One day, you’ll always have the choice to either rent or buy.

Cars, property, furniture, clothes, mobility solutions…rental by subscription knows no bounds. At least, that’s LIZEE’s view. The startup offers to help retailers adopt this economic model which offers advantages to both retailers and consumers alike.

Why keep buying products which will be obsolete in a short time or that you will barely use? It’s a sign of the times that rental is becoming increasingly widespread in the purchase process, even with retailers who hadn’t until now adapted to the economic model.

Rental and Subscription: Easy on the budget and good for the planet!

Use v Ownership. In recent years, it’s a game that’s been played in many sectors. Consumers are careful with their budgets and aware of environmental issues. Now they have a way to kit themselves out over and over at the best price while reducing the number of products on earth, and at home too. From washing machines to printers and tyres, ownership is no longer a necessity. It could even hinder personal development. Manufacturers and distributors have caught on and are happy to reach out for help transforming and adapting their economic model.

LIZEE, the startup that’s getting everyone to subscribe.

They’re convinced of it: rental and subscription are the way of the future. ‘They’ are Anna Balez and Tanguy Frécon, the two founders of LIZEE, a young French startup, launched at the very start of 2020. Their aim: convert retail giants to subscription rental companies. They’ve created a system to help brands set up and launch their own rental businesses in just 9 months. Software, warehousing and logistic process…LIZEE covers it all allowing retailers to “test and learn” before deploying their solution on a larger scale. And it works! Last April, they raised 1 million euros and since then they have worked on a series of projects.  LIZEE has already won over luggage brand KIPLING and DECATHLON for its bikes, camping and trekking equipment.

Is it better to subscribe than to buy?

Brands seem to be finding this to be the case. Renting increasingly appeals to consumers, particularly millennials. But for companies too, it’s a way of making production more profitable by increasing the gross margin. Take a jumper that costs 10 to produce and is sold for 50. The gross margin is 40. Now, take that same jumper for 10, rent it 20 times for 10 and you achieve a gross margin of 190! Of course, in reality, rental and subscription systems do require different logistics (returns, maintenance, cleaning, repairs), but it could well become the norm in our future purchasing processes and reshape how we view ownership.