'Subscription Economy' is the Trend... Gmarket and Auction See 6x Increase in Rental Service Transactions

[Asia Economy Reporter Seungjin Lee] The so-called 'subscription economy,' where consumers pay a fixed amount to receive products or services regularly rather than purchasing and owning them, is rapidly expanding.

According to a survey conducted by Gmarket and Auction, operated by eBay Korea, the total transaction amount for rental service products in the first half of this year (January 1 to June 30) increased more than sixfold (561%) compared to the same period last year.

In particular, the transaction growth rate among the 2030 generation was 743%, driving the overall growth rate. This appears to be influenced by the characteristic of the 2030 generation, who place greater value on experiences rather than ownership through purchase. The 4050 generation, who have actively used existing rental services, also saw their transaction amount increase more than fivefold (415%).

Looking at the items by category, rental services related to home appliances that reduce housework received generally positive responses due to the impact of the novel coronavirus infection (COVID-19).

In the case of 'dishwashers,' although the absolute demand is low, they have newly attracted attention in the rental market, with transaction amounts increasing more than tenfold (1180%) compared to the previous year, showing the largest growth. Additionally, rental services for ▲food waste disposers (233%) ▲air purifiers (132%) ▲clothes dryers (78%) ▲electric ranges (43%)?seasonal appliances, kitchen appliances, and household appliances?all grew steadily.

It is also noteworthy that both the items with the largest share in the rental market and those with smaller shares saw significant increases in transaction amounts. The most representative and largest share item, the 'water purifier,' saw its transaction amount increase more than fourfold (320%), and 'long-term rental cars,' which had not been familiar with online purchases until now, surged by 580%.

Examining the purchase share by age, those in their 40s accounted for 37%, and those in their 30s accounted for 32%, meaning that 7 out of 10 buyers are in their 30s and 40s. This group is the most sensitive to the convenience and cost savings provided by subscription consumption, reflecting demand for rational and efficient consumption.

Meanwhile, due to the rapid increase in rental service users, Gmarket is conducting a 'Best Rental Benefits' promotion and offering various benefits. Auction has permanently opened the 'Era of Rental at Auction' promotion to introduce steady-selling rental service products.

Park Hyuk, team leader of the Business Development Team at eBay Korea, said, “Consumers purchasing rental services online, which allow them to experience various things without spending a large sum of money upfront, are increasing. In particular, the ability to quickly proceed from consultation application to contract contactlessly and to enjoy abundant benefits exclusive to the dedicated section are major advantages of online rental services.”

This content was produced with the assistance of AI translation services.