What's Mine is Yours. . .And Yours. . .And Yours. . .
The Sharing Economy and Renting Trends
Whether we are aware of it or not, almost all of us now participate in the sharing economy. Based on our most recent survey, 94% of the US population 18+ has participated in one way or another in the sharing economy. Have you used an Uber or Lyft? Do you stream? Have you used a co-working space or stayed at an Airbnb? If you answered yes to any of those questions, you are part of the sharing economy. All of those available services that allow us to use something without owning it and are subsequently parts of the sharing economy.
Most published articles and opinions so far have focused on claims that consumers have embraced this trend for many reasons: e.g. because they don’t like owning items, greater population mobility (especially among Millennials) which requires owning fewer items, variety, feeling of luxury in an affordable way or even because not owning is perceived as greener or as a way for consumers to “self express”. We wanted to test these claims, so we conducted a survey among 500 respondents in the US, 18+ who participate in the sharing economy. Out of the 500 completed surveys, we gathered 100 respondents who claimed that they have rented an expensive item (such as designer clothing/accessories, upscale furniture, technology etc.) for a short-term period rather than purchasing it.
Below are a few highlights from the report. You can also download the report by entering your information below.
Our data confirms that renting goods instead of owning, is another trend originating with and mostly confined to Millennials at this point. This trend is popular among the youngest, hippest urbanites. Specifically, our data shows that 64% of renters are between the ages of 18-38, and relative to non-renters, the they skew single (not married), employed, with higher incomes and living in urban areas.
Overall, the top categories they rent from are furniture (45%), gaming systems (37%), clothes (35%), tools (35%) and technology (33%).
Most prefer to rent items just to try them before they purchase them (57%), they need temporary solutions (55%) for short term periods (52%) or because they believe renting is less expensive (43%) and more convenient (42%).
For clothing, 77% of respondents indicated that they either rent or that they would rent for a formal event, while 54% would do so for a professional event. Only 21% have rented or would rent for everyday wear.
Our data indicates that this trend is likely to continue but may not be necessarily growing aggressively. Overall category net momentum (The percentage who said they will rent more in next 12 months vs. the percentage who said that they would rent less or not rent in the next 12 months) was +1%, and these numbers are the same among Millennials.