Consumer Product Rental Industry Overview

Excerpt from Consumer Product Rental Report

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.

Competitive Landscape

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.