Tight squeeze: The rising number of online retailers has created intense external competition

The Home Furniture Rental industry serves various customers who lease or rent furniture products, including bed frames, couches, dining room tables and a range of other home products. The industry largely caters to individuals with an immediate short-term need, such as college students, or those who lack the necessary income or credit to purchase these big-ticket items. This industry is countercyclical to the economy, performing well in difficult economic times, when consumer confidence is low and consumer spending is minimal. Over the five years to 2018, customers have increasingly purchased furniture due to increasing per capita disposable income and consumer spending...purchase to read more.

Industry Statistics & Market Size
Revenue
$742m
Annual Growth 13-18
-1.3%
Forecast Growth 18-23
Profit
Employment
4,018
Businesses
934

Industry Threats & Opportunities

  • Per capita disposable income and the percentage of services conducted online are both anticipated to continue increasing
  • Mass merchandisers and warehouse clubs compete with rental companies mostly on smaller items
  • The industry is countercyclical to the US economy
  • Industry Report - Starting a New Business Chapter

    The scale at which the Home Furniture Rental industry operates presents a significant entry barrier to companies considering entering this niche industry. Rental furniture investment is a significant monetary outlay, requiring large amounts of capital to build up an inventory of furniture to rent to consumers. Even smaller companies that may have less diverse product offerings will be required to outlay capital for storage, transportation and warehousing. Moreover, operators in this industry must rent or purchase retail space to show product offerings and receive customers.Additionally, major companies operating in this industry have strong brand recognition. Bra...purchase to read more.

    Additional Insights for the Home Furniture Rental Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Home Furniture Rental Industry are

  • Having a broad geographic footprint
  • Having contacts and experience within key markets
  • Offering clients a range of payment options
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Percentage of services conducted online in the Home Furniture Rental industry impact industry performance..

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    What's in this report

    What is the Home Furniture Rental Industry?

    The Home Furniture Rental industry includes companies that rent or lease household furniture to lessees and homeowners. Rental furniture includes dining room, living room and bedroom furniture, as well as lamps, tables and television stands. This industry does not include companies that primarily rent household appliances, electronics or office furniture. Additionally, this industry does not include online retailers or online sales from brick-and-mortar locations.

    Industry Products
  • Living room sets
  • Dining room sets
  • Bedroom sets
  • Industry Activities
  • Renting or leasing furniture, lamps, rugs, art and sculptures
  • Providing delivery and pick-up services
  • Providing insurance (e.g. property, liability, warranty and damage waiver)
  • Providing consulting services, when bundled with the rental or lease agreement, and maintenance and repair
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Percentage of services conducted online
  • Access to credit
  • Rental vacancy rates

  • Current Performance
  • Decreasing demand
  • Increasing competition
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Unfavorable trends
  • Increasing competition
  • Industry landscape
  • Table: Home Furniture Rental Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Home Furniture Rental Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Furniture Wholesaling
  • Household Furniture Manufacturing

  • Products & Services
  • Living room sets
  • Bedroom sets
  • Dining room sets
  • Chart: Home Furniture Rental Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 25 to 44
  • Consumers aged 45 to 64
  • Consumers aged 65 and up
  • Consumers under the age of 25
  • Chart: Major Market Segmentation for the Home Furniture Rental Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases and depreciation
  • Wages
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Home Furniture Rental

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Home Furniture Rental Industry

  • Industry Globalization
    Rent-A-Center Inc., Aaron's Inc., Berkshire Hathaway Inc.,
  • Table: Rent-A-Center Inc. - financial performance
  • Table: Aaron's Inc. - financial performance
  • Table: Berkshire Hathaway Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Home Furniture 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 Home Furniture Rental Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per Capita Disposable Income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Rent-To-Own (Lease Purchase)
  • An optional form of acquiring ownership of merchandise by renting an item for a specified period of time without incurring debt or continuing obligation.
  • Rent-To-Rent
  • Companies that rent items without a purchase option.
  • Sub-Prime 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 Home Furniture 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 Home Furniture 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 Home Furniture 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 Home Furniture 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 Home Furniture Rental, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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