homes featured in the media, and it’s impossible to show the very same set of furniture every time. Rental furniture is beneficial since the celebrity client can have it changed according to the theme on a regular basis.
How Might Cross-Border Migration Open Up More Opportunities For Furniture-On-Rent Businesses?
- While cross-border population mobility is projected to be the next significant potential, the migration of national citizens between cities and states for the purpose of job shifts has already fueled furniture rental demands.
- While cross-border migration is mostly driven by an increase in the number of long-term overseas assignments, there has also been a massive population shift from underdeveloped to industrialized countries. This has resulted in an increase in the number of rental units, with the majority of owners preferring to rent furniture.
How Does Prosperity Growth Traverse Tier-2 Cities with Rentable Furniture?
- Tier-1 cities were the center of interest for furniture-on-rent providers till 2019. However, in recent years, the steady development of tier-2 cities has aligned residents’ needs toward a rent-based economy, which includes renting a house, a car, and even furnishings.
- CORT, a renowned furniture-on-rent company, has a strong rental presence in the Northeast, Southeast, and Midwest regions of the United States, but it has recently expanded into the Intermountain and Pacific areas. Furthermore, numerous companies have started offering tier-2 city dwellers flexible subscription plans in order to establish a firm foothold in such locations.
Rentable Furniture Revenue Analysis from 2016 to 2020 vs. Demand Forecast for 2021 to 2031
- According to Fact.MR, a market researcher and provider of competitive intelligence, the market value of furniture on rent increased at a 3.8 percent CAGR from 2016 to 2020, with countries such as the United States, United Kingdom, Netherlands, Switzerland, and Japan accounting for a significant share of the global market.
- One of the obvious reasons for the rise in furniture on rent subscription is the constant rise in asset procurement costs. In addition, the constant increase in demand, especially in small and medium IT businesses, has fueled this furniture purchase approach.