[South Africa] Subscription beats credit in a costly festive season
While the festive season is a great time to rest and reset, it is also notorious for intensive spending. Christmas gifts, getaways, and festive groceries are just some of the luxurious goods we are all expected to spend our hard-earned money on at this time of year. Dear Kanali ,
Given the current economic circumstances, many South Africans don’t have extra cash to fund the festivities of the festive season. That means that people are more likely to turn to high-interest credit options to fund these products, falling deeper into the debt trap. Is credit really the only way?
Across the world, subscription models are on the rise, helping consumers manage their need for must-have appliances, electronics, and even cars. Why burden yourself with the burden of ownership and all its responsibilities, when everything can be sorted at a much lower monthly premium through a subscription?
Mishaan Ratan, Chief Marketing Officer from Africa's first on-demand subscriptions platform, Rentoza, believes now is the perfect time for consumers to change how they access these essential, but often expensive, products. “While the festive season is a beautiful time for most South Africans, there seem to be ongoing expenses on top of our regular monthly expenses. Avoid getting into unnecessary debt and subscribe to your products instead.”
Speaking to how subscribing to products can be more affordable than owning them, Ratan compares owning a fridge to subscribing to it. “On average, a double door fridge cost around R10 000 once off without insurance, whereas subscribing to the same fridge costs as little as R500 a month, plus it is fully insured, and you can swap it out for a new one whenever you want to for no extra cost.”
Why is subscription better than ownership? Ratan believes subscription is pure utility and real flexibility. “You access what you want for the time in which you need it to deliver the outcomes you require. The real benefit comes in when your needs change. Either you need something different or no longer need the product. This is where the flexibility of subscription impacts your life. You have total freedom to change, upgrade, downgrade, or if you really want to return the product. Access is underpinned by pure flexibility. No long-term commitment or financial burden.”
Rentoza has launched its festive season sale to provide further relief to consumers, where consumers can get up to 30% off anything from baby items and gym equipment to fridges and phones. “We acknowledge the financial constraints people are experiencing. Consumers still need essential products but at an affordable price. This sale is our Christmas gift to South Africans.”
Rentoza’s festive sale runs until the first week of January, and new products go on sale daily. Rentoza also recently launched its app, where consumers can comfortably explore the products, they need and want. “If you opt for a 12-month subscription, subscribing to a cool product during the festive season can become a yearly effort. You will always have something to look forward to with subscriptions over the festive season,” he adds.