Welcome back to Industry Shifters.

Today we are exploring the lively world of Christmas lights.

Could Christmas light rentals become a staple of Australian households?

Let’s find out!

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Christmas Light Rentals

Christmas light rentals are becoming increasingly popular in Australia, offering a convenient and hassle-free way to deck out homes for the festive season. 

This service allows individuals to enjoy professionally designed and installed Christmas light displays, which are then removed and stored by the rental company after the holiday season. 

These services provide a wide range of lighting options, from traditional string lights to elaborate displays, catering to various styles and budgets. 

The convenience of this option appeals to many, especially those who lack the time or resources to manage their own decorations. 

As Australians increasingly seek ways to celebrate the holiday season without long-term commitments, Christmas light rentals are poised to become a staple of festive traditions across the country.

Potential Impact

We roughly estimate the Australian Christmas lights market to be worth about $40 million AUD.

Christmas light rentals are currently estimated to make up less than 5% of this market.

Provided Christmas light rentals become a popular alternative to purchasing lights:

In a low growth scenario, where Christmas light rentals only come to account for 5% of this industry over the next 5 years, the market for Christmas light rentals would be worth about $2 million AUD by 2030.

In a high growth scenario, where Christmas light rentals come to account for 20% of this industry over the next 5 years, the market for Christmas light rentals could potentially be worth as much as $8 million AUD by 2030.

Why this WILL be disruptive:

• Convenience and Professional Installation: Rental services provide hassle-free solutions, including professional installation and removal, which is ideal for time-poor consumers or those without DIY skills.

• Cost-Effectiveness: Renting can be more affordable than purchasing, especially for short-term use, as it eliminates the upfront costs and ongoing maintenance. LED lights, which are often used in rentals, are also energy-efficient, saving up to 90% compared to older incandescent lights.

• Eco-Friendly and Sustainable: Renting helps reduce waste, eliminates the need for single-use plastic decorations, and promotes energy efficiency, aligning with sustainability trends.

Why this WON’T be disruptive:

• Personalisation and DIY Satisfaction: Many people enjoy customising their decorations to reflect their unique style, with some preferring the DIY process of decorating their homes.

• Market Size and Seasonal Demand: Christmas light usage in Australia is relatively low-cost, and the brief holiday season limits the profitability of rental businesses. Rentals may also face competition from affordable options offered by retailers, with lights ranging from $2 to $319.

• Market Awareness and Quality Concerns: Rentals remain a niche offering, and many consumers are loyal to traditional purchasing methods. Additionally, some customers may prefer owning high-quality lights that last longer.