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Consumer Product Rental
First Research, April 2013, Pages: 10
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Brief Excerpt from Industry Overview Chapter:
Companies in this industry rent personal and household goods, primarily for short periods but also under longer-term arrangements. Major US companies include Aaron's, Netflix, and Rent-A-Center.
The US consumer product rental industry includes about 12,000 companies with combined annual revenue of about $23 billion. Moderate growth is forecast for the next two years. Key growth drivers include consumer spending.
Examples of products rented by companies in the industry include consumer electronics and appliances, DVDs, formal wear, home health equipment, and recreational goods.
Demand is driven by personal income and the timing and popularity of new movie releases. The profitability of individual companies depends on the right merchandise mix and inventory financing costs. Large companies have advantages in economies of scale in purchasing, distribution, and advertising. Small companies compete effectively by providing superior customer service and catering to local demographics. The industry is concentrated: the largest 50 companies account for about 70 percent of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include renting DVDs (about 35 percent of revenue); home health equipment (20 percent); and consumer electronics and appliances (10 percent). Other products rented include furniture, formal wear and costumes, party supplies, and recreational equipment.
In-store rentals account for about 80 percent of the DVD rental market, but other forms of distribution, including by-mail, kiosks, and digital streaming, are growing in popularity. Most video rental companies are small: retail chain franchises account for about a third of the video rental...
1. Industry Overview
2. Quarterly Industry Update
3. Business Challenges
4. Business Trends
5. Industry Opportunities
6. Call Preparation Questions
7. Financial Information
8. Industry Forecast
9. Web Links and Acronyms
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