In my latest book, Seeing the How: Transforming What People Do, Not Buy to Gain Market Advantage, I emphasize the importance of looking through different lenses to identify marketplace opportunities. One of these lenses is titled "Go the Rental Route," and a simple way to activate that lens and see the marketplace with fresh eyes is to go down to your basement (or storage locker if you don't have one) and take a look around.

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As I go down to my basement, I see bins of children's toys in like-new condition that were perfect for a few months but are no longer relevant to my college-age children. I see a sleeping bag and tent from my two outdoor camping trips in the past decade. I see my workbench with many tools I used once, which usually differ from the tools needed for my next home repair. I see an Xbox, perfectly functioning computer monitors, headphones, and more. All like new but no longer "needed."

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Here are a few quick examples of how others have seen and seized these opportunities by looking through the "Go the Rental Route" lens:

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•  Loop, a toy rental company, has tapped into the market for short-term toy usage, providing parents with a cost-effective and sustainable way to keep their children entertained. They rent out toys, games, and puzzles for children of various ages.

•  Arrive Outdoors has capitalized on the growing demand for outdoor experiences by offering rentals of high-quality camping gear and equipment. They rent items such as tents, sleeping bags, backpacks, and hiking gear.

• Grover, an electronics rental platform, has made it possible for consumers to access the latest technology without the burden of ownership. They offer rentals of gaming consoles, laptops, tablets, and other electronic devices.

• Hilti, a leading tool manufacturer, has introduced a tool rental service, enabling professionals to access the right tools for specific projects without the need to purchase them outright. Hilti's customers simply rent whatever tool they need, whenever they need it, rather than having to own every single tool they might possibly need n their own stock.  

 

The shift this offering makes in customer experience is profound. People no longer automatically assume that ownership is always the best solution when addressing a need in their lives. For some, this is political. There is a movement to produce, have, and throw out less.

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For others, it's about simplifying their lives, and renting allows them to reap the benefits of a product without needing to find a place for it in their home when they're done. There are economic reasons as well. It is always going to cost less to rent something once than to buy it and use it once. And there are reasons that have to do with the speed at which improvements to tools are made. A company can do well to lease computers, knowing they will be used extensively for two years and that they'll be replaced at the point when their efficacy and ability to stay updated begins to decline. 

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The rental market is growing for several reasons. Renting offers affordability, flexibility, and convenience for consumers who need items for a short period or want to try products before committing to a purchase. Additionally, changing consumer preferences, particularly among younger generations, prioritize experiences over ownership. Renting also promotes sustainability by reducing waste and encouraging the reuse of items.

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So, look through the "Rental Route" lens next time you go down to your basement to start finding these disruptive opportunities. What items did you use for a short period and then stop, not because the product was no longer like new? What other products or services could be transformed by offering a rental option? By looking at the items you no longer use or need, you may uncover new markets and experiences that can transform industries and create value for customers in innovative ways.

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As seen in ANA Magazine.

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