ONLINE CLOTHING RENTAL MARKET ANALYSIS

Global Online Clothing Rental Market was valued at US$ 1,313.0 Mn in 2022, and is expected to exhibit a CAGR of 10.33%, in terms of revenue, over the forecast period (2023-2030) to reach US$ 2,883.8 Mn by 2030. Online clothing rental is a service that enables customers to rent clothes for a specific period. This service is beneficial for consumers looking for a designer dress for occasions such as theme parties, wedding parties, corporate parties, and filmmaking. Moreover, this service is also suitable for individuals going through temporary changes in their physiques.

Global Online Clothing Rental Market: Growth Drivers

Convenient and economical

One of the main factors driving this market is the ease of buying and value for money. The growing simplicity of online buying is another factor driving the global market for online clothing rental. The social attitude toward purchasing and leasing used goods has significantly changed. Through the use of the Internet and different advertising innovations, such as discounts on total costs for reservations made a month in advance of the rental's use, numerous online rental industries have made significant attempts to increase their market reach. This has been seen as an effort to maintain competition and boost specialized production, which encourages more online rentals.

Moreover, for many people, buying clothing online has become the standard; the added advantages of convenience, simple research capabilities, and price comparison tools exceed the effort needed to physically visit the traditional brick-and-mortar store. The availability of Internet rental platforms means that consumers can buy and rent any sort of apparel for long-term use at a lower cost. Social networking platforms like Facebook and Instagram, as well as online communities, have a significant impact on the market's expansion and growth since they distribute information about established players as well as newcomers in the online garment rental market. For instance, in 2020, Wardrobe announced the acquisition of Dallas-based rival Rent My Wardrobe, expanding its geographical foothold in the booming online clothes rental industry. The company operator of an online rental platform that rents out designer and vintage clothing at reasonable prices.

Consumer spending on fashion-related activities & increasing focus on children's garments

Customers' increasing spending on fashion-related activities as a result of increased disposable income is one of the key factors fueling the market expansion of online clothing rental. Because of the rising demand for expensive designer gowns and ongoing shifts in consumer fashion sensibility, it is predicted that the market for online clothing rental will grow. The increase in fast fashion labels is a significant factor fueling the market expansion for online clothing rentals.

Manufacturers' increased focus on the kid segment is expected to present profitable market opportunities in the future. Because of their parents' changing lifestyles, children are becoming more brand- and style-conscious, which is expected to drive market growth for online clothing rentals. Growing demand for children's clothing is expected to drive market expansion for online garment rental services over the forecast period. For instance, in 2021, Marks & Spencer launched its first clothing rental trial with the assistance of Hirestreet. M&S's rental collection includes over 40 pieces of women's clothing from its Autograph collection, with an emphasis on high-end materials like leather and silk, as well as the most recent gowns from its M&S x Ghost collaboration.

Global Online Clothing Rental Market: Market Restraints

Lack of adaptability & presence of alternative

One of the most significant impediments to market growth is a lack of customizability based on customer needs and body type. Unlike purchased clothing, which can be altered or even redone before purchase, rental clothing cannot be altered to an individual's specifications. This is expected to stifle market growth. The market is highly fragmented due to the presence of various unorganized manufacturer that offers inexpensive and non-branded products. This factor is expected to hinder the market growth of online clothing rental.

Figure 1. Global Online Clothing Rental Market, By Demography, in 2022

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Global Online Clothing Rental Market: Market Segmentation

On the basis of demography in 2022, the women segment has accounted for the largest market share of 61.3% in terms of value, followed by the men and kids segments respectively.

Growing women's online luxury fashion is projected to serve major growth opportunities for the market of online clothing rental. Due to a hectic lifestyle, an increasing number of working women are driving demand for online luxury apparel, as this working woman prefers online shopping for purchasing apparel. This is primarily because women are more enthusiastic about purchasing or renting clothing to keep up with fashion trends. Increasing demand for western designer dresses from women all over the world is expected to drive market expansion in the online clothing rental sector over the forecast period. This is creating vast opportunities for online rental players in the near future. The increasing focus of manufacturers on kids segments is expected to offer lucrative market opportunities in the near future. Children are becoming more brand- and style-conscious due to changing lifestyle of parents which is also expected to augment the market growth of online clothing rental. Thus growing kid's wear market is expected to foster the market growth of online clothing rental over the forecast period.

Figure 2. Global Online Clothing Rental Market ,By Region, in 2022

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Global Online Clothing Rental Market: Regional Analysis

North America dominated the global online clothing rental market in 2022, accounting for a 33% share in terms of value followed by Asia Pacific and Europe the North American market for online clothing rentals is rapidly expanding. Millennials in the region are increasingly renting items rather than buying them. Clothing rentals lag behind rentals in other categories such as cars, furniture, and electronics in the U.S., but the trend of online clothing rentals is quickly catching up. According to a study published in Sustainability in August 2021, GenZ adults are increasingly inclined to rent rather than own clothes, which can be attributed to the fact that they focus on usage rather than ownership as part of their consumption habits. Companies and retailers are responding to both the challenge and opportunity presented by online clothing rentals. For instance, CaaStle manages rental services for its own Gwynnie Bee brand in addition to other retailers like Express, American Eagle Outfitters Inc, as well as Ann Taylor of Ascena Retail Group Inc. It charges a flat fee per active subscriber to manage everything from logistics to laundry for the promotion. For instance, in 2021, Fly robe, a fashion rental business, had 1.0 million customers in December 2021, as it begins to recover from the pandemic. The company currently serves customers in 30 Indian cities.

Europe is the second-largest segment, accounting for 25% of the market in 2022. Due to the high purchasing power and fashion-conscious consumers in countries such as France, Italy, and the U.K., Western Europe is the dominant segment. Due to high demand from developing countries such as India and China, Asia Pacific is the fastest-growing segment. Growing consumer awareness and internet penetration are two of the region's most important growth drivers. Because India and China account for more than 34.0% of the global population, rising consumer awareness in these countries is expected to have an impact on overall growth. Consumers in these developing countries are discovering a better way to get their favorite clothes without having to buy them, and a clothing rental is a viable option for them.

Global Online Clothing Rental Market: Recent Developments

• In July 2022, Rent the Runway collaborated with Saks Off 5th to bring pre-owned designer items to its website, which now includes a "pre-owned" section.
• In April 2022, David Jones expanded its partnership with the fashion rental platform GlamCorner with the launch of Reloop. Customers can participate in the circular economy whenever they choose to shop consciously with GlamCorner's Reloop.
• In May 2022, following collaborations with designers such as Anna Sui and the launch of its resale platform last year, clothing subscription service Nuuly recently launched its latest ready-to-rent collection.
• In April 2022, Fly Robe collaborated with Franchise Mart to expand the RENT IT BAE franchise. The one-of-a-kind online premium rental service brings the latest fashion to your door.
• In October 2021, H&M, a major clothing retailer, launched a block chain-based service for renting out clothing with scan able lot labels. Customers can choose clothes for an immediate rental by scanning loT-connected stickers with their smartphone. The rental history of each garment is securely tracked using block chain, a decentralized ledger used for data-sensitive loT networks.

Global Online Clothing Rental Market - Impact of Coronavirus (Covid-19) Pandemic

Before the pandemic, people used to take clothes on rent for special occasions such as parties, weddings, or holidaysThey used to burrow their wedding or holiday dresses instead of buying new ones. However, due to the coronavirus pandemic, weddings have been canceled and vacations appear to be a distant memory. Rent the Runway has announced lay-offs, temporary pay cuts, and furloughed staff in response to the pandemic. The demand for rental clothes has dropped drastically as people not having events to go to. The hygiene factor also impacts the growth of the online clothing rental market as customers hesitate to share clothes with others during the pandemic. According to Coherent Market Insights, the online clothing rental market is expected to grow at a lower CAGR between 2020 and 2021.

 Global Online Clothing Rental Market: Key Companies

Major players operating in the Global Online Clothing Rental Market include Rent the Runway, Poshmark, Elanic Services Private Limited, Dress & Go, GlamCorner Pvt Ltd., Envoged, Etashee, Secoo Holdings Limited, and Secret Wardrobe

*Definition: Customers can rent clothes for a set period of time through online clothing rental services.This service is especially beneficial for customers looking for designer gowns for special occasions such as weddings, corporate parties, and filmmaking events.