4 Questions Before Considering the Rental Model

Traditional consumption models are running out of steam.

Environmental urgency in numbers

Fashion industry: an environmental disaster

For the fashion industry alone, more than 13 million tons of clothing waste are produced each year and a consumer throws away an average of 31.75 kilograms of clothing per year.

Not to mention that the fashion industry is one of the most polluting industries in the world. It is one of the main contributors to:

• Water pollution
• Plastic pollution
• Greenhouse gas emissions

Household appliances: systemic waste

This reflection applies to other consumer goods. For household appliances, for example, 55,000 washing machines are thrown away every month, just in the Île-de-France region alone.

Only 44% of household appliances are repaired and this figure drops drastically when the warranty expires*.

The paradox of underuse

Many consumer goods are purchased to be used only a few times a year:

Product	Average usage	Impact
Drill	12 minutes during its entire lifespan	Massive waste of resources
Vacuum cleaner	Once a week (sold every 10 seconds worldwide)	Obvious overproduction
EU electronic waste	60% end up in landfills	Major environmental pollution

Less than 40% of electronic and electrical waste is recycled in the EU, meaning 60% ends up in landfills**.

A solution exists: rental

Yet, other models exist and the market is ready: 76% of French people say they prefer renting a product rather than buying it.

Indeed, the rental model allows better use of resources and completely reshapes the customer relationship in a circular economy logic.

#1 — What are consumer expectations?

The awakening of ecological awareness

Consumers are increasingly concerned about the ecological impact of the products they buy.

More and more of them want to change their consumption patterns and expect brands to offer them sustainable solutions.

Numbers that confirm this trend

Thus, more than 62% of customers are ready to modify their purchasing habits to reduce environmental waste (compared to 57% in 2020).

Approximately 44% of consumers choose to buy products based on the company's sustainability values***.

Access trumps ownership

What matters is having easy and flexible access to it.

New consumers are increasingly thinking less short-term: they are buying fewer goods that serve little purpose to opt for other consumption modes that are more economical and responsible, such as rental and sharing.

#2 — Why offer products for rent?

An emerging market

Although many brands are launching their first rental offerings, the market is only in its infancy.

For fashion, for example, 70% of women aged 20 to 35 are ready to subscribe to a clothing rental service, while only 23% have already taken the plunge****.

Strategic advantages for businesses

What would be the advantages for traditional businesses to adopt the rental model?

Innovation and agility

• Rental is the driver of innovation: at a time when large companies are looking for agility, the rental model allows testing a new model at lower cost, offering customers access to an economical but good quality product, while preserving the environment.

Differentiating service

• This model allows relieving customers of the usual constraints related to ownership: the customer no longer has to worry about maintenance and repair. For companies, it's an opportunity to offer customers an additional and differentiating service. This applies to many products, such as clothing, but also sports items, transportation means (scooters, bikes and electric scooters or household appliances).

Customer base expansion

• Rental therefore allows reaching a wider clientele and moving away from pure product logic. Indeed, by offering a quality product, focusing on its use and providing additional services, the product becomes a service.

Resource optimization

• To increase product lifespan: offering products for rental means optimizing their utilization rate, which helps preserve resources and extend the use phase of products in a circular economy logic.

Strengthened customer relationship

• To develop a long-term relationship with customers: the rental model is radically different from the classic model and completely transforms the customer relationship. Indeed, it allows multiplying the number of contact points with customers throughout the contract and better retain them.

Predictable revenue

• To generate recurring and predictable revenue: by definition, rental is a long-term relationship, where it is easier to forecast and generate recurring revenue, unlike one-time sales.

#3 — What products to offer for rent?

A range of possibilities

Many products can be rented: clothing, furniture, children's items, household appliances, sports equipment…

Concrete examples of success

Fashion and textiles

Thus, many clothing brands have already launched their first offerings. Among them, we find:

• Tommy Hilfiger
• Burberry
• Jean-Paul Gaultier
• Patagonia
• Kiabi

Innovative household appliances

For household appliances, for example, the French startup Kazoo offers its customers to rent appliances only when they need them and return them when they no longer use them, all without commitment.

Starting at 29 euros per month, customers can choose from highly repairable products, with spare parts lasting more than 10 years and which are mostly produced in France and Europe.

Furniture and major retailers

Major brands like IKEA have also taken the plunge. To give its products a second life and optimize their usage duration, the furniture giant launched its own rental program.

Designed for short-term rentals (on average between 3 months and one year), the offer allows renting already assembled furniture and recovering them at the end of the contract.

Sports and mobility

To facilitate urban mobility, Decathlon launched Decathlon Rent, its long-term bike rental program, without commitment.

Everything happens online where the customer can choose from 5 bike models, including 2 electric ones, offered at attractive rates, ranging from 15€ to 75€ per month.

Decathlon plans to extend this model to other products and is currently testing rental of camping, fitness and climbing equipment on its platform.

Product selection criteria

For retail companies operating according to the traditional model, how to select items that can be subject to a rental offer?

Several criteria can be taken into account:

Criterion	Description	Impact on attractiveness
Product cost	The more expensive the item	More interesting for flexible access
Durability	Products designed to last with spare parts	Rental model optimization
Quality	High quality perception by consumer	Increased attractiveness
Usage	Occasional, short-term or seasonal	Perfect for rental vs purchase

Digital transformation and circular economy

In an era dominated by digital transformation, e-commerce companies and manufacturers must adapt to new consumer expectations.

The personalization of customer experience through websites is essential for successful optimization.

Personal data collected via CRM and information systems play a crucial role in customer retention and customer relationship management.

Circular economy at the heart of strategy

The circular economy model promotes reuse and recycling of raw materials, reducing waste and extending the end of life of products.

Websites and advertisements must reflect this trend, while automation and artificial intelligence strengthen the process.

In this digital environment, companies can effectively integrate these practices to reshape their business model towards a more sustainable and eco-responsible approach.

#4 — What technology to use to launch a rental offer?

The technological challenge

This is undoubtedly one of the most important barriers for traditional companies: how to implement a rental offer while overcoming technological obstacles?

The partner solution

Yet, there are solutions that allow launching a rental offer quickly, with controlled costs.

This solution is chosen by the overwhelming majority of major brands that have already launched their rental offer.

It involves partnering with a specialist in the field, who already has the technological solution and is capable of supporting ambitious projects.

Towards responsible consumption

To conclude the article on new consumption trends, particularly in the fashion sector, it is essential to focus on the transition to circular economy.

Companies must adopt responsible business models that prioritize:

• Reuse
• Recycling
• Waste reduction

Meeting environmental expectations

By offering durable products and optimizing resource use, they respond not only to consumers' environmental expectations but also to a market increasingly focused on conscious consumption and functional economy.

This involves a digital transformation of sales and communication channels to offer a personalized and connected customer experience, aligned with current ecological and social values.

The era of ecological awareness

In this era of ecological awareness, consumers actively seek sustainable alternatives to fast fashion.

The rental and reuse of clothing and accessories are part of a circular economy approach, thus reducing waste and garbage.

This trend marks a major evolution in the fashion sector's business model, where value is now found not only in the product itself, but also in its longevity and environmental impact.

Companies must therefore innovate and digitalize their approach to remain competitive in this new paradigm of green growth.

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Sources:

() European Parliament/Eurostat*

(**) ADEME

(**) IBM Study, January 2021*

(**) Neo Market Studies survey