Make the switch to renting goods

If this really is the sharpest economic downturn in more than half a century, can clever consumers ease their cash flow by renting as many goods – both standard items and luxuries – instead of buying them? Most rental companies certainly seem to think so.

Take the website erento.co.uk, for example, which launched in the United Kingdom last year and now rents out everything from clothes to holiday houses in more than 45 countries, including the UAE. It calls itself "the world's fastest growing online rental marketplace", as a key factor in the 92 per cent rise in site traffic recorded in January.

The figure emerged as Britain's Office of National Statistics (ONS) confirmed the sharpest slowdown in consumer spending since the second quarter of 1991, with the 4.5 per cent fall in production output – mainly in manufacturing – the worst since 1974.

Says erento Director Clinton Paterson: "So many things can be rented to save money. A Prada handbag is a fine product to enjoy for £15 (Dh90) per night, and next month, try another for £15. Much better than buying at, perhaps, £1,000 each.

"Or you can try a different sports car each weekend, ranging from £250 for a standard model to £10,000 for a Ferrari or Lamborghini worth half a million pounds."

For many of the 500,000 items available on the website, Patterson notes that demand is continually rising, despite the credit crisis.

"Given the slump in retail sales and the surge in our traffic, there may have been a profound movement towards renting instead of buying across a whole range of products," he says. And he has the figures to prove it.

The website generated €505 million in hire fees for 9,200 hire companies on its site, with 2008 turnover up 170 per cent on 2007. Around 53 per cent of hires are by firms, 47 per cent by households.

Sarah Gartside, a spokeswoman at the UK consumer body Which?, says: "Although we have examined the economics of renting in recent years, websites like erento are a sign that people are more interested in the idea."

And it is not just international rental companies that are benefiting from the current economic downturn. Many UAE-based outlets are also witnessing an increase in demand.

Emirates Business first attracted attention to luxury bag-rental website Mapochette.com at the beginning of this year. Nearly a year after launching, the company – which was founded by Danielle Wilson and Sarah Eccleston and loans big name brands such as Louis Vuitton, Juicy Couture and Miu Miu – has gone from strength to strength.

"We went from an average 100 unique hits a day six months ago to about 2,500," says Wilson. "We now have more than 10,000 active women on our database – that is more than 100 per cent growth. Deliveries average about four to eight a day."

Eccleston adds: "It is just a great concept. You can have anything you want but without having to take out a mortgage. I think it is the ultimate credit crunch shopping."

Another website gaining popularity is Hotcoldrental.com, which specialises in photography equipment and studios. Set up by three years ago after noticing a gap in the Arab market, the website not only caters to professional photographers, but to individuals interested in improving their photography skills.

"In the present economic climate, renting equipment is a good way of lowering overheads," Richard Butterfield, Co-founder, Hotcoldrental.com, tells Emirates Business. "The credit crunch has done rental companies a favour.

"And we hire out equipment to everyone – there are the professionals who have been working as photographers for years, for example, and they rent when they're on assignments out here.

"But we also supply cameras to those who are just getting into it. A good starter digital camera starts from Dh200 per day, which is great if you just want something for a special occasion or for the weekend."


Pay the rent here

- ERENTO

Categories include vehicles, boats and aircraft, as well as audio equipment and holiday homes.

www.erento.co.uk

- DUBIZZLE

Not a direct consumer rental portal; however, many classifieds offer the option of hiring products

www.dubizzle.com

- MOVIEBANK ME

One of the UAE's premier DVD rental companies.

www.moviebankme.com

- MAPOCHETTE

The region's version of Bagborroworsteal.com, offering one-day or three-day luxury handbag rental

www.mapochette.com

- RENT-A-CRIB

Offers a range of baby, toddler and child equipment

www.rentacrib.ae

- HOT COLD RENTAL

 A beginner or professional photographer's haven, this site offers deals on everything from cameras to studio facilities, including a huge range of Profoto equipment

www.hotcoldrental.com

- AUSTIN PARFETT?FOUNDATION

Hire of de-watering pumps and access-ories... etc

www.austin-parfett.com

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