The online clothing rental market is expected to grow | Popgen Tech
Online clothing rental marketplace
The global online clothing rental market size is valued at ~2.0 billion US$ in 2022 and is projected to reach ~4.82 billion US$ by 2032, with the overall demand growing at a sustainable CAGR of ~9.2% from 2022 to 2032. The subscription model is becoming the new trend in the clothing rental business. This appeals to retailers who are under pressure to meet changing consumer preferences before certain designs lose favor.
Even as clothing sales decline, the clothing rental industry is reducing the range of subscription plans with the ultimate goal of attracting customers. The subscription model not only gives potential customers a clothing rental experience, it creates recurring revenue. However, it can save retailers the costs associated with traditional brick-and-mortar stores.
The clothing subscription and rental market also allows designers to quickly understand the tendencies of buyers. Moreover, the online clothing rental subscription market is expanding its customer reach through specialized/niche markets. Some of them use innovative strategies to gain traction. For example, Gwynnie Bee offers clothing rentals for plus-size shoppers—something that other online clothing rental retailers don’t pay attention to.
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Meanwhile, Union Station intends to get rid of bridesmaid dresses, which are usually expensive and are bought for the taste and style of the woman, not the wearer. The company gives women the opportunity to choose bridesmaid dresses that can be returned after being dry-cleaned.
Hence, online clothing rental is designed to help customers reduce the cost of buying new clothes for any special occasion / purpose.
Key Findings from Online Clothing Rental Market Research
FMI has forecast the market to grow at ~11.0% between 2021 and 2031 in its latest study.
The US has become a very profitable market, accounting for almost 95% of the North American market
The UK is forecast to register 11.8% y/y growth in 2021, which would be a very strong performance for the European market
Germany and France will continue to enjoy high demand for online clothing rentals
In East Asia, demand for China and South Korea is expected to be higher than for Japan
COVID-19 causes disruptions in online clothing rentals
Before COVID-19, online clothing rentals were supposed to be sustainable, but the pandemic has caused significant disruptions as events such as weddings, social gatherings and other events have been canceled due to the imposition of quarantine in various countries around the world.
Companies such as Rotaro, Rent the Runway and others have seen a decrease in rental requests. Since online clothing rental businesses are mostly based on events, during the pandemic, when there were no events and people were not going out, this in turn greatly affected the clothing rental business.
Who will win?
Some of the key players operating in the online clothing rental market are Rent the Runway, Rotaro, GlamCorner Pty Ltd., Gwynnie Bee Company, Mine for Nine LLC, Dress Hire AU, ThreadTread, Nuuly, Rent The Front Row LLC, Dress & Go Company, Chic by Choice Company, Style Lend Company, Rent It Bae Company, Mr. & Ms. Collection, The Secret Wardrobe, Banana Republic LLC, Le Tote Company and Lending Luxury, among others.
In September 2020, to meet the changing preferences/needs of today’s shoppers, Rent the Runway is introducing new apparel subscription plans that include dry cleaning and rentals, free shipping and returns, and member-only discounts. In addition, the company also uses sustainable strategies to improve the environment by using recyclable garment bags.
In 2019, Gap Inc.-owned Banana Republic LLC partnered with CaaStle to launch Style Passport, an online rental subscription for women. This will help the company connect with millennials and Gen Z who want to experience fashion in a sustainable way.
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Online clothing rental market by category
Pants and jeans
Suits and jackets
Coats and jackets
Skirt and shorts
The end user
Business to Business (B2B)
Business to Consumer (B2C)
Consumer to Consumer (C2C)
Focus on the consumer
Middle East and Africa (MEA)
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This release was published on openPR.