EasyHome Market and Competitors

Part
01
of three
Part
01

EasyHome Competitors

As EasyHome moves in to the US market, they will face competition from existing giant rent-to-own distributors, millennial focused start-ups, and business conglomerates. Six competitors have been identified to give a snapshot of the domestic furniture rental market and help EasyHome position itself in this growing sector.

The Competitors

  • Rent-a-Center, https://www.rentacenter.com/
  • With the largest physical footprint in the US rent-to-own marketplace since 1986, Rent-a-Center employs 18,000 people across 2,000 stores in the United States, US territories and Mexico with 7 unique brands, and recently acquired a digital platform in Merchants Preferred, a virtual lease-to-own provider.
  • They tout many of the same benefits over credit and layaway as EasyHome, such as flexible payment options, free delivery and repairs, and no credit needed.
  • Their customer focused model has helped propel them to $2.7 billion in revenue from Q3 2018 to Q3 2019. Their size and domestic saturation makes them a challenge to EasyHome's expansion.

  • Aaron's, https://www.aarons.com/
  • Founded in 1955, Aaron's operates it's lease-to-own furniture, electronics, home appliance and accessory marketplace in 1,600 stores in 47 US states and approximately 15 in Canada as well as an online store at their eponymous website.
  • Aaron's also owns Progressive Lending, a virtual lease-to-own company, that provides purchase solutions at 20,000 retail locations in 46 US states. Aaron's finished 2019 with record annual revenues.
  • Like EasyHome Aaron's takes customer service a step further with a loyalty program that provides lease protection benefits such as involuntary unemployment and accident payment waivers, discount medical services, as well as rental car and hotel discounts. Like Rent-a-Center their size and history makes them a formidable competitor to EasyHome. Their loyalty program also offers many of the same benefits offered by EasyHome that could make inciting customers to change services more difficult.

  • Buddy's, https://www.buddyrents.com/
  • Buddy's is the largest independent lease-to-own dealer in the US, and 3rd largest overall, with over 330 physical locations. Of these, nearly 90% are operated by franchisees. Started in 1961, Buddy's touts itself as "the fastest growing rental-purchase and lease to own company in the US".
  • Buddy's was acquired by Liberty Tax in 2019, with an enterprise value of $122 million. Buddy's franchise operation and new management provide a challenge to EasyHome's entry in to the US market, particularly in the southern US.

  • CasaOne, https://www.casaone.com/
  • Started in San Francisco in 2017, CasaOne, and its office focused partner BureauOne, are bringing the lease-to-own market into the 21st century with stylish options aimed at younger customers. With a heavily tech-focused business model, CasaOne and BureauOne are making big leaps into first-rate US cities like Chicago, New York, Los Angeles, Seattle, and Washington D.C.
  • Their latest round of funding in 2019 brought in $16 million, which they plan to use to eliminate any friction in the furniture buying process with tools like digital 3D models and a larger pool of space planning experts to assist new and existing clients plan their perfect home, office, or home office.
  • CasaOne and similar start-ups are "disrupting" the market and grabbing millennial who associate older furniture rental companies with low quality and predatory tactics. EasyHome will have to contend with the price points, style, and digital savvy of new outfits like CasaOne.

  • Inhabitr, https://www.inhabitr.com
  • Started in 2016 by two young Chicagoans sick of dragging furniture from apartment to apartment, Inhabitr caters to millennial and city residents with seasonal needs.
  • With a new $4 million in Series A funding, Inhabitr operates in 10 cities in the U.S. and aims to grow by streamlining the furniture design, manufacture, and retail process. The company works directly with manufacturers to source products, with an emphasis on modern style and sustainability, and then partners with existing moving and retail furniture stores for delivery logistics.
  • The focus on high quality products is what sets Inhabitr apart from existing lease-to-own giants who tend to focus on the most affordable product. Inhabitr's focus on high quality product may dictate how EasyHome make it's US entry. Like CasaOne, Inhabitr is another digital output with strong holdings in markets saturated with mobile young people turned off by unimaginative offerings and poor service.

  • CORT, https://www.cort.com/
  • CORT began with a customer service mindset that has served it well. Over 40 years, CORT has become the US's leading provider of "transition services", with over 100 showrooms nationally and 80 outfits around the globe. Now a part of Warren Buffett's Berkshire Hathaway, CORT covers the furniture market with home and office rentals and complete room sets, as well event furnishings and destination services for those who are relocating to a completely new country or city.
  • Within the furniture industry, CORT is known to have targeted the corporate furniture marketplace, with a focus on banks, consultants, and Fortune 500 executives.
  • Their success has come from providing corporations and small businesses office furniture on a "rent-to-rent" basis (versus "rent-to-own"). The company also provides residential furniture and housewares for corporate apartments and individual employees and booth furnishing rentals for trade shows. EasyHome would likely not want to compete with CORT for corporate rental services, but can work to solidify their position as the preferred home rental service provider.



Part
02
of three
Part
02

EasyHome Competitor Advertising

Easy Home has six major competitors that are long-time established rent-to-own entities with names that are mostly familiar to American consumers. This analysis of Easy Home's competitors' current advertising is a sampling of how they approach their marketing.

Rent-a-Center

  • Last year, Rent-A-Center spent under $100 million on digital, print, and television advertising. In the previous year they invested in premium advertising and reported on multiple media platforms on over 50 different media outlets. In the last 12 months, Rent-A-Center has launched and released two new products.
  • A display ad that was last run 12/11/2020 called 'Sleep Better For Less.' The ad was eye-catching as it includes bright primary colors.
  • A variety of print ads are available for viewing all on one site. Again, the use of primary colors is easy to spot.
  • Rent-A-Center TV Commercial, '$6 Pays Until June 1st' reminds viewers of its six month guarantee when the cat rips up a cushion on your couch. Rent-A-Center states that you pay only $6 for a new contract. Rent-A-Center realizes that things happen. Using an innocent looking kitty along with the humor is bound to get attention. The television spot was producer was MindShare (Media Agency).
  • Rent-A-Center TV Commercial, 'Stuff Happens: Ashley Sofa' tells customers not to stress after the kitty tears up the couch, because RAC has a remedy. Customers ca get a new Ashley sofa. Pay within six-months, and it's "same as cash." Again, the use of the kitty and humor is very effective; and this time, once again, the bright primary colors are utilized.
  • The advertising is targeting consumers who are not creditworthy of purchasing what they want or need using standard credit options.

Aaron's

  • See a variety of Aaron's display ads that are available for viewing all on one site. Aaron's main ads are produced in the complementary colors of blue and yellow.
  • Aaron's TV Commercial, 'The Magic of Winter,' says that Aaron's believes in winter's magic coming from happy, goodhearted people. The store is prepared to work with those customers to secure a flexible rental-to-own contract that will suit their budget even if their reputation isn't the best. The spot uses the combination of happy people and tops it off with ducks crossing the busy street in the snow. The optics are stunning. This television spot was done by Factory 360 (Creative Agency).
  • Aaron's TV Commercial, 'No Credit Needed Featuring Mark Martin and Michael Walt.' Michael Waltrip was elated when Aaron's invited him to drive Aaron's Dream Machine. This commercial uses celebrities and humor to catch the attention of potential customers.
  • The company advertising points out that Aaron's offers secure lease-purchase solutions and credit options to customers don't qualify for traditional prime lending.

Buddy's

  • A variety of Buddy's display ads are available for viewing on one site. The ads are very appealing in complementary colors of blue and yellow.
  • Buddy's Home Furnishings video #1 is a regional furniture store commercial. It features store employees with that "down-home" flavor.

CasaOne

  • CasaOne's advertising is concentrating on ads that inform customers that they can order any furniture which CasaOne supplies, and the company will deliver it to their doorstep and install it for them.
  • See a variety of display ads for CasaOne that are available for viewing all on one site. These ads are not devoted to any one style. They are, however, a good representation of what CasaOne offers.
  • The video 'Furniture rental startup CasaOne raises $16 million led by Accel' is replete with glamorous optics.
  • CasaOne's ads don't necessarily stress the point that CasaOne provides rental-purchase options to consumers who are not eligible for conventional loans. Their ads are somewhat contradictory, but they are eye-catching and appealing to a customer's desire to have the better thing in life.

Inhabitr

  • Inhabitr uses advertising intended to let users rent furniture at an affordable price.
  • A variety of Inhabitr display ads are available for viewing on one site. Inhabitr's ads have a somewhat retro feeling to them, which is bound to appeal to milenials.
  • Video 'Shop Affordable Furniture with Inhabitr' is targeting the milenials. This commercial is informative, with just a touch of humor.
  • Inhabitr ads are targeting mainly college students and traveling executives

CORT

  • Cort uses advertising that informs consumers that the company provides residential and commercial furniture, appliances, and related services.
  • See a variety of Cort display ads are available for viewing on one site. This advertising seems to be targeting mainly millennials. The range is remarkable.
  • CORT's ads target both businesses and individuals.


Part
03
of three
Part
03

Home Goods Financing Market Size

The market size for the home goods financing industry has been generally declining since 2010. In 2010, the market size was $888.4 million. In 2015, the market size was $819 million, and in 2019, $723.2 million.

Market Size 2010

  • According to a report created by IBIS World, the market size for the home furnishings rental industry was $888.4 million in revenue in 2010.
  • Since it began, the home furnishings rental market has been dependent on the housing rental market. When more people are in the market to rent a home or apartment, there are more opportunities for the home furnishings market to expand.

Market Size 2015

  • In 2015, the market size was $819 million in revenue for the home goods rental industry.
  • The home furnishings rent to own market growth rate averages to -2.2% for the period of 2014-2019.

Market Size 2019

  • In 2019, the market size declined to $723.2 million.
  • Market predictors determined that the rental vacancy rate was likely to decrease in 2019 at a smaller percentage than in 2019, which would likely be beneficial to the home goods rental industry.

Research Strategy

The source links may not be directing accurately. The market size information was readily available at https://www.ibisworld.com/industry-statistics/market-size/home-furniture-rental-united-states. The information for the market growth rate average from 2014-2019 can be found at https://www.ibisworld.com/united-states/market-research-reports/home-furniture-rental-industry.
Sources
Sources

From Part 01
From Part 02