Feasibility of luxury renting to tertiary students.

Abstract

Our paper aims to explore the feasibility of renting luxury goods to tertiary students or renting other products such as apparels, accessories and electronics to new customer segments. A new technique termed “Rolling Focus Group” is adopted for our focus group study. This method allows us to explore this new business idea further with maximum flexibility. Numerous issues were brought out and discussed by the participants. A total of seven issues were rolled out, namely, face, situations, experience, trying out, variety, renting being a trend and renting for a short period of time. Participants in general have major concerns with regards to renting and their perception of renting luxury goods is predominantly affected by the face issue. With the issues on hand, we then went on to discuss how these issues are resolved through marketing efforts. Using Ansoff Growth Matrix as a guide to counter our competitor, we have decided to focus on Product Development strategy. Our proposed marketing strategy and breakeven analysis provides evidences that our rental business model of luxury apparels, accessories and electronics will be feasible if the awareness of renting is heightened.