Integrated technology finds itself molding steadily into every sector and industry. The advent of new innovations in both emerging and established markets has caused a meteoric rise in adaptation. Traditional industries now find themselves embedded with technological solutions and enhancements that were unheard of 20 years ago, and the ones that get left behind are now ripe to be tapped into by cunning prospectors.
Real estate is an interesting case, a seemingly indomitable sector that has only seen a rise in demand with a diminishing supply. Some would argue that there is nothing to be gained in trying to reinvent an age-old industry, but there are always people out there who think otherwise. This has given way to a new forefront of exploration.
Some call it Commercial Real Estate Technology (CREtech) and others call it Property Technology (Proptech). This tangent of innovation has come from the various ‘mad-men’ and startups trying to disrupt conventional real estate, by utilizing information technology, platform economics, IoT, data analytics and much more to completely redefine the entire chain.
Proptech has gained tremendous traction over the last 10 years as billions have been given out. Most of the efforts are in trying to digitize the entire process rather than improving the physical aspects. Or in other words, a ‘hardware light’ model which emphasizes a steady transition via digital changes from the now, standardized commercial structures.
One of the biggest pushers has been industry long-timers JLL, which even have their own division for Proptech investments called Spark. A large task of the present startups is streamlining and consolidating the heaps of fragmented data collected over time by the previous generation of CRE.
There are several visionary companies out there all tackling various verticals in real estate including, co-working, home buying, lease/renting, brokerage, home equity and multi-housing.
Where does Furniture Fit in?
The extreme growth of the Proptech industry has called upon new frontiers of exploration and discovery. Accompanying real estate is furnishing, with home and commercial prices going up and up, furniture has kept its tremendous prominence as a needed asset. No one lives in an empty house, and people are finding it more difficult to keep objects like furniture as permanent assets, as both demand and prices increase in parallel. The large millennial workforce’s aversion to asset ownership has fueled the way for the sharing economy. This sweet spot is where a vertical like furniture rentals can shine. Individuals are more likely to put off big-ticket purchases and will instead opt to rent furniture. Becoming ‘’asset light’’ is what most startups and enterprises aim towards, as they prefer to minimize capital expenditure and are more likely to move their operations around.
Some of the key issues faced by businesses in furniture acquisition include:
- Inability to access higher end furniture due to limited budget.
- Buying furniture creates a financial ‘sinkhole’ as these assets cannot be easily liquidated or resold and lose most of their value.
- Besides regular office furnishing, businesses do not usually have access to more expansive catalogs.
- Unforeseen/foreseen business situations can have a direct influence on the amount of furnishing owned by a business. A lack of adequate furnishing or excessive furnishing piles up.
- No flexibility in returns.
- Outdated buying process, no intuitive steps taken to improve customer experience.
- Bad after-purchase satisfaction. (long delivery times, additional assembly costs, unhelpful customer service)
- Basic website interface with no innovation or appeal.
Hundreds of brick and mortar retailers have popped up, despite their online presence, do not really solve the modern issues people and businesses face. Some startups have adopted the same practices of Proptech startups by bringing up the entire furniture acquisition process digitally. The race to turning furniture into a utility rather than an asset is on, and a new gateway presents itself for entrepreneurs.
How does BureauOne Solve these Issues?
- Eliminate large upfront investment and turning furniture into an operational cost (rather than a capital investment).
- Providing access to much higher quality furnishing at affordable rates.
- Unpredictable growth/downfall of business does not force them to relinquish furnishings. (Flexibility of returning and enlarging the amount of furniture according to the situation)
- Subscription-based leasing plans are gated behind a contract, which can be terminated at any time.
- Buy-out option to furniture leasing for businesses.
- End-to-end process including operation, delivery and assembly is handled in-house resulting in drastically reduced wait times.
- Purchase-enhancing facilities like visualizations, space planning, on-demand expert advice, Predictive suggestions and more has helped in reducing conflicted purchasing decisions.
Check Out BureauOne today!