Online Clothing Rental Market, By Demography (Women, Men, kids, Others), By Business Model (Peer-to-Peer Model, Standalone Model, Hybrid Model, Others), By Price Range (Premium, Mid, Low), By End User (B2C (Business to Customer), B2B (Business to Business)), By Type (Western Wear, Ethnic Wear, Others), By Region (North America, Latin America, Europe, Middle East & Africa, and Asia Pacific)

Published In : Apr 2023

Code : CMI1446

Pages :120

Formats :

Excel and PDF

Industry : Consumer Goods

Regional Analysis

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

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.