Almost four months into 2023, consumers have experienced an avalanche of economic challenges. This includes the cost-of-living crisis, persistent load shedding, and South Africa’s newly announced grey listing status. Apart from these challenges, the Reserve Bank has increased interest rates 50bps, again due to instability surrounding the collapse of US lender Silicon Valley Bank and stress at Credit Suisse.
Some economists argue South Africa has already entered a technical recession, given these grim circumstances. During times of recession, the economy slows, businesses often struggle to stay afloat, leading to staff reductions and retrenchments.
These factors temper South Africa's economic growth and have real and tangible effects on consumers feeling the economic pinch. A Financial Sector Outlook study by the Financial Sector Conduct Authority revealed that over half of South Africa’s credit-active consumers are over-indebted. The South African Reserve Bank (SARB) stated that South Africans spend approximately 75% of their salaries on debt payments.
Given the bleak economic reality, now is an opportune time for consumers to change how we access these essential products like mobile devices, gym equipment, appliances, and even baby goods.
A subscription provides a unique advantage in these volatile global and local conditions. Subscription pricing does not change regardless of interest rate hikes or global conditions. In fact, at Rentoza have been decreasing our subscription costs as our business has grown.
In addition to this, the subscription is completely flexible. When you subscribe to a product and can no longer afford it, you can just cancel it and return it, unlike other consumption methods like credit agreements, and the beauty of it, theres no cancellation fees or penalties. We've really built a business with the customer in mind.
The bonus of subscription is that added costs like repair replacement and maintenance are included. When you own a product, you are responsible for it, and its value depreciates. When you need to upgrade, you must go through the whole cycle again, whereas with a subscription, you can upgrade whenever you want. All we do is swap out the product for the one you want.
This differentiated approach allows consumers to access products at a fixed cost without getting into debt. Accessibility is at the heart of our business; we want everyone to access the products they need and want without having to be subjected to high-interest credit options. We are not a credit provider; therefore, we do not do credit checks, we do however vett you through our proprietary behavioural analytics engine which looks as a myriad of factors including your social media profiles.
So although more complex and unstable economic times are ahead, subscriptions remain reliable. Subscribe to the lifestyle you want and is a good way to avoid being subjected to unpredictable conditions.
Just Rentoza It.
