Changing channels: Rising acquisition activity will boost industry profit margins

The Consumer Electronics and Appliances Rental industry largely caters to individuals with an immediate short-term need or those who desire to purchase these big-ticket items, but lack necessary income or credit. The macroeconomy plays a significant role in determining demand for industry services. When economic conditions are difficult and consumer confidence is low, many consumers rent industry products to delay purchasing until the economy improves. During the five-year period, expansion and acquisition activities have concentrated the industry. Aarons Inc. solidified its position as the industry's top player by opening hundreds of kiosks at traditional retailers, enabling consumers who do not qualify for retailer financing to take advantage of their rent-to-own model...purchase to read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 13-18
3.0%
Forecast Growth 18-23
Profit
Employment
23,547
Businesses
8,674

Industry Threats & Opportunities

  • Expansion and acquisitions have made the industry more concentrated
  • The industry was left relatively unscathed by the new financial regulatory reform
  • Rising credit rates could further hinder lower-income individuals’ financing activities
  • Industry Report - Industry Products Chapter

    The Consumer Electronics and Appliances Rental industry rents out consumer electronics, appliances and computers on a weekly or monthly basis. Rental-purchase agreements typically permit the customer to purchase rented merchandise outright, though many companies require several days minimum of rental beforehand. Aaron's Inc., the second-largest player in this industry, differs in that it enables customers to make outright purchases initially, blending retail and rental business models. Others have been quick to adopt this methodology, including Sears and Kmart, which began to offer rent-to-own programs in 2014. Most of the products sold and rented by this industry have very short life cycles and rapid technological improvements...purchase to read more.

    Additional Insights for the Consumer Electronics & Appliances Rental Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Consumer Electronics & Appliances Rental Industry are

  • Use of centralized purchasing and inventory
  • Effective repossession activities
  • Locations near customers
  • IBISWorld analysts also discuss how external factors such as Poverty rate and Access to credit in the Consumer Electronics & Appliances Rental industry impact industry performance..

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    What's in this report

    What is the Consumer Electronics & Appliances Rental Industry?

    Companies within this industry rent or lease consumer electronics and appliances including DVD players, refrigerators, computers, stoves and TVs. Most industry transactions are through rental-purchase agreements that enable customers to take ownership of merchandise after an agreed-upon rental period. Companies that primarily sell electronics and appliances on a retail basis are excluded from this industry.

    Industry Products
  • Appliances
  • Electronics
  • Computers
  • Household Furnishings
  • Office electronics/machinery
  • Industry Activities
  • Consumer electronics rentals and leases
  • Appliance rentals and leases
  • Computer rentals and leases
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Poverty rate
  • Access to credit
  • National unemployment rate
  • Per capita disposable income
  • Price of household appliances

  • Current Performance
  • Industry landscape
  • Beating the regulation drum
  • Expansion and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Credit conditions
  • Restructuring
  • Consolidation
  • Table: Consumer Electronics & Appliances Rental Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Consumer Electronics & Appliances Rental Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Computer & Packaged Software Wholesaling
  • Heating & Air Conditioning Wholesaling
  • Refrigeration Equipment Wholesaling
  • TV & Appliance Wholesaling

  • Products & Services
  • Electronics
  • Household Furnishings
  • Appliances
  • Office electronics/machinery
  • Computers
  • Other
  • Chart: Consumer Electronics & Appliances Rental Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Household incomes between $24,000 and $50,000
  • Household incomes between $15,000 and $24,000
  • Household incomes less than $15,000
  • Household incomes between $50,000 and $75,000
  • Household incomes greater than $75,000
  • Chart: Major Market Segmentation for the Consumer Electronics & Appliances Rental Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesDepreciationWagesRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Consumer Electronics & Appliances Rental

  • Basis of Competition
    InternalExternal
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Consumer Electronics & Appliances Rental Industry

  • Industry Globalization
    Aaron's Inc., Rent-A-Center Inc., Sears Holdings Corporation,
  • Table: Aaron's Inc. - financial performance
  • Table: Rent-A-Center Inc. - financial performance
  • Table: Sears Holdings Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Consumer Electronics & Appliances Rental Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Consumer Electronics & Appliances Rental Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Poverty rate (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Consumer Electronics
  • Durable electronics including TVs, media players and stereo equipment.
  • Rental-Purchase Agreement (Rent-To-Own Contract)
  • A type of flexible purchase agreement that enables a customer to take ownership of merchandise after an agreed-upon rental period.
  • Same-Store Sales
  • A retail measure used to assess the true performance of retail outlets by taking out the effect of new store openings and only considering sales growth of existing stores.
  • Subprime Customer
  • A consumer with a poor credit score, typically including consumers with FICO scores lower than 640.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Consumer Electronics & Appliances Rental Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Consumer Electronics & Appliances Rental industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Consumer Electronics & Appliances Rental:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Consumer Electronics & Appliances Rental market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Consumer Electronics & Appliances Rental, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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