Consumers and merchants do not buy furniture leasing business

Shenzhen's furniture rental service is an innovative model introduced by Furniture City. With a credit card from a designated bank, consumers can enjoy "zero down payment, zero interest, and zero handling fees" to bring their favorite furniture home. Renters are required to pay a monthly fee of 2.5% of the total value of the rented items. After a two-year lease, they can renew at a 10% discount. The longer the rental period, the more discounts apply, and after five years, the furniture can be purchased for just one yuan. For example, if a bed costs 2,000 yuan, the monthly rent would be 50 yuan. Over two years, that totals 1,200 yuan. To own the furniture, you'd need to rent it for five years, which would cost more than the original price. "This service allows people who aren't financially ready now to enjoy high-end furniture," said a staff member from the Shenzhen store. However, in Nanjing, no major furniture stores offer such services. Stores like Red Star, Yuexing, Yonglong, and Gaoli Furniture Port do not provide furniture rental options. Some brands, including Gujia and Chivas, also don’t offer this service. According to Mr. Li, a manager at a solid wood furniture store, the main issue is pricing. High rental costs make it unattractive for consumers, while low prices could lead to losses due to wear and tear. Additionally, managing returned furniture after leases end is another challenge. Logistics also pose a problem. High distribution costs make it difficult to lower rental prices, which hinders the development of furniture rental services. Consumer attitudes vary. Mr. Wu from Zijin Nanyuan finds the model unappealing, as long-term rentals can be costly—three years of payments nearly match the furniture’s original price. Even though a 1-yuan purchase option exists after five years, the total cost ends up being higher. Xiao Zhu, a recent graduate living in a rented apartment, prefers buying second-hand furniture instead of renting. “I only need basic furniture for my place. Buying used is cheaper and more suitable for someone like me,” she said. Although the furniture rental market in the U.S. is worth $44 billion, China’s market remains almost untapped. Industry experts believe there are early signs, but large-scale adoption is still far off. However, some stores have started offering installment plans with banks. For instance, Red Star Macalline Kazi once partnered with ICBC to offer "zero down payment and zero interest" for six months on home building materials. While they don’t have dedicated furniture rental services, the concept is similar to installment payments. "Renting furniture elsewhere is essentially the same as paying in installments," said a Red Star Macalline representative.

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