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Renting instead of buying: a new consumption model

Writer: Zhang Qian  | Editor: Lily A  | From:  | Updated: 2018-07-03

Clothes, handbags and toys rental is becoming a popular practice among young people as a new way of getting goods, the Shenzhen Evening News reported Sunday.

In Shenzhen, there is a group of residents who like to rent daily necessities like clothes, handbags, toys and mobile phones as this way of living gives them more choices while costing less, the report said.

For instance, according to prices listed on an online shopping site, one could rent an iPhone X for 13.5 yuan (US$2.04) a day with a deposit of 6,400 yuan. The daily rent of a Louis Vuitton handbag is only 29.9 yuan and a formal dress costs 87.7 yuan per day to rent.

A resident surnamed Tang said she happened to see a promotion of clothes rental in an online shop. All Tang needed to pay was 199 yuan and she could select any clothes every day for one month, she said.

“I become bored with my old clothes very easily, so the clothes I bought take up a lot of space in my home,” said Tang, adding that renting clothes not only helps her save money, but also gives her more options.

Another woman identified as Chen is one of the Tang’s cohorts. She has been renting toys for her 2-year-old child for more than a year now.

Chen registered for an annual membership on a toy rental platform for 2,888 yuan that offers her 24 to 48 rental toys a year. Compared with buying the same set of toys offered on the platform, Chen saves 30,000 to 50,000 yuan per year.

On Taobao.com, one of China’s largest shopping websites, one could find almost everything they need in life to rent.

A woman surnamed Wang who works at a financial company said renting items online lets her try expensive things, especially luxury brand handbags, before she buys them.

She rents handbags for one week to test out if she really likes them or not. “One time I wanted to buy a Gucci handbag, so I rented the same Gucci bag for 10 yuan a day for one week. I found the bag was too heavy, so I gave up buying the bag,” said Wang, adding that renting helped her avoid buying handbags that might lay idle after a short period of time.

However, troubles can arise when the rental items are damaged or when consumers worry about the items. Chen said she always worries about the hygiene of the toys she rents for her child. So she rented only large toys like swings or a slide.

It is also difficult for the rental companies to determine specific standards of compensation when the rental items are damaged.