Next Generation sharing model

HOW DOES IT WORK ?

  • This model focuses on the rental market. Retailers offer product rental services for a fraction of the retail price in lieu of ownership of merchandise

  • The business owner will rent out items for a certain duration and charge a certain percentage of the retail price as the fee. Usually, an extra amount is charged as insurance during the rental period to cover any sort of accidental damage. Rental fees typically covers the service charges (i.e. dry cleaning) and other minor expenditures
     
  • When the order is placed, the product will be dispatched from company’s inventory with pre-paid pre-addressed package to return the item
     
  • This rental model is more suited for items whose need for it is temporarily created by an occasion, or high value items that are statement pieces. It is not as applicable for items that are a daily staple or are meant for long term use

bUSINESS IMPLICATIONS

  • Retailers would need to set up a robust system for tracking their items in order to prevent rental theft
  • Retailers would need to set up a more thorough quality assurance process
  • Rental businesses often cater to a specific geographical area

relevant sub-sectors

Consumer Electronics

Jewellery & Timepieces

Fashion & Sporting Goods

Furniture & Household

Close Menu
Bitnami