Why Furniture Rental Companies are Failing? 🤔🤔

Furniture Rental companies in India are struggling to survive. Furlenco for eg, has been in business for 14 years now and is still a loss-making company.

Now, there are two main reasons behind this, low margins and slow growth.

See, rental products lose value as soon as they are bought, so these companies have to spend a ton of money to refurbish them and give them to a new customer.

This refurbishment cost alone is 30% of the total expenses of these companies. And if you include transport and delivery charges, debt financing, marketing, and salaries, then there is very little margin left as profits.

The second reason is slow growth, see now because of features like no-cost EMI on e-commerce websites, it costs almost the same per month to own a product rather than rent it, and this is hampering the revenue growth of these rental companies.

Furlenco’s projected revenue for this year was 500 Crore Rs, but the number finally was only 139 Crore Rs.

[OmPrakash-icsd]

I believe these companies need to shift to new business models and start different profit-making ventures in the furniture industry, like becoming the second-hand furniture marketplace.

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[Sympl]

Never heard of such companies, because never needed

[ashutoshgupta]

Renting only makes sense for short term and if you don't want any additional luggage when moving out. People planning to stay long term will always buy instead of rent

[abhrabhai]

They are a life saver for me... specially folks who move often...

[rayansailani]

In India, furniture like other things to own has sentimental value (like who doesn’t remember “dada ki chair”).
So a lot of people wouldn’t want to rent!

[yogishax]

If iim graduate starts selling dry Gobar, VCs would fund even that business.

[Yesaps]

I had searched for furniture on these renting comapnies and the cost was too damn high! Also u cant pay monthy you have to pay upfront for one year which makes the very purpose of renting useless! Instead so much money can simply be used to buy those furniture and sell it off after a year and it will cost u half of renting them!

[soumyadeepdas]

Exactly. Few months back was going to take a king sized bed at my rental house. Now I can take it on rent from Furlenco, or can directly buy it. But renting it from furlenco would have costed me around 8000-9000 rupees for the entire year, and buying a new bed on no cost emi would have costed me 11k, and the bed would be mine forever. Hence went to buy the bed completely.

[vickeyshetty]

I rent my furniture, just because of the uncertainty of my purchase. I don't want to fully commit, as I might have to shift my place from time to time, and my rental company does free relocation. I can furnish an entire house for a fraction of the cost.

[MarcSpctr]

I still think that there is definitely a market for these companies.

Like everyone knows how expensive it is to Move furniture (especially if you change cities).

then on top of that moving furniture almost always damages something or the other.

Plus, even if you own a furniture, you have to spend money for moving it and also if not moving then have to find a buyer to sell.

so people who do not want all these tension and their companies provide them benefits for renting such essential furniture, would still rent the furniture.

They need to tie up with companies to provide furniture as part of their "EMPLOYEE BENEFITS" like rent, utility bills, etc

[harikrishnanp]

What about rentomojo? I heard its profitable and expanding to new cities

[prathameshmore]

Furlenco is an awful company there Customer service is pathetic. And also you have to pay full amount in the beginning which doesn't make any sense if you want to rent.

[NavalKishoreBarthwal]

bro furniture monthly rent is so high.. I would prefer EMI

[mohitkumar]

It is same for renting clothes.
People only rent clothes when they want very expensive clothes but for very short time .
And people don't rent clothes. There is only very low percentage of people and it can not be scaled.

[adhirajsarker]

I never rented any furniture, nor will I ever.

Renting furniture only makes sense if you’re staying at a place for 3 months. Beyond that, buying new and selling off, or buying a second hand furniture is more economical.

[mandarchoudhari]

Furlenco has worst service in the world….

I would love if they closes soon..

[advaitha]

14 years and loss making? Blackmoney or something else?

[greentechkey]

Never needed those. The reason is if I need to stay for short term I can book a good PG with all amenities. If I need something for long term then I can just buy it on EMI

[e.]

Until and unless they cut their monthly rental cost by half it's doomed to fail.

[personal_utube]

Furlencos marketing sucks. Their ads don't make any sense at all. Normal customers would never buy after watching those ads.