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The Online Clothing Rental Market is estimated to be valued at US$ 1,313.0 Mn in 2023 and is expected to exhibit a CAGR of 10.33% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The Online Clothing Rental Market offers a unique business model where customers can rent clothes for a specific period instead of purchasing them. This trend is gaining popularity as it provides a cost-effective and sustainable alternative to traditional fashion practices. The market caters to various use cases, including special occasions, corporate events, photoshoots, and vacations, where customers can rent designer clothes, accessories, and footwear.
Market Dynamics:
The two main drivers propelling the Online Clothing Rental Market Growth are the rising popularity of sustainable fashion practices and increasing disposable income. As consumers become more conscious of the environmental impact of fast fashion, they are opting for rental services to reduce clothing waste. Additionally, the growing disposable income of individuals allows them to explore new fashion trends without the need for long-term ownership. By renting clothes, consumers can access a wide variety of styles and brands at a fraction of the cost, driving the market growth.
Segment Analysis:
The online clothing rental market can be segmented based on the type of clothing and the end-user. In terms of clothing type, the dominating segment is formal wear. This segment is dominating due to the increasing popularity of renting formal attire for special occasions such as weddings, proms, and corporate events. Many people prefer to rent expensive formal wear, as it allows them to wear designer clothing without purchasing it outright. Additionally, renting formal wear offers convenience and cost savings compared to buying new clothes for each occasion.
PEST Analysis:
Political: The political factors that can impact the online clothing rental market include government regulations and trade policies. For example, changes in import/export regulations can impact the availability and affordability of clothing rental options.
Economic: The economic factors that can impact the online clothing rental market include disposable income levels and consumer spending patterns. As the economy grows and disposable income increases, more consumers are likely to opt for renting clothes instead of buying them.
Social: The social factors that can impact the online clothing rental market include changing fashion trends and the growing popularity of sustainable fashion. Renting clothes aligns with the growing trend of reducing waste and promoting a circular economy.
Technological: The technological factors that can impact the online clothing rental market include advancements in e-commerce platforms and digital marketing techniques. Innovations such as virtual try-on technology and AI-based personalized recommendations can enhance the online rental experience for customers.
Key Takeaways:
The global online clothing rental market is expected to witness high growth, exhibiting a CAGR of 10.33% over the forecast period. This growth can be attributed to the increasing popularity of renting clothes as a cost-effective and sustainable alternative to buying new apparel. One of the key drivers of this market is the growing demand for formal wear rental, driven by the convenience and cost savings it offers for special occasions.
In terms of regional analysis, North America is the fastest-growing and dominating region in the online clothing rental market. This can be attributed to the high disposable income levels and fashion-conscious consumer base in the region. Additionally, the presence of key market players such as Rent the Runway and Poshmark has further fueled the growth of the online clothing rental market in North America.
Key players operating in the 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. These key players have established a strong market presence through their wide range of clothing options, convenient rental processes, and effective marketing strategies.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
