Why Furniture Rental Companies are Failing? ????????

Merci ! Partagez avec vos amis !

Vous avez aimé cette vidéo, merci de votre vote !

Ajoutées 8 mois by

31 Vues

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.