Consumer Product Rental

Consumer Product Rental

Brief Excerpt from Industry Overview Chapter:

Companies in this industry rent personal and household goods, primarily for short periods but also under longer-term arrangements. Major companies include Aaron's, Redbox, and Rent-A-Center (all based in the US), along with Cinema Paradiso Rental (UK), Furlenco (India), Home Essentials (Hong Kong), Lyght Living Furniture Leasing (Germany), and TSUTAYA Store (Japan).

COMPETITIVE LANDSCAPE

Demand is driven by personal income. The profitability of individual companies depends on the right merchandise mix and inventory financing costs. Large companies have advantages in economies of scale in purchasing, distribution, and advertising. Small companies compete effectively by providing superior customer service and catering to local demographics. The US industry is concentrated: the 50 largest companies account for about 60% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major rental product categories include household type appliances (20%); home health care equipment (15%); social events equipment (15%); home furniture and accessories (10%); and pre-recorded cassettes, tapes, discs, or video games (10%). Other products (30%) rented include formal wear and costumes, party supplies, and recreational equipment.