Generation Rent: How Millennials are Fueling the Rental Economy
Connect with us

Demographics

Generation Rent: How Millennials are Fueling the Rental Economy

Published

on

It’s long been said that millennials have the power to disrupt and reshape entire industries.

Most recently, this effect has been seen in the retail landscape, where millennial spending habits are setting the tone for the market’s future.

Not only does the millennial generation demand the convenience of making instant purchases—but they can now rent almost anything they want, anytime, and anywhere.

Visualizing the Growth of the Rental Economy

Today’s infographic from Adweek takes a deeper look at the consumer goods rental economy, and the potential long-term impact of this shift in buyer behavior.

Although the current market for rentals is still in its early stages, the sheer momentum that the industry has gained in the last year is enough to threaten even the largest retailers—forcing them to reconsider their own business models.

millennial generation renting

The data for the visualization above comes from market research company Lab 42. In a survey of 500 people, they found that 94% of the U.S. population has participated in the sharing economy in one way or another.

While the sharing economy spotlight typically shines on global behemoths like Airbnb and Uber, the research used to populate this infographic focuses on renting consumer goods for a short period of time, as a sub-segment of the sharing economy.

The Renting Revolution

Offerings within the rental sector have exploded over the last decade, with furniture being the number one category that consumers rent.

According to the infographic, reasons for renting furniture include:

  • Temporary housing: 45%
  • Expensive upfront costs: 43%
  • Testing products before committing: 41%
  • Hosting events at home: 35%
  • Moving into a new home: 29%
  • Redesigning a house: 27%

Other products that consumers rent include gaming systems, clothes, tools, and technology. Female renters are more likely to rent furniture, clothes, and jewelry, while male renters are more likely to rent tools and gaming systems.

Renting goods is predominantly done on an as-needed basis. The Lab 42 report states that for clothing, 77% of respondents indicate that they either rent, or would rent for a formal event.

The End of Ownership?

Despite the common misconception that millennials are driven by emotional needs, the reasons behind why they rent consumer goods are much more pragmatic.

  • Test things before purchasing: 57%
  • Need a temporary solution: 55%
  • Need an item or a service for a short time-frame : 52%
  • Less expensive than buying: 43%
  • More convenient than buying: 42%

Further, only 6% said that they rent because they do not like owning things. This tells us that the rental economy does not indicate the end of ownership, but rather, provides a strategy for consumers to try before they buy.

Attitudes Towards Sustainability

According to the research, very few millennials choose to rent consumer goods because it is better for the environment. However, Nielsen claim that 73% of millennials are willing to pay more money for sustainable offerings—impacting both retail and rental industries.

As evidence of this, Ikea will test a range of subscription-based leasing offers in all 30 of its markets by 2020 in a bid to appeal to environmentally conscious consumers and boost its sustainability credentials. If Ikea’s evolving business model is a success, it could open the floodgates for others to follow suit.

A Promising Market

In the clothing rental space, brands like Rent the Runway pave the way, but there has also been an explosion of startups entering the market in the last year.

One example is the monthly subscription service Nuuly. The company offers consumers access to over 100 third-party brands and vintage items. Consumers can borrow up to six items a month for $88. Similarly, American Eagle’s Style Drop program rents out the latest collections for a flat monthly fee of $49.95.

As more companies incorporate short-term rental services into their offerings, more millennials will shift their behavior from buying to renting—disrupting the traditional retail business model as we know it. With that being said, the impact of millennials having it all, and owning none of it, is yet to be determined.

Click for Comments

Misc

Mapped: Top Trending Searches of 2021 in Every U.S. State

From presidential elections, to cryptocurrencies and billionaires, here are the trending searches in every U.S. state in 2021.

Published

on

Map of trending searches in every U.S. state in 2021

The Trending Searches in 2021

Google’s data editor Simon Rogers once said, “You’re never as honest as you are with your search engine. You get a sense of what people genuinely care about and genuinely want to know.”

This look at trending searches for every U.S. state is a window into the topics people were truly curious about in 2021. From political tensions to meme stocks, and from Elon Musk to a devastating tornado, we saw a wide range of trending searches throughout the year.

In the above animated video, Reddit user u/V1Analytics pulls together the top trending search terms from Google’s 2021 Year in Search summary (for the period before mid-November 2021) and Google’s Daily Search Trends page (from mid-November to December 20th) to illustrate the daily trends for each state.

It’s fascinating to see what Americans were looking up this year.

Trending Searches Offer a Glimpse of American Psyche

In the year when COVID-19 vaccines became widely available, many Americans turned to the world’s most popular search engine to figure out how to come back to a life of normalcy.

In 2021, the search entries spoke to people’s interest in alternative assets like cryptocurrencies and NFTs, as well as persistent economic insecurity, evidenced by questions about when they would get their stimulus checks.

Entertainers and billionaires trended throughout the year, and so did topics of significant cultural impact at those moments in time.

Here is a look at the trending searches of 2021 and when they were searched most:

TopicTrending MonthsCategory
BidenJanuaryPolitical Figure
CapitolJanuaryMonuments
Mega MillionsJanuaryCulture
GMEJanuaryGaming
DogecoinJanuary, April, MayCryptocurrency
The WeekndFebruaryEntertainment
ValheimFebruaryGaming
Power OutageJune, July, AugustSociety
Stimulus CheckMarchSociety
Lil Nas XMarchEntertainment
DMXAprilEntertainment
Prince PhilipAprilFamous Personalities
Jake PaulApril, AugustContent Creator
AMC StockMay, June, AugustEntertainment
Jeff BezosJulyBusinessman
Simone BilesJulyAthlete
AfghanistanAugust, SeptemberCountry
Hurricane IdaAugustClimate Change
Gabby PetitoSeptemberCrime
Squid GameOctoberTV Shows
Alec BaldwinOctoberActor
Travis ScottNovemberEntertainment
Kyle RittenhouseNovemberCrime
AdeleNovemberEntertainment
TornadoDecemberClimate Change
Elon MuskDecemberBusinessman

Notable Trending Searches in 2021

Here’s a look at a few of the notable searches that trended across the U.S. in 2021:

President Biden and Capitol

Unsurprisingly, the year started with news of the presidential election and the U.S. Capitol riot, as President Biden was set to take office.

In six states, however, the top trending search was still related to the Mega Millions jackpot, even as individuals stormed the Capitol Building.

Valheim

One of the most sought-after games of the year, Valheim, came on the market in February, 2021. By August, it had garnered over 8 million users. The developing company’s new Hearth and Home patch has skyrocketed the game’s appeal even more.

Stimulus Check

In March, the U.S. government unveiled their plan to distribute the third stimulus check to Americans.

People started looking for more information about when they would be getting their checks and if there had been any changes in the amount they would receive.

Dogecoin

Created in 2013 as a parody of Bitcoin, Dogecoin saw record trading levels in May 2021. This was in part due to Elon Musk supporting the cryptocurrency.

The Dogecoin market capitalization surged to a peak of $88 billion, worth more than three-quarters of the companies in the S&P 500.

AMC Stock

After suffering significant losses due to the pandemic-related shuttering of theaters across the country, AMC Entertainment became a fan favorite of Reddit-based retail traders who drove the share price up beyond what most analysts considered reasonable.

AMC’s stock price rose by 95% in a couple of days, reaching a record high of $63 per share. This was the latest phase of the meme stock frenzy.

Afghanistan

President Biden decided to completely withdraw U.S. troops from Afghanistan by September 11th, 2021, ending the longest war the country has ever fought.

As an immediate consequence of the withdrawal, the Taliban militia took over the country and the government. The event, which was broadcast in near real-time, caused widespread panic among the citizens as some attempted to flee the country.

What’s in Store for 2022

It’s going to be everyone’s best guess as to what the trending searches for 2022 will be. Based on the events that dominated the news throughout the year, a few predictions could be made.

Experts predict that we will be moving to an endemic stage of the pandemic, which is bound to profoundly impact how we live in 2022.

New trends, movies, TV shows, and even newer gadgets will surely catch everyone’s attention next year. It will be fascinating to see what’s on the minds of people in the coming 12 months.

Continue Reading

China

Animated Chart: China’s Aging Population (1950-2100)

See why China is facing a demographic crisis in this animated chart.

Published

on

China’s Aging Population Problem

The one-child policy defined China’s demographic transition for over three decades.

But to combat an aging population and declining birthrates, the government scrapped the policy for a new two-child policy in 2016. Despite this massive change, China still faces a growing demographic crisis.

The above animated population pyramid from James Eagle looks at the distribution of China’s population by age group since 1950, with projections up to the year 2100.

How the One-Child Policy Created a Gender Imbalance

Until 2016, the Chinese government strictly enforced the one-child policy since 1979 with hefty fines for any breach of rules. According to the government, the policy reduced 400 million births over the years.

However, it also led to sex-selective abortions due to a deep-rooted cultural preference for boys. As a result, China’s gender balance tilted, with a sex ratio of 111 males to 100 females in the population aging from 0 to 4 years old in 2020.

Often termed “the missing women of China”, this shortage of women is expected to worsen over time. According to the U.N.’s World Population Prospects, China is projected to have around 244 million fewer women than men in 2050.

Additionally, the country faces another impending consequence of the one-child policy—a rapidly aging population.

Why China’s Population is Aging

In 2020, China’s fertility rate—the number of children a woman is expected to have over her lifetime—stood at 1.3.

Generally, fertility rates drop as economies develop. However, China’s fertility rate is now lower than that of the U.S. (1.64 in 2020) and on par with countries like Japan and Italy, both of which are facing aging populations. Consequently, fewer newborns are entering the population, while many in the workforce approach retirement.

Most Chinese workers retire by age 60. Here’s how China’s retirement-age population is expected to shape up by the year 2100:

Year60+ Population% of Total Population
198074,899,3857.5%
2000129,460,64810.0%
2021258,371,81017.9%
2050485,489,06634.6%
2070454,270,45836.1%
2100402,780,97237.8%

In 2021, people aged 60 and over made up nearly one-fifth of the Chinese population. As the country’s population begins declining around 2030, over 30% of all Chinese people are expected to be in this age group.

China’s aging population threatens long-term economic growth as its workforce shrinks and low fertility rates result in fewer newborns that would later enter the working-age population. Fewer working people means lower overall consumption, a higher burden on elderly care, and slowing economic growth.

So, how will China respond to the oncoming crisis?

The Three-child Policy

According to the 2020 national census, Chinese mothers gave birth to 12 million children in 2020—the lowest number of births since 1949.

In response to these results, the government passed a new law allowing each couple to have up to three children. Despite the change, the high cost of raising a child may deter couples from having a third child.

It remains to be seen how the three-child policy helps combat China’s demographic crisis and which other policies the government chooses to deploy.

Continue Reading

Subscribe

Popular