Days have vanished when you have to think twice and thrice to purchase expensive furniture. Buying a top class furniture means extracting a significant amount of money from your savings. It used to break your budget, and you had to compromise with other important expenses. But today, we will understand that the furniture rental market size in India has really up the space.
Many companies deal furniture on rent in Gurgaon and other metropolitan cities. Keyvendors is one of the foremost companies that deal in Renting furniture at minimal cost without negotiating product quality.
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Explore The Current Furniture Rental Market Size
We have seen massive growth in the furniture rental industry of India. As per reports, in 2020, the furniture market in India reached almost $41 billion. In this segment, nearly 164.767724 billion of furniture rental market size is a commendable growth of 5% of the total furniture market. Now people are conscious about making their homes and offices with furniture and decoration. In a study, it has been recommended that more than 80% of the regular furniture customers would move to renting the furniture. The furniture rental industry’s growth has been elevated over the years, like Mount Everest.
Furniture Rental Market Size in India: Top 5 Key Insights
Following are the important 5 key insights that excite and grow the furniture market rentals businesses.
1.Huge advancement in technology and innovation:
Today, we have witnessed a vast growth in technology and innovation. Nowadays, you don’t have to buy furniture at a furniture store. Plenty of options are accessible in online mode. Many e-commerce web portals are offering furniture on rent in Gurgaon and Delhi NCR. Buyers only need to visit the website and place their order with the necessary payment, and they will get their furniture items shipped to their doorstep.
2.Big contenders and competitive aspects:
Many big contenders in the furniture rental industry have been operating the business. Thankfully, there is no monopoly in this industry, so buyers don’t have the compulsion to stick to one company. A company that deals in furniture on rent in Gurgaon and Delhi NCR will only survive when it gives standardized prices with a reasonable budget. Keyvendors is also doing the same in the market. Because of several big competitors in the furniture leasing business, customers have lots of options to pick.
3.Eco-friendly and sustainability influence:
Today, when the world is concerned about global warming, climate changes, and other environmental effect on Earth, we also need to think about it. The furniture rental sector has embraced the idea and is using sustainable and eco-friendly goods.
4.Demand Variations in Residential and Commercial Needs:
Furniture on lease is not limited to residential use; as of now, many commercial players have adapted the furniture rental model for their infrastructure. Naturally, the renting furniture demand and revenue are way higher than residential. However, it depends on the company and its target customers. Many renting furniture companies focus on residential consumers; some of them target commercial, while many focus on both domains.
5.Demographic fluctuations: Furniture on rent in Gurgaon:
doesn’t need to have high customer engagement and demand, so it will remain the same in other cities. The demographic fluctuation in the market size of the furniture industry is obvious. However, as mentioned, the industry has spread its feet into the Tier II and Tier III cities, which naturally boosts their market size.
Factors That Boost the Growth of Furniture Rental Market Size in India
Plenty of factors are responsible for the furniture rental market size in India, and we must know what these factors are: –
Furniture Rental Companies Dropped Their Price:
Many businesses require re-establishment and customer engagement after the pandemic. That is why furniture rental companies have also decided to cut down the price of their items. The low price for renting furniture items has influenced more buyers and increased furniture market rentals business.
Furniture Rental Market Size Has Expanded Its Demography:
Earlier, almost before the pandemic, the renting furniture business was restricted to a few tier cities. But at present, the furniture rental industry has expanded its reach to Tier II and Tier II cities.
Corporate Organizations Invested in Rental Furniture:
One of the significant factors for the growth in the furniture rental market size in India is that many corporations and MNCs have invested in renting furniture for their offices. These companies find that renting furniture is more affordable than buying furniture.
In the next part of the article, we will discuss the top 5 key insights into the Furniture Rental Market Size in India:
Challenges of Renting Furniture Business in India
Despite magnificent growth in the furniture leasing business, that doesn’t mean it is easy and hurdle-free. Some of the challenges faced by furniture rental industries are:-
1.Limited reach: although the table, chair, and sofa renting industry is elevating its reach, there is a long way to go. Still, there are many cities and areas in which furniture rental has not introduced the leasing model of the furniture.
2.Still, There Is a Mindset of Buying Is Better than Renting: Many people still believe owning an item or product is better than leasing. It happens because they think that renting means they need to return the item when the duration is over. After that, they don’t have any possession right of the item. However, things are changing gradually. It resembles the debate about owning a property or renting a rental home. Both have merits and demerits.
3.High Competition in the Market: Many big and small contenders have invested in furniture on rent in Gurgaon, Delhi NCR, and other metro cities. Due to this, there is neck-to-neck competition. The price variation is next to zero sometimes. So, there might be a substantial decline in the profit margins of these companies.
4.Items Damaging and Inventory Management: Businesses occasionally have to handle broken goods that customer’s return, which can cause a slowdown in revenue. Some customers might bear the expenses of the loss, while some remain stubborn. So often, companies have to compromise while retaining and customers tolerate these losses and damages. Moreover, inventory management of these items is challenging. A person must be highly qualified to handle these entire inventories and finance management.
5.Handling Return, Refund, and Other Disputes: circumstances often arise when customers and the company get into arguments. These arguments can be about return, refund, and exchange policies. Handling grievances requires smart decisions, a customer-dealing approach, and conflict-avoiding skills. These exercises are essential for the companies, but everything will be affirmative with time.
Conclusion for Furniture Rental Market Size in India
Right from important insights and challenges of the furniture market rentals in India, we have described each thing precisely. However, one thing is confirmed: the table, sofa, and bed rental industry will reach a new height in upcoming years. Today’s furniture market rental size in India is almost $2 billion, and is expected to cross 3 billion by 2028. Moreover, if you wish to rent top-class, affordable, and eye-catching furniture for your office and home, please consider Keyvendors. It has always been a significant contender in delivering fantastic home services in India.