Furniture plays a crucial role in homes and workplaces. However, moving furniture can be a tiresome task while changing locations. The whole process of buying furniture of high-quality costs a lot of money. High costs involved in the process boost the rapidly expanding market for rental furniture. In the rental furniture market, a rental or business can rent the necessary furnishings for a required amount of time. Moreover, long rental cycles that include subscriptions of 18 months to more than 2 years account for substantial revenue of furniture on rent revenue. These long rental cycles offer greater benefits when compared to short & custom cycles. New users tend to opt for shorter cycles and later, they upgrade to longer cycles after receiving satisfactory services.
Besides this, providing options within their price range, the rental furniture industry also allows people to experiment with new and fashionable furniture with little financial investment. In the past three years, millennial entrepreneurs had identified the pain points in temporary living, and furniture on rent has been operational for quite a long.
Other factors involved in the process are cross-border migration which has been occurring largely for a growing number of long-term international assignments. Also, a tremendous shift in population from developing to developed countries has been witnessed. This has further triggered the growth of rental apartments, where most of the owners prefer furniture on rent.
New Entrants Focused on Upgrading marketing techniques and offering furniture with appealing aesthetics
New companies are focusing on upgrading marketing techniques and making an effort to meet customers’ urban lifestyles by offering furniture with appealing aesthetics.
- Fernish, a california-based start-up rents out furniture to customers that lead mobile lifestyles on a subscription basis. This lifestyle brand has reinvented how the market views furniture rentals. It also offers a rent-to-own option that allows customers to put their prior payments towards the price of items they want to purchase at the end of their subscription.
Furniture on Rent Gaining Traction in Commercial Settings to Reduce Infrastructure Costs
Commercial enterprises account for a substantial share of the global market. Commercial organizations also act as key customers for furniture on rent businesses. To reduce infrastructure costs, small offices and pantries now prefer to purchase rented furniture pieces. Further boosting the commercial sector revenues will support the rising popularity of subscription-based furniture and technological appliance rental services. To reduce infrastructure costs, commercial settings, including small offices prefer to purchase rented furniture pieces.
Lack of Awareness about the Furniture on Rent Services Act as a restraint to the growth of the market
Demand for rental furniture and other household products is mostly restrained by the elderly population’s lack of awareness of these services. Moreover, inadequate advertising and a lack of information about the furniture rental sector are acting as a restraint to the growth of the market. Also, in the furniture rental business, it is difficult to provide customer service and maintain the furniture. In some developing countries, delivery methods can sometimes result in furniture damage, which annoys customers and costs the rental company money. Also, due to various issues such as a lack of room, storing the furniture presents significant difficulties. Other factors such as the presence of Termites and dampness can seriously harm wooden furniture.
In the last few years, significant investments have been made in the furniture on rent industry. Also, major firms and key players have been focusing on forging alliances with financial institutions to improve their working capital. These companies are also putting efforts into expanding their furniture rental options to increase their global geographic footprint.
In 2020, to establish its market share and extend its service and product offerings internationally, Feather, a rental furniture company based in the US, secured US$ 30 million Series B financing from investment banking firm Credit Suisse Group AG.