Picture walking into a shop and asking for a drill. The salesperson replies, “Are you looking to rent or buy one?” Now imagine more than half of drill transactions being taken over by rentals. That’s a glimpse of how the access economy is set to transform the retail space.
The access economy is reshaping how consumers satisfy their needs. Driven by a new generation of entrepreneurs and services, consumers can now easily share or rent items that they only need for a limited period of time, or cannot afford to buy. Think tools, sports equipment, clothing, and much more. The list is long, and this trend is growing across European countries.
The access economy delivers mutiple benefits for retailers:
- New clients: consumers who wouldn’t buy an item because they only need it briefly, or cannot afford to buy it.
- Differentiation from competitors: offering these new services creates a clear competitive advantage by offering clients novel ways to interact with your business.
- New resilient revenue streams: Access to materials, rising costs, and supply-chain disruptions directly affect linear sales models. The access economy offers retailers and manufacturers a way to diversify their revenue streams, reducing dependence on product availability and making businesses less vulnerable to these constraints.
Global companies like Decathlon, Carrefour, Auchan, and Houdini have understood this shift and are already experimenting with new access economy service models.
So how should other retailers and brand manufacturers get on board and start experimenting with the access economy?
- Identify your potential for the access economy
Start by reviewing your portfolio of consumer goods to identify which categories and items have strong potential for the rental market. Tools (e.g., drills), sports equipment and cleaning equipment (e.g., carpet cleaners) are currently among the most rented items across Europe.
2. Understand the future of consumption
Next, build a clear view of how consumption is evolving, both for end users and across the supply chain. Access economy services can be delivered in different ways: over the counter, via digital in-store lockers known as sharing stations or through home delivery. These services can be operated directly by the retailer or manufacturer, or can be outsourced to established players. This includes startups that already have a user base and the necessary infrastructure to kickstart your foray into the rental arena.
3. Experiment and learn
The best way to move forward is to start experimenting. Pilot an access economy service and test new approaches to pricing, costs, and value creation. Use the pilot to learn from real users and answer key questions, such as:
Is the service attracting new types of customers?
Are we building a new, valuable relationship with customers beyond the rental period?
Is the service cannibalising sales ; in other words, would these users otherwise have purchased the item, if the rental option had not been available?
After returning their item, how many users go on to buy the product, alongside other products or services that you offer?
How are products actually used, and what logistics are needed to keep them in circulation (maintenance, cleaning, repairs, returns)?
What do the unit economics of a rental model look like? Is it profitable?
4. Monitor the growth of the access economy and build partnerships
New operators are emerging across Europe and are becoming the new “retailers” of the access economy. Sharing-station providers, for example, operate lockers in residential buildings and public locations (libraries, grocery stores), where users can access products on a self-service basis. For brands, this creates a new channel to engage potential customers, build visibility, and offer a different product experience.
In 2024, 350,000 users were already accessing sharing stations across Europe (Source: Digital Kiosks). Other rapidly growing models include libraries of things (library-style locations where users can borrow items instead of – or alongside – books) and peer-to-peer sharing apps (which allow users to list their own items for rental). The growth of the access economy is also being supported by governments and municipalities, which see access-based consumption as a more sustainable alternative to the traditional “take-make-dispose” model of consumption.
What now?
Whether you are already active in the access economy space or not, and depending on the types of products your business sells or manufactures, sooner or later you will most likely be impacted by this new ecosystem of services. Companies like Bosch and Karcher are already active in this domain, investing in startups like Tulu, and establishing relations with access economy operators, while collecting data on the rental habits of customers across product groups, geographic areas and other demographic factors. These insights will be vital in helping brands adapt their products and services to fit the expanding rental market.
Other brands and businesses should not hesitate to jump on board and get ahead of the access economy curve. Experimenting with the different ways in which the access economy can help diversify and expand your business model will place you in a strong position for a future in which rental and sharing services are likely to become a popular choice for many customers – helping them save money and storage space, while also supporting Europe’s shift away from an unsustainable production and consumption model.
Get in touch
If you are interested in learning more about the access economy and what it means for your business, get in touch with us.
