Delsey Looking Into the Circular Economy

On December the 2^nd, Delsey –French company manufacturing luggage and travel accessories– will be launching a leasing offer for travel bags, luggage and storage bags.

Cost: from €29 to €49, including shipping to the delivery point (round-trip) and insurance in case the item gets damaged or lost by the airline company.
Three options:
- Weekend: 5-day rental period (Thursday to Tuesday),
- Week days: 10-day rental period,
- Longer stays: 25-day rental period.
Customer process:
- Customers would book online via the manufacturer’s leasing-dedicated website (to be made available in the coming days).
- They choose an offer (weekend, week days, or longer journey) and luggage: premium cabin suitcase, with a companion bag, backpack, XL suitcase, storage bag, etc.
- The suitcase is sent within 1 to 2 days before the planned departure date; they may pick it up for free at a Chronopost delivery point or have it shipped to their home address (€15 extra).
- Once their journey over, they have 2 days to bring the luggage back to a Chronopost location.

Matching changes in consumption models. Delsey’s new offer first meets a new consumption model leading some of their customers to borrow travel bags only when needed, rather than buying them. Delsey adds leasing options and would target customers who may not have enough room to store luggage or customers interested in often changing travel bags.
Logistical challenges and adjustments applied to their industrial model. This launch should be seen as a test phase since it entails substantial logistical challenges.
- Delsey tries to reassure their customers and only rents nearly new luggage, or in perfect condition. The suitcases’ inner liners are cleaned after each rental period. Delsey will then have to implement and manage a service for making sure the travel bags can be rented again, in addition to shipping them via Chronopost.
- From a longer-term standpoint, they are actually making changes to their industrial model: these leasing options must drive in enough revenue to make up for logistics costs and any potential shortfall if customers would rather rent than buy: the price to pay to set foot in the circular economy.

According to Delsey, the US market has inspired this service. Some of the most mature leasing services for consumer goods were launched in this country: Rent the Runway (fashion industry), Fair (car industry), The Everset (furniture), and even broader platforms such as Joymode (where customers can rent different kinds of objects).
Some industry players are well aware of this major strategic shift, reaching beyond consumption models and requiring industrial models to be reshaped. In France, Bocage, for instance, implemented the skills needed to repair and refurbish shoes, and SEB only sells items that can be repaired.

Category : Alertes quotidiennes