Citizens drowning in the inflation vortex chose to rent instead of buying new!

The economic crisis in Türkiye has created a new market. Technological devices, which had been unaffordable due to rising prices, are now being rented. This rental growth has reached 6 billion Turkish Lira annually. With this model, instead of paying a fortune for a 50,000-100,000 lira mobile phone, you can rent it for 3,000-5,000 lira per month, or pay 500 lira per month for a 30,000 lira baby stroller, which you can then return when your baby grows up.

“PHONE, TABLET, COMPUTER”

According to a report in Employers' World, Kiralabunu Co-Founder Sinan Ventura explained that they brought a model they saw in Germany to Türkiye and established it during the pandemic. He emphasized their fivefold growth every year, saying, "Nearly 60% of our business consists of mobile phones, computers, and tablets. The rest is game consoles and PlayStation products. Mother and baby products are a very serious category. I'd say we have the largest stroller fleet in Türkiye; we have over 1,500 strollers. We also prevent waste. Because when you buy a stroller for about 30,000 lira, it's wasted after maybe six or seven months. That side is growing fast, too."

Ventura, noting that Türkiye currently has an annual rental volume of 6 billion Turkish Lira, said that the market's rapid growth is driven by rising prices, increasing financial access, and the new generation's desire to experiment and buy. Pointing out that mobile phones, computers, and tablets are leading the way in rentals, Ventura continued:

For example, consider a student. If they wanted to buy a computer, they'd pay 40,000-50,000 lira. However, if they came to us, they could rent it for 1,000-1,500 lira per month. When you consider that, they might rent it for four or five months and then return it during semester break or summer break. They'd pay perhaps 10,000-12,000 lira per year. Otherwise, a low-income family would have to pay two months' minimum wage to afford that computer.

“MOBILE PHONE 400 TL, HOME APPLIANCES 89 TL”

Ventura explained that monthly cell phone rentals start at 400 lira and go up to 5,000-6,000 lira. "There are devices that cost 150,000 lira but have a monthly rental of 5,000-6,000 lira," he said. "Monthly computer rentals start at 500-600 lira and go up to 2,000 lira. Software is professional products used by design companies... Monthly rentals start at 89 lira for household appliances, 700 lira for hair stylers, and 1,000 lira for washing machines." Ventura emphasized the rapid growth of the coffee machine market, saying, "That starts at 400 lira and goes up to 80,000 lira. Individuals and small businesses are the most common renters. Tradespeople, accountants, and law firms—companies of 5-10 people—are renting coffee machines. Television rentals, which used to start at 800-900 lira per month and go up to 3,000 lira, are more than doubling their prices. We aim to rent 250,000 appliances in the next three years."

“THERE ARE MASSES TEST BEFORE RENTING”

Ventura, noting that different motivations prevail in renting, said that some people use renting to try it out and then buy. He continued: “Let's say a new vacuum cleaner comes out, and a housewife says, 'Instead of paying 30,000 lira for it, I'll check if it cleans well first and then buy it if necessary.' Now, people can rent a smartwatch for 300-500 lira per month. For example, a cell phone costs at least 30,000-50,000 lira today. Therefore, renting has become more attractive. The new generation says, 'At least I'll rent so my technology doesn't wear out.' This is becoming increasingly common.”

“THERE IS A SERIOUS INCREASE DURING THE EDUCATION PERIOD”

Sinan Ventura, noting that the reopening of schools has significantly boosted rental sales, said, "The demand for educational materials, including reading tablets, computers, cell phones, smart boards, and projectors, has accelerated significantly. Schools are also renting equipment for use in laboratories. The reopening of schools has increased volume by 40 percent. We expect revenue in the last four months to be double that of the first eight months."

“WEIGHT IS BETWEEN 20-40 YEARS OLD”

According to a report in Dünya, Ventura stated that the majority of his rental customers are between the ages of 20 and 40, explaining that there's been a significant increase in rental demand from newlyweds, recent university graduates, and students. He noted that newly graduated doctors opening clinics are renting smart chairs, X-ray and CT scanners, while some small businesses are renting motorcycles, scooters, air conditioners, and televisions. Pointing out that a total of 50,000 devices of 4,000 different types have been rented, Ventura said, "We expect a turnover of 600 million Turkish Lira this year. We expect the volume of products we rent to reach 1 billion Turkish Lira. We're collaborating with 150 brands." Ventura added that they've grown an average of fivefold every year since their founding.

INVESTOR APPETITE FOR NEW BUSINESS MODELS IS HIGH

Meanwhile, investor appetite for business models that rapidly transition to commerce in an inflationary environment is also high. Kiralarsın received a $900,000 seed investment in a round led by TIBAS Ventures, while other participants in the round included Arya VC and QNBEYOND Ventures. Local startup Kiralabunu, meanwhile, received a 24 million TL investment in recent years at a valuation of 200 million TL.

HIGH-HEEL SHOES FOR 450 LIRA, BRACELET FOR 150 LIRA PER DAY

As rental demand increases due to rapidly rising prices, dozens of platforms offering branded items online are attracting attention. These products include yogurt makers for 370 lira per month, cordless handheld vacuums for 325 lira, hair straighteners for 480 lira, hair dryers for 240 lira, smart robot vacuums for 470 lira, and virtual gaming glasses for 480 lira. The clothing and footwear category is also noteworthy. These platforms offer high heels starting at 450 lira per day, luxury evening bags starting at 1,000 lira for four days and rising to 8,500 lira, earrings for 1,200 lira, sneakers for 200 lira per week, bracelets for 150 lira, and evening dresses starting at 1,500 lira for four days.

“DEVICE DEMAND FOR COMPANY EMPLOYEES HAS INCREASED”

Başak Baykan, co-founder and CEO of Kiralarsın, explained that they rent electronics and baby care products. She noted several motivations for renting, noting that purchase prices have increased significantly. "Therefore, consumers say, 'I need to be sure before paying a high price.' For example, the belief that 'instead of paying 140,000-150,000 lira for a phone, I'll lease it for 12 months and then switch to a new model when it comes out' is very common. Cell phones are the most popular products, followed by laptops, tablets, robot vacuums, and game consoles. Beauty care products include hair straighteners, epilators, air purifiers, and treadmills," she said. Baykan also noted that companies are demanding equipment and renting it for their employees, adding, "Because if they wanted to buy, they would have to spend at least 2 million lira. However, they pay less when they rent."

He brought his business model to England and Wales.

Baykan pointed out that the highest demand comes from those whose purchasing power has decreased but who want to maintain their standard of living, saying, "Because these income groups want to rent out a PlayStation as a report card gift if they have a young child." Baykan noted that the 25-40 age group is the most likely to rent. Explaining that they also rent under their own name in England and Wales, Baykan said, "Our brand there is Rundle. It's 100% our company. However, the motivation there is more sustainability-focused. People don't want to produce waste. There's a good market there too."

Source: World of Bosses