2018 Sector Trends - Rental Marketplace
Millennials are experimental and always on the lookout for new products and services that help them save time, money and improve their quality of life
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This year some of the key trends that the rental marketplace has exhibited have been interesting and have set the road ahead for growth of this sector in India. Some key trends have been:
1. Rise in Access over ownership
Industry reports and our own SEO analysis shows that the keywords associated with ‘Rent’ have shown 20% month -on-month growth in search volumes over the last year. This can be attributed to two reasons –
* Consumers becoming pragmatic about ownership
* Rise in the number of rental companies and services offered.
2. Death of the Myth - “You rent when you can’t afford”
The social stigma that prevented users from renting products is fading fast and more so in many parts, it's being deemed as a ‘smart choice’. This psychological change in society will play a big role in the change in consumption pattern in future and renting becomes a preferred lifestyle choice.
3. Adoption of ‘Try before you Buy’ Mindset
The industry has seen customers increasingly share the pain point that they are unable to make an impulsive decision by spending 20 minutes in a showroom or an online store. Renting a product gives them a hands-on experience and they are able to make a more calculated purchase especially when products cost 2 - 3 months of salary.
4. Millennial shaping the growth story.
Almost 80% of the customer base in the rental marketplace today is under 40. Millennials are experimental and always on the lookout for new products and services that help them save time, money and improve their quality of life. When it comes to gender split, Males form a more dominant population when it comes to electronic product rentals whereas females prefer to rent products in the fashion and kids category.
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