"Why Buy When You’ll Only Use It a Few Times?" Lump-Sum Purchases Are a Waste... China Embraces Rentals [World is Z Gold]

(40) China’s Rental Market Projected to Reach 200 Trillion Won by 2030
"Experience a Variety of Products at Low Cost"
"Well-Suited to the Adventurous Nature of Generation Z"

Editor's NoteThe Millennials & Gen Z generation (born from the late 1990s to the early 2010s) is receiving attention as a group that leads culture and trends in a rapidly changing era, setting new standards across society. In [World is Z Gold], we shed light on the lives and values of Millennials & Gen Z around the world, exploring how they are transforming society.

Driven by Millennials & Gen Z in China, a culture of renting not only high-priced equipment such as cameras and drones but also various items including home appliances is spreading. As a result, there is a forecast that the rental service market will surpass 200 trillion won in 2030.

China's Rental Market on the Rise... Expected to Reach 1 Trillion Yuan by 2030

China's state-run China Daily, citing analysis by the market research firm Analysys (易觀), reported that the size of China's rental market is expected to grow from about 71.69 billion yuan (approximately 15 trillion won) this year to about 1 trillion yuan (approximately 208 trillion won) by 2030. The annual average growth rate over the next five years is projected to reach 69%, indicating extremely rapid growth.

The article also introduced the case of Cheng Shua, a 27-year-old accountant in Suzhou who actively uses rental services. When traveling to various cities each month for concerts and music festivals, Cheng rents clothing or accessories in specific colors, as well as expensive equipment like cameras and drones. The Sony A7 series camera is one of the items Cheng rents most frequently.

Cheng said, "Buying a camera costs tens of thousands of yuan, but renting it for two days only costs 400 to 800 yuan (about 80,000 to 160,000 won). After placing an order online and completing identity verification, it is delivered the next day. After use, I simply pack it up and return it."

Key strengths of China's rental industry include fast delivery and strict quality control. Chen Weijun, a brand manager at one rental platform, explained, "Renting allows you to try various products at a low cost. This approach aligns with the younger generation's focus on experiences and their willingness to easily try new activities."

Piano Rentals... Rental Services Popular in Households Too

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There are also increasing cases of renting everyday household items such as car seats, toys, and home appliances to try them out before making a purchase. A typical example is renting an expensive piano for a certain period to see if a child is interested before deciding to buy one.

Li Sufei, a 35-year-old housewife living in Tianjin, said that she has been renting home appliances and childcare products since giving birth. "Rather than buying products needed for housework or childcare right away, it's easier to decide whether to purchase them after renting and trying them first," she said. When her daughter started learning piano at age seven, she rented a beginner digital piano for several months and only bought a full piano after confirming her child's sustained interest.

Rental industry expert Kang Kai analyzed that since 2020, the rapid spread of deposit-free rental services has led to explosive growth in the online rental industry. He said, "While previous generations chose rentals for economic reasons, today's Millennials & Gen Z choose rentals for the freedom of use rather than ownership. Rental is now not just a temporary solution, but a lifestyle."

"Millennials & Gen Z Prioritize Practical Value and Experience"

Meanwhile, the rental market is also rapidly growing in Korea. According to the KT Economic Management Research Institute, the domestic rental market is expected to grow from around 40 trillion won in 2020 to nearly 100 trillion won this year. Since renting expensive products requires less initial cost than making a lump-sum purchase, the rental industry is considered to maintain relatively solid demand even during economic downturns.

Samjong KPMG, in its report "Era of Major Shift in Consumption Paradigm: Liquid Consumption Trends in Distribution and Consumer Goods Industries" published last year, analyzed that "Millennials & Gen Z, having grown up in relatively affluent environments, tend to prioritize practical value and experience. This characteristic is linked to a consumption habit where, rather than showing high loyalty to a particular brand, they satisfy their curiosity by experiencing products from various brands."