In 2023, the online clothing rental market is forecasted to reach a valuation of US$ 2,279.9 million, with projections indicating substantial growth opportunities. By 2033, it is anticipated to surge to US$ 6,244.1 million, reflecting a remarkable Compound Annual Growth Rate (CAGR) of 10.6% throughout the forecast period. This growth signifies a golden opportunity for decision-makers in the fashion industry. Here’s why online clothing rental is the future of fashion, and how you can weave a path to sartorial success:
Beyond Special Occasions:
- Renting Moves Online: Gone are the days of limited selection in physical rental stores. The online clothing rental market offers a vast and diverse fashion selection, catering to everyday wear, special events, and everything in between. By catering to a wider range of needs, you can expand your customer base.
Subscription Revolution:
- Convenience is King (and Queen): Modern consumers seek convenient shopping experiences. Offer subscription models that provide access to a curated wardrobe, eliminating the need for constant clothing purchases.
Sustainability Sells:
- Eco-Conscious Consumers: Millennials and Gen Z prioritize sustainability. Promote the environmental benefits of clothing rental, such as reduced water and energy consumption, and CO2 emissions. Highlight how your service aligns with their values and desire for a more sustainable fashion industry.
Showcase Sustainability:
- Data Drives Decisions: Follow the lead of companies like Rent the Runway and conduct research to quantify the environmental benefits of clothing rental. Share this data with your customers to build trust and transparency.
Frictionless Fashion:
- Omnichannel Experience: Today’s consumers expect a seamless shopping experience. Invest in a user-friendly platform that allows for easy browsing, live inventory tracking, quick booking, and convenient delivery and return options.
Key Takeaways from the Online Clothing Rental Market
- In 2022, formal clothing had a market share of around 31.5%. Formal clothing, such as suits and blazers, is expensive and requires maintenance; therefore, price-conscious and young consumers prefer to rent.
- In terms of business models, the market is divided into two categories: standalone and subscription. As these clothes are worn sparingly on special occasions that do not occur at regular intervals, the standalone segment is expected to account for 76% of the market share during the projected period.
- Women are expected to continue to dominate the market with a 58% share during the forecast period. Women’s clothing places a premium on fashion rental platforms. During the forecast period, the continued demand for western designer dresses among women worldwide is expected to fuel the growth of the online clothing rental market.
- The online clothing rental market in Germany was valued at US$ 0.090 billion in 2022 and is expected to reach US$ 0.17 billion by 2030, growing at an 8.7% CAGR between 2023 and 2030. The desire for more sustainable and affordable ways to acquire designer clothes has increased the popularity of online clothes rental apps in Germany. Furthermore, due to the cold weather, consumers have a high demand for coats and jackets.
- The online clothing rental market in India was valued at US$ 0.076 billion in 2022 and is expected to reach US$ 0.14 billion by 2030, growing at an 8.8% CAGR between 2023 and 2030. The online rental clothing market in India is expanding as a result of increased internet usage, increased awareness of sustainability, and increased demand for high-end brands at reasonable prices.
- The United States accounts for around 95.0% of the North American online clothing rental market and is expected to grow at a CAGR of 7.4% during the forecast period. The rise in the various new start-ups and the presence of some of the leading brands in the rental clothing market in the United States are driving growth in the online clothing rental market in the region.
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Competitive Landscape
The competitive landscape in the online clothing rental market is moderately fragmented, with a mix of established retailers and start-ups. While some retailers seek a better way to manage their inventory through rentals, start-ups seek to expand their business by offering multi-brand product mixes. Among the market’s key players are Le Tote, Gwynnie Bee, Glam Corner, Rent the Runway, and Nuuly.
- In 2022, Tommy Hilfiger entered a rental partnership with Rotaro in the United Kingdom. The collaboration might allow renters to wear a variety of unisex pieces from the TommyXRomeo collection, as well as denim from Tommy Jeans and archive Hilfiger pieces.
- In 2022, a new clothing rental company began providing customers with access to the wardrobes of fashion industry creatives and influencers. Rachel Cornick’s new platform combines fashion rental with the power of social media.
Online Clothing Rental Market by Category
Product Type
- Knitwear
- Trousers & Jeans
- Jumpsuits
- Suits & Blazers
- Coats & Jackets
- Skirt & Shorts
- Ethnic Wear
Business Model
- Standalone Model
- Subscription Model
End-User
- Business-to-Business (B2B)
- Business-to-Consumer (B2C)
- Consumer-to-Consumer (C2C)
Consumer Orientation
- Men
- Women
- Kids
Region
- North America
- Latin America
- Europe
- East Asia
- South Asia
- Middle East and Africa (MEA)
- Oceania
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Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of ~400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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