Gone are the days when buying, selling, shifting and having a reasonable living used to be a big problem. It is the 21st century and living today has become revolutionised. Development of technology has been pacing up to a certain level where things are now on your fingertips. You need something today, the next thing that will happen is that it will appear.  For instance, your hunger strikes at night, and then your food just appears, or you want to buy groceries but doesn’t want to step out, the grocery gets delivered …right at your doorstep.

The 21st century is a techno-style living. Now the time has changed from the time our elders used to live in. The needs today are totally different from what used to be then, the supply that used to be then is totally different than what it is now…people used to be just citizens then, now, we are digital citizens who live in a virtually close global world where everything is available for you at your fingertips be it wherever on the globe the place is.

The biggest contribution to changing the world into a small world for us all is an in-trend technology called ‘E-commerce’. E-commerce has brought the world in our hands, where everything from buying to selling has become easy and readily available on gadgets that one never thought would be using in future.

The emergence of the e-commerce as a Game Changer

Traditionally, e-commerce is associated with retail, but in India, it is increasingly being used to rent property, clothes, appliances, furniture and what not? Until fairly recently, it was still common for Indians to spend their whole lives in the same village where they were born. But increasing urbanisation has led to a far more mobile population, fuelling an increase in online renting.

Today, it is not just homes and office space that are being rented out online but the newest offering that has come in the market is renting home appliances, furniture etc as per your budget. There exist now a set of things that specialise in renting out furniture, appliances, cars on a monthly subscription basis.

Online rental entrepreneurs believe that the sector has the potential to beat online purchases. Others remain sceptical. However, to compete with this flaw of demand building, the e-commerce industry has brought in a challenge for others through an idea that sounds pleasing.

Become an owner while renting

It is observed that the rental economy cannot overtake purchases because the Indian mindset still leans towards ownership. Thus, there is a coming to an idea‘rent to own’where why not to offer an opportunity to the consumer to transform from renting a commodity to becoming an owner of the same. However, the idea is still fresh and needs some brewing but having it done can bring in a shift in the market by attracting many into an idea of becoming an owner.

What can be the benefit of owning while renting?

The benefits can be numerous, like: If you are a salaried job person, it is quite obvious that shifting becomes a problem. Even though you plan to settle somewhere until and unless there’s a surety you will always prefer to invest in a commodity in a lesser manner but at the same time you would prefer to own it as well.

Thus, offering a position where you can for a few months get to use the commodity and experience it which later can be owned by you as well with just a minimal charge.

Pay less and get commodities that are quality checked by you while you’ve used them during the rental period. Online commerce is highly capable of attracting demand; people are getting used to doing everything on the mobile phone. But customer retention works differently for rentals.

The e-commerce connection

Online commerce is highly capable of attracting demand; people are getting used to doing everything on the mobile phone. But customer retention works differently for rentals

But, do horizontals have an edge over vertical platforms?

In categories requiring specialisation, localisation and supply-chain capabilities, the vertical model would be in a better position to serve the customer profitably. In lower involvement categories, including peer-to-peer platforms, horizontal models could flourish.

Future possibilities

Many online rental entrepreneurs believe that the sector has the potential to beat online purchases. They say that the rental space is only a small market in India, and will not bother mainstream e-commerce. The rental economy cannot overtake purchases, because the Indian mindset still leans towards ownership.

In India, the second car for a family might be substituted by rentals, and in a decade or so, online rental vehicles will change the sector for good.  Rentals may not beat purchases, but the growth is definitely promising. Categories like furniture, vehicle sharing, books and music will grow in peer-to-peer platforms. Along with these, in rentals, durables and personal goods such as apparel work too.

The hope remains that a good number of early customers will influence the behaviour of the masses but the bigger question that poses is ‘How will the consumer behave towards the rent to own proposal, will they be ready to take it as a power or it just appears as a bluff?