THE business of renting has thrived in the face of the economic downturn when people’s purchasing power was reduced.
Yesterday’s Southern Metropolis Daily said the nation’s largest rental company opened an office here last week with an eye on the great growth potential for the business.
“Businesses are doing well here,” said Jiang Hongwei, CEO of Bangjia Renting, which opened its first Shenzhen outlet in the Caiwuwei commercial area last week.
Jiang said cars were so far the most popular items in the market. “We don’t have any cars in stock now. All the cars were rented out right after they were shipped here.”
Jiang said almost all consumer goods were available for rent — cars, mobile phones, electrical appliances, furniture and luxury handbags — “you name it, whatever.”
He is very confident of the business. Consumer spending in China amounted to roughly 150 million yuan (US$) last year, but only 1 to 3 percent came from the rental business, he said. “The percentage is low compared to the business in Western developed countries where the percentage can be as high as 30 percent.”
He said rental business in the United States jumped 35 percent last year when the country was hit hard by the economic crisis. “The growth potential is superb once the idea of renting — for example a purse — instead of buying is widely accepted.”
He said Shenzhen was unique in the sense that most of the population comprised young immigrants. “They are likely to leave for other cities when there’s a better job opportunity elsewhere. It’s a better option to rent rather than to buy, in the short term.”
Many people said they were interested in renting, according to the Daily.
A woman surnamed Du said she was going to rent a car after learning that the monthly cost of renting an Audi sedan was 8,000 yuan with insurance and other fees included.
“I’ve always wanted to have a car to commute between home and work, but I don’t feel like spending several hundred thousand yuan on one yet.”
But some residents said it’s more economical to buy the goods in the long term. “Not like a purse that you might want to change for a new one once in a while, products like furniture are used for a longer period of time. It’s better to buy than to rent.
(Li Jing)