Gen Z turns to convenience, flexibility of rental economy

Convenience, flexibility

China's new rental market is expected to reach 71.6 billion yuan ($10.11 billion) in 2025 and nearly 1 trillion yuan by 2030, according to a report by Beijing-based internet consultancy Analysys.

The rental items range from electronics and outdoor gear to fashion and luxury items, with smartphones, laptops, cameras, and drones among the most popular items. More than 30,000 businesses are offering rental services, the report said.

Leading rental platform rrzu.com said during the recent National Day holiday from Oct 1 to Oct 8, its orders for photography and drone equipment surged nearly 350 percent year-on-year. Short-term rentals under 90 days now account for over 70 percent of bookings, with young people making up the majority of customers.

"This increase reflects how short-term rental services have become the mainstream choice for young users seeking convenience and flexibility," said Chen Weijun, brand and channel manager at rrzu.com, which has expanded from renting office equipment to now covering more than 200 sectors.

The platform has seen strong growth in both orders and user numbers, closely aligned with broader industry trends.

Chen said he and his team have observed three clear trends shaping young people's rental behavior.

"They increasingly prioritize short-term utility over ownership, seek rentals that enhance social and experiential activities, and make decisions based on convenience and efficiency, valuing quick ordering, flexible extensions, and easy returns," said Chen.

Growth is strong in lifestyle categories. In-demand items include photography equipment and drones, gaming consoles, trend-driven products, and tools for livestreaming.

Renting enables low-cost experimentation without the burden of equipment depreciation, Chen said.

"These trends reflect broader shifts in young consumers' values, as they pursue experience-based consumption and 'lightweight' entrepreneurship," he said. "Photography rentals suit travel vlogging, gaming rentals enhance social interaction, and technology rentals satisfy the desire to experiment."

The platform has also introduced innovative services to meet evolving demand. A "consignment rental" model, for instance, unlocks income from previously idle equipment. Owners can consign their unused equipment to the platform to rent out, and share profits with the company.

Chen said the advantages of China's rental model include adapting quickly to domestic trends, fast same-city delivery, and rigorous quality control.

"Generation Z and consumers under 30 are fundamentally changing the way rental services are used. They value utility and experience over ownership, creating diverse and fragmented demand that will drive industry expansion in the next two to three years," said Chen.

A total of 38.2 percent of users rent to test products before buying, while 33.7 percent rent to enjoy more variety, the consultancy Analysys found. Major reasons for renting items include concerts, travel, entertainment, and work, with baby care, health, and beauty emerging as new growth areas.