Rental business models continue to grow, and the retail sector will have to adapt to changes in the behavior of customers who increasingly rent things instead of buying them – is the message of the French startup Lisee.
This startup, whose clients are Adidas and Decathlon, makes it easier for retailers to start renting and reselling products. Startup helps them choose the best solution for them – subscription, rent by the piece, with or without the possibility of purchase.
As they say in the startup, the trade sector has become one of the most polluting industries. This causes major changes in the behavior of customers who begin to realize that they do not have to own things. The startups believe that sustainability and profit go hand in hand. They warn that the production of things will be halved in the next 25 years.
“Brands understand that it makes sense to do fewer things, but to make them of better quality to last longer. Manufacturing for reuse creates a different kind of margin. Products become resources. With new business models, brands and retailers can transform towards sustainability, clear inventory without discounts, attract new customers and increase margins, ”says co-founder Tanguy Frecon.
Rent instead of purchase
The startup offer comes at the right time. Merchants in France are facing regulations that prohibit the destruction of clothing, cosmetics, electrical appliances and other products that are not sold. The ban is part of a broad legislative package on waste prevention adopted by the French parliament last year.
That the end of product ownership is one of the key changes in customer behavior that retailers need to prepare for was pointed out two years ago by the Fashion Report prepared by the consulting company McKinsey.
The report notes that rental-based business models continue to grow. Consumers have shown a desire to change from traditional ownership to new ways to get products. The report suggested that Spotify has replaced CDs, Netflix video clubs and shows that customers prefer to rent rather than own.
When it comes to clothing, the report predicts a fundamental evolution in customer behavior in the years to come. This trend is partly driven by the desire of new generations for novelties while respecting the principle of sustainability. Renting, reselling and remodeling products extend the lifespan while offering customers a desire for novelty.
The attractiveness of renting lies in the exclusivity of the product, but also the excellent service. This means that the user can get a designer dress for the evening, personalized consultations, not to think about maintenance or storage space.
“The consumer pays only 20 to 30 percent of the price of the product. A retailer can rent a product 10 to 20 times creating new value each time before the product is sold for second hand use. This model helps companies reduce the environmental footprint by producing less. It also increases their social impact, “Frecon said.
Source: Energetski portal Srbije by www.energetskiportal.rs.
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