From fashion to furniture and high-end electronics, the world is moving towards a rental economy. Consumers are increasingly choosing flexibility over ownership, and businesses are cashing in on the opportunity to monetise temporary access to everything imaginable. Whether it’s renting designer handbags, smartphones, or even home gym equipment, the rental revolution is reshaping consumer behaviour.
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Why Own When You Can Rent?
The shift towards renting stems from multiple factors—economic uncertainty, sustainability concerns, and the desire for variety. Millennials and Gen Z consumers, in particular, prefer experiences over possessions, which has led to the rise of businesses that offer rental services as an alternative to ownership. According to a report by Research and Markets, the global rental economy is projected to grow to $335 billion by 2027, driven by consumer demand for convenience and sustainability.
Fashion and Luxury: A Borrowed Experience
Luxury fashion rental platforms like Rent the Runway and HURR Collective allow consumers to access high-end fashion without the hefty price tag. Rent the Runway, which was valued at $1.7 billion at its IPO in 2021, provides a subscription model where members can rotate through designer outfits monthly. This model not only makes luxury accessible but also promotes sustainable consumption by reducing fashion waste.
Tech Rentals: The Future of Electronics
Gone are the days when people needed to buy the latest smartphones or laptops. Companies like Grover in Europe and RentoMojo in India allow users to rent gadgets, from iPhones to PlayStation consoles. Grover, for example, has served over 2 million customers and reported a revenue of €145 million in 2022. With technology evolving rapidly, renting ensures users always have access to the latest models without long-term commitments.
Home Essentials: From Sofas to Gym Equipment
Even home essentials are up for rent. Brands like Feather and Fernish in the US offer stylish furniture rentals, targeting urban dwellers who move frequently. Meanwhile, fitness rental companies like Peloton and Gym+Coffee let users access high-quality gym equipment without the full investment. This model has been particularly successful post-pandemic, with Peloton reporting 2.97 million connected fitness subscriptions in 2023.
As consumers continue to prioritise flexibility, businesses across industries are capitalising on the rental trend. Whether it’s for financial ease, sustainability, or convenience, the rental economy is here to stay, redefining what it means to own in the modern world.
