Designer Guido Maria Kretschmer is creating a furniture collection for Otto, which will be sold as a licensed brand bearing his name. The project, which is the designer’s third brand, has been underway since last May. Kretschmer gives customers his personal tips and recommendations for living areas. Commenting on the project, Kretschmer said: “I have memories of working on a catalogue with Otto. All these opportunities, variety of colours, different prices and reliability prompted me to enter this co-operation.”
Testing new business, rental model
Otto is relying on new impulses in other sectors as well. Last December, Otto began testing a new business model allowing customers to rent products such as TVs, washing machines, computer tablets, coffee percolators, drones and e-bikes via the new ottonow.de web site. Marc Opelt, Executive Vice President Sales, said Monday: “The idea of ‘owning’ the product for a certain period of time and just renting it has reached a new level in Germany. Now is the right moment to test the readiness of consumers for rental offers. True to Otto’s agile project procedure, the team is testing the results live in an early market phase so that a beta version of Otto Now can be seen today.” The model allows students to rent a washing machine for their flat share instead of rushing off to the nearest launderette
Multimedia products, gadgets and sports products
Otto Now is offering new products that have been professionally cleaned and work fully. Personal data stored on certain products is removed and the factory settings are restored. Multimedia products, gadgets and sports products are being offered initially. The rental fee includes an all-round service with free delivery, installation, repair and collection for a three-month minimum lease. When the minimum lease term has expired, the contract can be cancelled with one month’s notice. Maximum lease periods are not foreseen nor are there plans to let customers buy the rented products. All the returned products are examined, any required maintenance is done and the product is prepared as new for another rental period.
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