Drawing on a survey of their consumer base, Geetansh Bamania, CEO & Founder, speaks of why renting is going to take off in the coming years especially in the cities of Mumbai, Bangalore, Pune and Delhi. The data is based on the cost of 1BHK ( living room furniture, bedroom furniture, 2 kitchen appliances).
"People today, don't want to tie their money in depreciating assets. With the promise of convenience, quality lifestyle & a nominal financial commitment renting is becoming a popular choice amongst individuals in metros and tier 1 cities."
Renting is best for: "Renting is the lifestyle solution that provides the best value for money, over buying new/used goods, especially for individuals with a 3 month to 3 year usage window."
Used goods buying: "Due to a lack of standardization of products, no quality ratings and a high maintenance overhead, used goods buyers have the highest episodes of frauds & bad buys. Disposing their used goods right before relocating, most individuals recover just about 25-30% of their original cost, due to the lack of time to wait around for suitable buyers."
Selling: "In metros & tier 1 cities, individuals spend anywhere between 10-20k to move their furniture & appliances. This comes with a high risk of damaging or losing your stuff as logistics providers or local vendors seldom provide transport insurance or reimburse loss due to damages."
And a few more quick facts
Market worth: "The furniture & appliance rental market in India is a good $6-8 billion. It is pegged to grow by 20-25% month on month because of friendly government policies."
Average amount a costumer pays: "Most Rentomojo customers place orders within the range of Rs. 2000-4000."
Market growth: "We're seeing a 20-40% month on month growth."