India’s transition towards rental economy

DECCAN CHRONICLE.
Published Feb 27, 2020, 2:18 pm IST
Updated Feb 27, 2020, 2:18 pm IST
This changing mindset is crucial to the furniture rental business in India as it is to other models in the sharing economy
Representational image
 Representational image

In this era the biggest paradigm shift is in the nature of ownership, which has been brought in by the popularly known Gen z, with a class of young professionals who prefer the flexibility, affordability and mobility of renting over the burden of ownership. Renting has changed the way people, and especially the youth, shop in India. The preference is to experience over possession and the result is that the renting market is expected to grow to 5$ Billion by 2025.

One of the major contributors towards the renting and sharing economy is the Genz and Millenials. The quick transformation of their lifestyle, possessing over the new trends and experiencing without owning has made startups like Cityfunish, are becoming one of the key driver’s of the renting economy. This changing mindset is crucial to the furniture rental business in India as it is to other models in the sharing economy.  

 

“Running at a faster pace, moving to a new city for a better work opportunity and not investing in purchasing rather renting makes it both affordable and flexible for them. In my personal experience, after a point of time, one wants to upgrade their lifestyle and owning up things somehow makes it restricted.” according to Neerav Jain, Founder and CEO of Cityfurnish, one of the leading furniture rental platforms in India. Cityfurnish started its services from Gurugram, and is currently servicing 6 cities including Delhi NCR, Mumbai, Gurugram,Pune and has recently forayed into Hyderabad market.

The Cityfurnish founder believes that with the young Indians travelling to various parts exploring a better future and career growth, more pertaining product choices like furniture is also based on a person’s current professional and financial situation where one has to spend a hefty amount to to furnish your bedroom in one go, but a small rmi per month is more palatable.

Young students or working professionals are considering renting as a more attractive and pocket-friendly option which facilitates them to shop better and smarter. With temporary requirements and fast changing trends, renting saves the guilt of acquiring furniture, designer clothes, sports equipment, cars, medical and health equipment, electronics etc which has given rise to new rental service providers.

Renting or sharing lifestyle is emerging in the business and transiting towards a new phase of economy. The benefit of the renting and sharing demand is manifold, from making it affordable with additional services and picking up your favorite products at a very lower cost. Though, the market is making great initiatives and bringing more to cater towards their consumers and challenges like safety, security, consumer experience and relationship for better service and quality.

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