Starting an equipment rental business, whether bikes, scooters, skis, DIY tools or even construction equipment, can be a promising move at a time when there is an urgent need to consume less. But to avoid the pitfalls, market research is essential. This step lets you check that your project is feasible, understand your market and build a solid strategy. Let's walk through it together.
Why carry out market research for equipment rental?
Market research gives you essential data on your commercial potential and helps you spot opportunities while heading off risks. It is the key step to tailor your offer and make the most of your resources from day one.
1. Understand how your target customers behave.
Each type of equipment attracts a specific customer profile. For example, tourists often look for short-term leisure rentals (bikes, scooters, ski gear), while construction professionals prefer longer periods for site equipment. To learn more about consumer habits in tourism in France, see the reports from Atout France (the French tourism development agency) and data from INSEE (the French national statistics institute)
French Ministry of the Economy and Finance.
Coach Lokki's tip: Map out the customer journey! Depending on your targets, identify extra services, such as delivery straight to the site for professionals or ready-made tourist routes for holidaymakers.
2. Analyse the competition
Studying the players already in place helps you gauge market saturation and find a unique positioning. For example, if you are thinking of launching a scooter rental business in a crowded urban area, look at what sets existing services apart (insurance included, breakdown service, prices adapted to locals and tourists).
Lokki tip: Use tools like Google My Business to see how many competitors operate in your area, what services they offer and what customers say about them, then adjust your offer.
3. Plan for profitability and seasonality.
Anticipating these swings helps you manage your cash flow and plan seasonal strategies, such as promotions during quiet periods.
Rental demand varies by season and region. For example, mountain areas see a peak in ski rentals in winter, while bikes and scooters are in higher demand in summer, especially in French tourist cities such as Nice, Marseille and Biarritz (source: Insee)
Coach Lokki's tip: Plan your cash flow around the seasons and, if possible, diversify your equipment to cover different types of demand.
The key steps of successful market research
1. Industry analysis and market trends.
Start with an analysis of current trends. The equipment rental sector is growing strongly in some segments, especially eco-friendly equipment and digital tools that make online booking easier. For example, according to a report from the Observatoire des métiers, demand for sustainable equipment such as e-bikes and scooters is rising because of environmental regulations in many French cities.
Useful sources: INSEE for data on industry trends, Atout France for the tourism market, and Meilleure-Innovation on current trends in innovation and mobility.
2. Customer research
Segmenting your customers is crucial, because individuals, businesses and tourists behave differently. For example, a typical bike rental customer is often a tourist passing through, while small construction firms may be looking to rent site equipment.
Coach Lokki's tip: Don't hesitate to run online or in-person surveys to get first-hand data. Polls on social media or tools like Google Forms are good ways to pin down what your potential customers expect.
3. Competitor analysis
Identifying the strengths and weaknesses of the businesses already on the market helps you position your offer. Look at your competitors' prices, services (delivery, insurance options) and rental terms. This helps you find ways to stand out, such as online booking, 24/7 customer support or lower rates for longer rentals.
Useful tools: You'll find plenty of information on this topic on our blog. And the APCE website (Bpifrance's French business creation portal) offers guides and resources for an in-depth competitor analysis.
4. Choosing your location and accessibility
Choosing your location is decisive for the visibility and accessibility of your service (we wrote a dedicated article on this!). For leisure rentals, aim for tourist areas or town centres. For more specialised equipment such as construction gear, think about industrial zones. Tools like Google Maps and footfall data from DataTourisme (France's open tourism database) can help you assess an area's potential.
Coach Lokki's tip: Maximise the visibility of your rental point by choosing locations close to public transport or busy spots, such as train stations or tourist centres.
5. Test your business model
Market research lets you test your business model by adjusting prices, estimating costs and calculating potential revenue. This phase is essential to set competitive prices and secure long-term profitability. Use financial simulation tools such as those from Bpifrance (the French public investment bank) to calculate your project's profitability and margins.
Lokki example: Using rental management software such as Lokki helps you track your margins and bookings in real time, so you can adjust your strategy quickly.
Data sources for your market research
1. Public data sources
INSEE and the Observatoire des Métiers publish statistics on tourism, consumer trends and demographics in France, while industry reports from the APCE give an overview of key sectors.
2. Field surveys and interviews
Run online surveys and interviews to understand what your future customers need. Platforms such as SurveyMonkey or Google Forms make it easy to create and share questionnaires.
3. Using online tools
Tools like Google Trends let you track user interest in keywords related to your business. Customer review platforms such as TripAdvisor and Yelp can also give you feedback on existing rental services in your area.
Conclusion
Market research is a crucial step to launch your equipment rental business successfully. By understanding what your market needs, targeting your customers precisely and analysing your competitors, you maximise your chances of success. With reliable data and a well-thought-out strategy, you are ready to win over and retain a customer base that keeps changing.
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