What are the benefits and barriers of the rental business model in the clothing, furniture and toy industries? A comparative case study analysis of Nuuly, Inlease and Tiny Earth Toys.

Details

Supervisors

Schuiling, Isabelle

Faculty

Louvain School of Management

Degree label

Master [120] : ingénieur de gestion, à finalité spécialisée

Abstract

The rising awareness of the environmental impact of over-consumption and shorter periods of product usage have led to the emergence of innovative sustainable consumption models. Among these, the product-service system is considered as a promising solution to shift from the linear consumption models to sustainable offerings by promoting reuse. One of its sub-categories includes the rental model which has started to emerge in traditional acquisition-based markets such as the clothing, furniture, and toy industries However, data on the implementation of the rental model in these three sectors, including the hurdles faced by companies and the different benefits this model deliver, on top of its environmental benefit is lacking. Therefore, this research has as objective to fill the gap by studying the benefits and barriers related to the rental business model in the clothing, furniture, and toy industries through a multi-case study analysis of three major businesses in the selected industries, namely Nuuly, Inlease, and Tiny Earth Toys. The companies, their offers, operations, customers, benefits, and barriers are analysed, through the analysis of various online sources and in-depth interviews conducted with the companies. The benefits and barriers identified for each sector were compared with the existing literature, and between each of them to explore their similarities and differences. The research concludes that the rental model delivers a multitude of key benefits to all stakeholders, with many similarities between the three rental industries, although with their own perspectives due to unique offers. Significant common and distinct barriers were identified as well, with some present since the beginning of the business model’s implementation, highlighting the importance of forms of collaboration and marketing. From these findings, recommendations have been proposed for further studies into the rental model in these emerging industries and others.