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Is furniture on rent a growing trend in India

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Is furniture on rent a growing trend in India

Last updated: October 22 2019
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  • Is furniture on rent a growing trend in India

    How is the concept of furniture on rent catching up with Indian people? Can it actually be a trend given the fact that we subject our furniture and other assets to high wear and tear? Is renting furniture even an affordable or rather, a logical decision?
  • #2

    #2

    Re : Is furniture on rent a growing trend in India

    Well, to begin with, it is a concept more likely to attract and influence people living on rent yet wanting to live, or put on display, a comfortable and eye-pleasing way of life.
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    • #3

      #3

      Re : Is furniture on rent a growing trend in India

      Renting furniture the new trend among young professionals

      Meenakshi Rohatgi

      Young working professionals keen to change cities or houses with no extra baggage, literally, have found furniture rental firms to be an attractive and pocket-friendly option.
      | TNN | Updated: Jun 27, 2016, 15:11 IST


      Representative image

      Pune: Young working professionals keen to change cities or houses with no extra baggage, literally, have found furniture rental firms to be an attractive and pocket-friendly option.

      Even though this is a new concept in the country, students and young working professionals who come to Pune are renting furniture as the firms allow them keep the items as long as they want. Other benefits such as free delivery and set-up, relocation services, free cleaning and option of a free yearly swap are also part of the package.

      The firms offer a low-cost way to change the entire look of one's home. Consider a living room couch for a monthly rent of Rs 630 as compared to the Rs 15,000 to Rs 50,000 price range in the market.

      When Priyanka Parkhi had to move to Mumbai from Pune, she planned to give the rental option a go only for a short while.

      "I thought I would buy furniture later. But I saw there was no dearth of rental options and a firm even offered to take care of the furnishing for the entire house, including the drapes and matching carpets. I do not mind if my dining table and chairs and my study table have been used earlier as long as they are in good condition," she said.

      There are several others like Parkhi who are adopting this rent-and-use philosophy.

      Furlenco, a firm that provides matching decor and furnishing with the rented furniture, has over 5,500 customers across Pune. "What works for us is a Netflix-type subscription model, which allows customers to avail facilities such as free relocation of furniture, damage waiver up to Rs 1,000, cleaning and interior services," the firm's founder Ajith Mohan Karimpana said.

      Another player in the segment, RentoMojo has adopted an asset-light model, where they tie up with vendors and charge them a fee to connect with customers.

      RentoMojo was born from chief executive officer and founder Geetansh Bamania's personal experience. "Like many other young working professionals, we were living in rented apartments. Each time we moved, we had to equip our house. For ages, we have been fixated on the idea of owning stuff and after a while, when it goes out of fashion or doesn't suit our lifestyle we simply sell it for peanuts. That's when we got the idea of RentoMojo," Bamania said.

      According to Bamania, apart from regular furniture, Pune has a good demand for low-ticket items like bean bags, study tables and dressing tables. The demand for office furniture rentals is gradually. "We have an active subscriber base of more than 1,900 here and are looking at 40% to 45% monthly growth in the number," he added. Most of their orders are from working professionals between the age of 25 and 40. Analysts attribute the popularity of rental furniture to the rise of smaller firms and startups in the city. Moreover, the rental specialists have technology platforms supporting their services, which allow customers to search and order remotely.

      In fact, MebelKart, a specialist in online furniture and end-to-end home services, is launching a separate arm for the growing segment. "We work with local vendors on an inventory basis. We have been getting constant demands for rentals of furniture. The challenge is making the traditional furniture market sellers understand the concept of online buying and rental," Rahul Agarwal, cofounder and chief executive officer of MebelKart, said.









      https://timesofindia.indiatimes.com/...w/52921171.cms

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      • #4

        #4

        Re : Is furniture on rent a growing trend in India

        Thanks! So you mean that it is only for people who want to make an impression on the society they live in or their neighbours in general?

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        • #5

          #5

          Re : Is furniture on rent a growing trend in India

          Does renting furniture make financial sense?

          A new trend of renting furniture is emerging. If you’ve been considering this option, here’s a handy guide to help you decide.

          Furniture rentals are a cost effective way to do up your home. Find out if they will work for you.

          So you’re planning to move house. You’ve picked out the perfect property and done all the paperwork. What’s next? Doing up your home with beautiful and functional furniture.

          But here’s the catch: furniture can cost a bomb. To counter this dilemma, a new trend is emerging: renting furniture. If you’ve been considering this option, here’s a handy guide to help to decide.

          Why rent?
          The sharing economy has grown exponentially across the world. The idea of ownership has been superseded by the desire to gain better experiences by sharing resources. Increasingly, people are turning to renting everything from property to clothes. Furniture and appliances are no exception. It gives you access to various utilitarian products, without the burden of buying and maintenance.

          How much does it cost to rent or buy?

          The pocket pinch
          Renting a set of basic furniture and appliances can cost you anywhere between Rs 10,000 and Rs 15,000 each month. While this doesn’t seem cheap, usually free delivery and set up, relocation, cleaning and maintenance, and swaps are also part of the package. You can get complete bedroom package for as little as Rs 1,200 a month. This includes a double bed and mattresses, a bedside table, a wardrobe, a dressing table and bed linen. Try buying the same stuff and you will have to shell out nearly Rs 35,000. Not too much, but remember there is an opportunity cost of this money.

          ET Wealth crunched the numbers to find out which option works out better. If you rent, you will pay only Rs 1,200. If the balanced Rs 33,800 is invested to earn a modest 8%, that corpus can fund the rent for the next 33 months. After that, the buying option becomes more cost effective. Do keep in mind that after 33 months, the value of the stuff worth Rs 35,000 would have depreciated to Rs 19,879 (assuming 25% depreciation).

          Services that let you rent furniture

          Furlenco
          Furlenco offers furniture designed in-house. It’s present in Pune, Bengaluru, Mumbai, and Delhi NCR.

          Rentmojo
          Rentmojo offers both individual products and affordable packages. It’s present in Mumbai, Bangalore, Pune, Delhi NCR, Hyderabad and Chennai.

          Cityfurnish
          Cityfurnish works with third-party providers through a marketplace model. It’s caters to Delhi NCR, Bangalore, Pune and Mumbai.


          Needless baggage
          If you’ve invested a fortune in doing up your home with the furniture of your choice, you might be tempted to take your cherished possessions along when you move. But this luxury comes at a hefty cost. On average, it costs Rs 20,000-30,000 to pack and move a set of basic furniture (2 BHK). Not to mention the damage that it can cause your furniture.

          Is it for you?
          Does your job entail relocating often? Or do you intend to move around for a while before settling down anywhere? If you’re in a situation that calls for temporary living arrangements, renting makes sense. You wouldn’t want to be saddled with EMIs and furniture you will have no utility for later.

          THE PROS AND CONS OF RENTING

          WHAT’S GOOD?

          Easy on the pocket
          In the short term, the low rentals would be a better deal than large payouts for each appliance or furniture.

          Change it up
          You can upgrade your furniture and appliances or swap out a few items to change the look of your home anytime.

          Free relocation
          Some companies offer a free moving service. This is a huge advantage, since hiring a mover can be very expensive.

          No maintenance
          For furniture you own, the upkeep is your responsibility. Whereas, if you rent, the service provider will do it for you.

          WHAT’S BAD?

          Damages could cost you
          Some rental services promise to waive minor damages, but the policy varies and you could end up paying a hefty amount for repairs or replacement.

          No personalisation
          While you can choose the package or furniture you like from the selection on offer, it will not be made to order.

          Recurring expense
          While buying a piece of furniture is a one-time expense, renting is a recurring one, which can add up over time.

          Limited options
          If you intend to buy, the selection available to you is endless, ranging in price, make and material from basic to luxury, but when you rent, you have to take your pick from what’s on offer.







          https://economictimes.indiatimes.com...w/60335536.cms

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          • #6

            #6

            Re : Is furniture on rent a growing trend in India

            Want It? Rent It

            Online renting companies are changing the way Indians use products by disrupting the very idea of ownership.




            Last December, Delhi-based Kritika Verma moved to Bangalore to work with a travel company. Soon, the 23-year-old took a house on rent and was searching for some basic furniture - a bed, shelf and a small side table. Verma did not want to buy them all as she was expecting to return to Delhi soon. It was then a friend suggested that she should try renting furniture online. With some hesitation, Verma hit the internet and stumbled upon Furlenco, a furniture rental portal. "I paid Rs 1,300 as a months rent and hired the furniture I wanted," says Verma. "It would have cost me more than Rs 18,000 if I had bought the same." The process of 'renting' was also much simpler, she says. "I saved time, money and lots of energy."

            Verma is not alone. Thousands of such young customers are now using tech-enabled renting and sharing services to hire an array of products - furniture, consumer appliances, designer wear, baby products, art pieces and even farm equipment. The online renting and sharing market is set to change the way we consume goods and services. The global sharing economy was worth $3.5 billion in 2012 and, growing at around 140 per cent CAGR, the industry touched $115 billion in 2016, according to Guru Malladi, Partner at EY, Strategy, Innovation and Digital. It is projected to reach $250 billion by 2020. "Though highly fragmented, India forms around 10 per cent of this," he says. A PricewaterhouseCoopers report shows that the rental market will touch $335 billion by 2025 globally.

            The segment sees brisk action today. Market researcher AMR notes that the online clothing rental market, which forms a significant chunk of the total retail renting pie, is expected to grow to $1.8 billion by end 2023 from the current $1 billion. Forrester Research estimates that in India online retailing of furniture and homeware touched $1.1 billion in revenues in 2017, from $900 million in 2016, growing at about 36 per cent year-on-year. The rental market makes up only a small pie of the overall sharing economy.

            "Thanks to the easy access enabled by technology and the fact that more youngsters now want to remain asset-light, the renting and sharing economy is here to stay," says Malladi. A bunch of start-ups have already come up - furniture, consumer appliances and apparels are the most popular categories - and the sector is on a tear, growing at more than 100 per cent annually.

            Owning to Renting

            Traditionally, Indians have preferred owning things. Owning was 'paisa-vasool' (value for money) and renting an act of 'wastage'. But the mindset has started to change with the advent of rental service platforms such as Airbnb and taxi aggregators like Ola, Uber and self driving car rentals services such as Zoomcar. "Technology has redefined the concept of sharing and renting in India," says Amanpreet Bajaj, Country Manager, Airbnb - India. "The sharing economy here is now growing exponentially and is further triggered by rentals available at all price points, reduced expense and maintenance, increase in smartphone penetration, introduction of new apps and websites enabling sharing and renting along with rapid urbanisation." The company claims to have grown by 115 per cent over the past year in India with over 30,000 listings across the country, while Zoomcar witnessed 40 percent growth in its revenues last year.

            Amanpreet Bajaj Country Manager, Airbnb – India (Photo: Shekhar Ghosh)


            Also, with the country's economy growing at a fast clip, mobility of the younger generation has increased exponentially. "Today, 25-to 30-year-olds are still exploring cities and haven't made up their minds on where to settle. Still they want to access every product and service. This is a big opportunity for the renting economy," says Vineet Chawla, Founder of Rentickle in Gurgaon. The company was launched in November 2015 in the National Capital Region and offers furniture, appliance, and other home furnishing essentials on rentsin Hyderabad and Bangalore.

            The industry is expecting more disruption going ahead given that the young generation has a 'crave list' which may not necessarily be matching their current incomes. "The new generation wants to spend on healthcare, travel, mobile phones and on experiences and entertainment," says Geetansh Bamania, Co-founder and CEO of Bangalore-based Rentomojo that offers furniture, appliances and digital SLR cameras.

            Cost Factor

            Renting provides value for money. "People these days wont wear the same lehenga or saree for many weddings. Many youngsters crave to wear a Ritu Kumar lehanga or Manish Malhotra sherwani. Renting comes handy here," says Pranay Surana, Co-founder Flyrobe, an occasional-wear company that operates in six cities in the country.

            The growing fashion sense among the new generation, thanks to social media such as Instagram, is also propelling growth of the shared economy. From designer wear to home interiors, today Indians wants everything. "Many of our customers want new looks for their interiors, want to use fashion furniture much frequently, every month in some cases. The rent for a month costs only 2 -3 percent of the retail price," says Ajith Mohan Karimpana, Founder of Bangalore-based furniture rental company Furlenco. "More than 5 per cent of our customers fall in this category." The company, started in 2012, has served more than 60,000 customers in the past five years.

            Business Model

            With the rent market now blooming, companies have adopted various business models and market strategies to get ahead of the curve. While some own all the items they rent out, others source products from third party providers. While renting may be cost-effective for customers, it is still a capital-intensive market. So many players prefer the hybrid model. Explains Chawla of Rentickle: "While we own the furniture, we also have brand warranties for home appliances. For cameras, we rent them from third parties for our customers." Furlenco follows the same strategy. "We have a 50-50 ratio with our products. While we own half of our products, we source the rest," says Karimpana.

            But not everything is hunky dory here. "Right marketing strategies are very important," says Satish Meena, Senior forecast Analyst, Forrestor Research. "If a customer is using, say, a furniture for more than 12 months, buying will be a better option considering the easy pay options many retailers are offering." In fact, failed market strategies have cost some players dearly. A couple of them have shut shop already. Apparel rental start-up Klozee and fashion rental site Blinge had to shut operations because they could not scale up. "Being one of the first players in the market, we extensively used all the online and social media marketing tools to stay relevant," says Karimpana. Many furniture rental companies have tie-ups with real estate players as a go-to market strategy.

            Ajith Mohan Karimpana, Founder, Furlenco (Photo: Lantern Camera)

            "We are offering discounted rates and provide incentives for our customers who rent for longer tenure," says Bamania of Rentomojo."We are also offering owning options after a certain period of renting." The company currently operates in eight cities. An advantage of being an early bird is that while the players create the market, they face less competition. "Since the competition is less we have not started giving discounts," says Surana of Flyrobe.

            Hurdles

            Even if the market offers exponential growth, to climb heights the industry has to streamline operations and make the process much more customer friendly. Asserts Sanjay Poddar, a banking professional in Pune who rented some furniture and home appliances from an online platform recently: "The initial verification process was a bit tedious where I had to submit a series of documents including Aadhaar, PAN details and an employee letter." He adds that the company also asked for his social media profile and some other details which he denied. There were some coordination issues as well and as a result the whole process took more time than expected. Companies have to work more on making these processes more customer friendly, feels Poddar, while highlighting the positives such as cost effectiveness, hassle free logistics and good after-sales service.

            Karimpana says that companies understand this and are working just like banks while renting out assets sometimes worth a few lakhs. "So we need stringent KYC processes and require personal identification. This sometimes leads to friction. But we hope this will change once the market matures." Adds Bamania: "We have to make sure the safety of the assets as currently there is no insurance protection for them." Most of the companies wont mind the normal wear and tear, but customers may lose their security deposit (which in most cases is twice or thrice the monthly rental) if any serious damage occurs. Customers look forward to building a trusted relationship with the companies. "Trust is an important factor. As a customer, I am concerned about the hygiene factor, especially in the case of apparels," says a Bangalore-based customer who recently rented designer wear. Indians are still not comfortable wearing something others have already used. Apparel rental companies are tying up with major laundry service companies to solve this issue. "We have tied up with French laundry major 5asec for all our laundry services," says Surana.

            That said, lack of proper policy and regulation dogs the industry. Market observers believe that once the industry matures, proper policies and tax regulations will come and help the sector leap forward.

            Way forward

            Far-seeing the possibilities, online rental companies are now planning for expansion. But the investment scenario is yet to gather pace. "Since it is a very niche, emerging market, it is difficult to convince investors. There was an investment boom in the sector during 2015-16. But the scenario was dull last year," says Meena of Forrester. However companies are optimistic. "Our revenue has grown more than 100 percent year-on-year and we are investing it to expand to two more cities in next one and a half years," says Bamania of Rentomojo. "We will also come up with few other categories." Flyrobe, currently operating in 20 locations, is planning to be present in 10 more places by the end of this year. "We are planning to add a number of offline stores" says Surana.

            Co-founders of Renticle

            Delhi-based fashion rental start up RentitBAE is expanding to three more cities while Rentickle is planning to reach two more cities and will add baby products category this year. Bangalore-based product rental firm GrabOnRent has partnered with international manufacturers to strengthen its furniture portfolio. Furlenco is going to offer kids category and will offer its services in a couple of more cities this year.

            Customers like Kritika Verma will have a handful of choices by the time they move to the next city.









            https://www.businesstoday.in/magazin...ry/276842.html

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            • #7

              #7

              Re : Is furniture on rent a growing trend in India

              Well, that is not the entire truth about it. You can say that it is one part of the bargain. The other part is their own comfort and convenience. People want to have a comfortable lifestyle and the furniture is one aspect that can make a lot of difference to the aesthetics as well as the general life of people.
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              • #8

                #8

                Re : Is furniture on rent a growing trend in India

                From the web -

                Furniture on rent: A growing urban trend

                Living on rent need not mean that people have to give up on a comfortable lifestyle. For people who are on the move, renting furniture and appliances, can be an easy way to decorate their homes, inexpensively
                When 22-year-old Ashish Sharma shifted from Noida to Mumbai for his MBA, he decided to rent furniture, to furnish his house. “I wanted a good, comfortable and stylish study table, wardrobe and a bed. It made sense to rent furniture, as I was living on rent. Nowadays it is easy to rent furniture online and there is plenty to choose from,” he says.

                Renting furniture can be a practical option for students, expats and those living temporarily in a metro city. “If one owns a home, it makes sense to buy furniture. However, if an individual likes to experiment with décor and have different styles of furniture, renting is good option. Online furniture rental websites offer the option of swapping furniture, free relocation and even offer good deals, if one rents furniture for a long duration,” says Amit Wadhwani, director of Sai Estate Consultants.
                “Many brokers who deal with rental homes, also have references of businesses that offer rental furniture and appliances. Brokers are no longer simply in a business of selling and renting houses. They also provide additional assistance, to enhance their recall value among customers,” Wadhwani adds.
                Rental furniture: Who are the takers?

                According to Ajith Karimpana, the founder and CEO of Furlenco, an online rental platform with services in Bengaluru, Mumbai, Pune, Delhi, Gurugram and Noida, “Urban millennials (aged between 23 and 28), who are well-placed and have high disposable income, place value on owning experiences, rather than owning things. Another segment is the ‘just-to-be-married’ (aged between 27 and 35), who are embarking on a new journey together and want to have a beautiful home, but do not have the means to spend a large sum on buying all of it (at the quality they expect) at one shot. So, renting furniture is a good option for such people and this trend is gaining popularity among those who are on the move. Our customers are not necessarily people who cannot afford to buy furniture. It is a choice they make for other reasons, the most prominent of which is the zero-commitment that it involves. As the average customer rents furniture for 18 to 20 months, it is possible for the customer to change/swap the models at least once. Queen-sized beds, single beds, living room furniture, children’s furniture, wardrobes, study tables and appliances are in demand.”
                Advantages of renting furniture

                Renting furniture makes it easy for one to pack up and move to a different house, city or country. Moreover, one can add variety to the home décor, by changing the furniture whenever one needs to. “The whole rigmarole of finding new furniture and appliance shops, bargaining for prices, handling logistics, delivery, labour, installation and then, selling these products when it is time to move, was hitherto the biggest inconvenience for millennials, keeping them from enjoying a good lifestyle,” says Vineet Chawla, founder and director of Rentickle, an online furniture and home appliances rental start-up, which offers products at just 2-3 per cent of the cost of buying these products, along with benefits like free home delivery and maintenance.

                The market for rental furniture in India

                The market for rental furniture has huge growth potential in India. Till recently, this market was dominated by unorganised and local players, who offered little variety and not much in terms of value for money.
                “Organised furniture rental services, was a huge unfulfilled market. With professionally managed companies, the consumer now has choice, vis-à-vis designs, variety, category, convenience and rental price. Trendy lifestyle products can be availed of, starting as low as Rs 99 per month. While refrigerators, washing machines and 32-inch LED TVs are popular products in the appliances category, beds and sofas are the top preferences of clients in the furniture category,” concludes Chawla.
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                • #9

                  #9

                  Re : Is furniture on rent a growing trend in India

                  Nice concept, though it would help to know how they facilitate the returning of the furniture taken on rent. What kind of deductions are made in furniture taken on rent for damages?

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                  • #10

                    #10

                    Re : Is furniture on rent a growing trend in India

                    Every company renting out furniture has it's own set of policies concerning damaged goods and all of them charge according to the extent of damage done to the furniture taken on rent.
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