EasyHome Market and Competitors

Part
01
of three
Part
01

Home Goods Financing Market Size

The market size of the Canadian RTO industry for the years 2010, 2015, and 2019 are estimated to be CAD$215.02 million, CAD$234.8 million, and CAD$214.1 million, respectively.

OVERVIEW AND MARKET SIZE

  • The rent-to-own (RTO) industry comprises vendors who offer new or used home furnishings, appliances, computers, and electronics.
  • Consumers are not required to make immediate payments for goods before receiving access to them. Instead, by signing a contract that entitles them to make periodic payments, they gain immediate possession of the items.
  • Depending on the terms of the contract, they typically gain ownership of such items within 1-3 years.
  • The consumers in the RTO industry are primarily those with financial disadvantages. Key players in the industry, such as EasyHome and Aaron's thus advertise their services as such.
  • The global RTO market had annual revenues of $8.5 billion in 2012, $7.9 billion in 2014, and $8.6 billion in 2015 and 2016.
  • As of 2015, there were over 9,900 RTO stores in 50 US states, Canada, and Mexico.
  • The market sizes of the RTO industry in Canada were estimated to be CAD$215.02 million, CAD$234.8 million, and CAD$214.1 million, in 2010, 2015, and 2019, respectively.

RESEARCH STRATEGY

We obtained the revenue of the global RTO market from 2012 to 2016 from APRO. However, we could not find similar details for the Canadian market and the specific years requested. We thus triangulated the information to obtain the size of the Canadian RTO market for the years 2010, 2015, and 2019, as provided in the section below.
Also, we used sources that are beyond Wonder's standard two-year timeframe for sources to because the request requires financial information that dates as far back as 2010.

CALCULATIONS

  • EasyHome generates 60-70% of the RTO market size in Canada. For this report, we have assumed EasyHome's market share to represent the average of 60% and 70%, i.e., (60% + 70%) / 2 = 65%.
  • We also assumed this market share to be constant for years 2010, 2015, and 2019 because EasyHome was and still is the market leader of the Canadian RTO industry.
  • As such, we determined the market sizes of the industry using the revenues of EasyHome in 2010, 2015, and 2019 to represent 65% of the RTO industry in Canada.
MARKET SIZES
  • In 2010, EasyHome's annual revenue was CAD$139,767 = 65% of the market size.
  • The total market size the Canadian RTO industry in 2010 = (CAD$139,767 x 100%) x 65% = CAD$215.02 million
  • In 2015, EasyHome's annual revenue was CAD$152,605 = 65% of the market size.
  • Thus, the total market size the Canadian RTO industry in 2015 = (CAD$152,605 x 100%) x 65% = CAD$234.8 million.
  • In 2019, EasyHome's annual revenue was CAD$139,175 = 65% of the market size.
  • The total market size the Canadian RTO industry in 2010 = (CAD$139,175 x 100%) x 65% = CAD$214.1 million.


Part
02
of three
Part
02

EasyHome Competitors

Aaron's, Rental City, City Furniture, National Rent-to-own, Simply Living, and Furniture City are six real competitors of EasyHome.

AARON'S

  • Aaron's is the next largest rent-to-own chain in Canada after EasyHome.
  • It has 50 stores and operates in all Canadian provinces except Quebec, Prince Edward Island, and Newfoundland.
  • Here's is the link to the company's website.

RENTAL CITY

  • Rental City is the largest regional rent-to-own vendor with 12 stores in Ontario.
  • Here's the link to the company's website.

CITY FURNITURE

  • City Furniture has five rent-to-own stores in British Columbia.
  • Here's the link to the company's website.

NATIONAL RENT-TO-OWN

  • National Rent-to-own has five rent-to-own stores in Ontario.
  • Here's the link to the company's website.

SIMPLY LIVING

  • Simply Living has a total of four rent-to-own stores across the provinces of Novia Scotia (three stores) and Newfoundland and Labrador (one store).
  • Here's the link to the company's website.

MAC FRUGAL'S

  • Mac Frugal's has three stores located in Ontario.
  • Here's a link to the company's website.

RESEARCH STRATEGY

We determined the actual competitors of EasyHome in Canada following a report which stated that EasyHome is the largest rent-to-own vendor in the country. The report then provided the next biggest stores (competitors) after EasyHome, with some details of their capacities.
Further, another article mentioned two of the competitors identified in the earlier report (Aaron's and National Rent-to-own) as competitors of EasyHome.
To obtain this information, we utilized a 2016 source that is beyond Wonder's standard two-year timeframe for sources. We did the same in the absence of useful sources regarding the research topic. However, we consulted a 2019 resource, which maintained that EasyHome is the largest rent-to-own vendor in Canada. As such, we assumed that the rankings of the other companies (competitors) are still the same.


Part
03
of three
Part
03

EasyHome Competitor Advertising

Aaron's and City Furniture are quite active in their display and video advertising. These companies had many active and past campaigns. Rental City, National Rent-to-Own and Mac Frugal's are smaller companies with less of an advertising presence. Simply Living had no advertising to analyze.

Aaron's

  • According to Moat, Aaron's has over 800 creatives in the digital space. This covers all stores, across the US and Canada. Unfortunately, it is impossible to tell which ads were only targeted to Canadians.
  • Some of its most recent digital ads are actually for recruiting staff.
  • Other ads are offering sales or boasting about its lending offers.
  • Two examples of current creatives are here and here.
  • Aaron's has several active video ads on Facebook. These take a different angle to its digital creatives, mostly featuring 'real' customers telling about how Aaron's has helped them.
  • Direct links to two video ads are here and here.

Rental City

  • Rental City only has six videos on YouTube, none of which are from the past year. There is no way of knowing where or how the videos were shown as advertising, but its most recent video, from June 2017, features a golf theme of staff members "putting 'fore' savings", then calls itself "Ontario's Home for Rent-to-Own".
  • Furthermore, there were no results on Moat for any further display advertising from Rental City.
  • This company does not have any current or past ads on Moat or Facebook to further analyze.

City Furniture

  • City Furniture has several display and video ads in the Facebook ad library. Most recently, its messaging centers around a President's Day sale.
  • Its two most recent video ads (here and here) feature a room being decorated with items from City Furniture and its Power Base bed base in action.
  • City Furniture has also run many display ad campaigns, available here.
  • Its most recent ads include those for individual products (specifically, the "stoney white chair"), President's Day, or a free $300 gift card with a Tempur-Pedic purchase.
  • One ad uses the tagline "Everyone Can Live Like This", but that messaging is not consistent across all ads.

National Rent-to-Own

  • National Rent-to-Own does not have any active Facebook ads.
  • This company also does not have any current or past display ads listed on Moat to analyze.
  • On YouTube, National Rent-to-Own has a lot of video ads, which we presume were aired locally.
  • Its most recent ad is from the most recent holiday season. The ad features "Home for the Holidays" and select products on sale or $100 off the first month's rent.

Simply Living

  • Simply Living does not even have an active website or social media account. Therefore, there was no display or video advertising to analyze.
  • This company also does not have any current or past display ads listed on Moat to analyze.

Mac Frugal's

  • MacFrugal's does not have any display or videos on Facebook.
  • This company also does not have any current or past display ads listed on Moat to analyze.
  • On YouTube, MacFrugal's has several videos, though most are quite old. Its most recent is from December 2018, stating customers can save up to 50% off purchases for one week only. The ad features a graphic stating, "We Value Your Friendship".

Research Strategy

Not all of the selected companies had display or video ads to analyze. We checked all known publicly available database for display (digital) and video ads, such as Moat, Facebook Ad Library and YouTube. For each company where no results were found, we also conduced general searches of the public domain for any examples or mentions of further display or video advertising. Simply Living is the only company where no results were found, which is likely because the company does not maintain an active internet presence (its website is non-functioning). Several of the brands only had quite old creatives, again likely due to the fact that they are very small, local businesses.
Sources
Sources