Retailers, now is the time to start renting!

"Rental? Yes, but...". No buts! Of course now is the time to start renting, especially if you run a gardening, DIY, clothing or sports shop, or pretty much any other kind of shop, except perhaps an adult store. Still not sure? Lokki is on a mission and bets you'll change your mind.

1. Believe in the environment

If, like us, you're tired of eco-anxiety, the most effective cure for your nightmares is still to act. Alongside second-hand and CSR labels, rental is one of the most powerful sobriety habits a business can adopt. It helps reduce the energy and resources needed for industrial production by putting product use and recycling first.

As the French Agency for Ecological Transition (Ademe) points out, there is "no product whose environmental impact [is] zero, not even so-called ecological products". Whatever the process, every manufactured product requires extracting raw materials, which is closely linked to greenhouse gas emissions.

With global warming already reaching 1.2°C worldwide (compared with 1850), it is more than time to act.

As a real alternative to ownership and overconsumption, rental supports what is known as the "usage economy". And it's not just us saying so: it's the IPCC, the climate experts, for whom sobriety is one of the key levers "to reach carbon neutrality by 2050".

Not convinced by our little speech? Number lovers, this one's for you:

• We buy 60% more clothes than 15 years ago and keep them... half as long
• Industry accounts for 17.8% of greenhouse gas emissions (GHG)
• 70% of GHG emissions are linked to products (manufacturing, transport, use and end of life)
• Raw material shortages will affect 68% of French companies in 2022

Meanwhile*:

• 48% of French people regularly take part in collaborative consumption
• 72% of French people say they are ready to favour second-hand products or rental over buying new.
• If every country brought its material consumption in line with the average per-capita level of industrialised countries, it would be possible to limit global warming to below 2°C by 2100.

2. Generation rental

12 minutes: that's how long, on average, you will use your drill over your entire lifetime. We're not judging your DIY skills, but the figures speak for themselves. Dreaming of decorating your office? Then rent that famous drill.

And you won't be the only one jumping on this service. As a logical result of consumers increasingly looking for eco-friendly choices, the rental market is booming: 17 million French people rented equipment in 2021, that's 1 in 3!

It's also a solution that weathers crises, according to INSEE (the French national statistics institute).

In other words: unlike other major consumer trends (hello, fast fashion), rental is not about to run out of steam. Quite the opposite.

We told you we'd convince you!

3. Live differently

We don't want to labour the point, but still. Did you know that you can rent anything? Household appliances, high-tech, DIY, heavy construction, TV equipment and even clothing.

Apart from adult toys 🍌 (let's not go there), everything can be rented.

Proof: even France's flagship companies are getting on board! Michelin is even a pioneer of this model. The world leader in tyre manufacturing rents its tyres to hauliers based on the number of kilometres driven. The goal? To keep ownership of its products while providing upkeep and maintenance for its customers.

You don't sell tyres, but you're starting to be convinced. Here are Lokki's good ideas:

4. Rental for everyone

Selling is good. Selling AND renting is better! The advantage of a rental service is that it lets you meet other needs of your customers.

You can also offer two types of rental:

• Short-term rental, mainly for one-off or leisure needs. It requires careful stock management because of high turnover, and precise tracking of check-outs and returns

Examples: DIY, outdoor activities, parties and celebrations.

• Long-term rental (more than 6 months), often seen as a try-before-you-buy option. It's an additional service with remote maintenance, which requires setting up a monthly or annual direct debit and a secure long-term card pre-authorisation system.

Examples: bikes for commuting, scooters, household appliances, try-before-you-buy...

To rent or not to rent? We can tell you're getting itchy feet.

5. Yes, you can

OK. You still have doubts. Right, time to bring out the big guns. Rental is a classic "win-win". Customers are happy, and so is your wallet.

Renting means committing to the planet and adapting to today's consumer needs, but ALSO protecting your cash flow and growing your business.

With runaway inflation and rising raw material prices, which are also causing supply chain disruptions in every sector (most likely yours too), there's no doubt that you and your customers will cut back on spending.

Rental is therefore an excellent way to limit your purchases as a retailer and, for your customers, to get equipped without breaking the bank.

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To make it even clearer, here is our little win-win table:

And to end on a cultural note, as our friend Jeff Bridges, the iconic hero of The Big Lebowski, would say: "Sobriety and health are the best things".

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*Sources: Ademe, Insee, France Nature Environnement, BFMTV poll, AgileBuyer consultancy and the Conseil National des Achats, International Resource Panel (IRP)

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