With the renting economy set to reach a market size of $335 Billion globally, it is no surprise that furniture giant IKEA also wants to be a part of this business. IKEA has always been known for providing affordable furniture solutions to people from different walks of life. However, the latest trend amongst the younger set of people is to rent out furniture instead of buying, and IKEA knows this. This is why they are planning to roll out their renting services in more than 30 countries all over the world.
IKEA began fleshing out its plans for renting furniture during the launch of its first sustainable store in Germany in 2017. As the company is strongly motivated by environmentalism and sustainable practices, the idea of renting furniture falls perfectly in line with the brand’s ideologies. According to surveys conducted by the brand, over 90% of its consumers do want to change their behavior but they are not sure how.
Moreover, according to Jesper Brodin, the chief executive of the Ingka Group, many of their consumers change their homes frequently. However, they cannot afford to change their furniture accordingly and often find themselves in a financially difficult situation. “You should be able to have a lovely home and a good conscience, and you should be able to afford it,” he said while talking about the same.
Ever since Mr. Brodin became a part of IKEA, he has been trying to overhaul the brand’s strategies in a way that also responds to climate change. By offering their renting services, IKEA can tie in together three of its business objectives quite effectively – being more affordable, ensuring the products are convenient and protecting the planet. The renting service is also a great solution for younger customers who already expect to be able to rent out anything they need like clothes or cars.
IKEA has already rolled out its rental services in the Netherlands. They offer students a bed, study desk, table and chairs for $33.
Speaking about the growth of rentals, Juvencio Maeztu said “In New York, London, Paris, Berlin, Madrid, Barcelona, Tokyo, Shanghai, Mumbai, we will see more of these mid-sized stores in the future,” He also said that “In the next 20 years, more people will live in cities and own fewer cars and share more.”
In India, furniture rentals are already becoming an accepted norm, with brands like Furlenco leading the way. Once IKEA’s services are also rolled out, the brand should already have a wide consumer base to appeal to. IKEA had opened its first store in India in Hyderabad last year and is going quite well.