Subscribing to household items is becoming a new way to consume.
It is being introduced by both startups and large companies.
Check some of the most successful examples from world practice.
Rent the runway
This startup was founded in 2009 by two Harvard alumni. Rent the Runway originally offered to rent a designer dress for a special occasion. If you are invited to a wedding, it is not necessary to spend $ 1,000 - it is enough to rent an outfit.
Now the range of Rent the Runway has expanded to casual, sportswear and office wear. You can rent any item you like separately or subscribe. For $ 100 a month, a user can rent eight items from the site, use them any time, and then exchange them for others. A favorite thing can be redeemed.
In 2019, the company reached a capitalization of $ 1 billion.
Indian startup Furlenco has been operating since 2012 and leases furniture, appliances, exercise equipment and other home appliances by subscription. There are enough product options on the site to furnish an entire apartment. The company produces furniture itself.
In July, the company raised a new round of financing by $ 140 million. Furlenco plans to enter the South Asian markets.
This Berlin-based project has been renting electronics since 2015. Grover's most popular offerings include iPhone 12 (for € 27.90 per month), GoPro and xBox. Here you can also rent laptops, tablets, drones, electric scooters, headphones, watches, digital cameras and much more. In total, the company has distributed 475 thousand devices during its operation.
The company now operates in Germany, Austria, the Netherlands and Spain. In July, it raised $ 1 billion.
Why is subscription growing in popularity?
There are several reasons at once.
People are used to changing things not at the moment when the old ones are out of order, but when they are tired or a new model has appeared. If you rent a smartphone by subscription, you can return it or exchange it for a new one at any time.
Service. Now users are interested in added value in the form of a service no less than the product itself: they receive product delivery and service by subscription. For example, by renting a car, a person receives scheduled maintenance, MOT and insurance.
The trend towards sustainability and awareness. Many people try to reduce their consumption, but still want to get emotions from new things. A subscription helps you to use what you need, but at the same time not to litter the apartment with items that are idle.