by The online clothing rental market offers subscription-based clothing rental services to customers on a short term basis. Customers are provided access to a variety of dresses, outfits and accessories which they can choose from based on different occasions or events. This service provides flexibility to customers by eliminating the need to purchase clothes.
The global Online Clothing Rental Market is estimated to be valued at US$ 8388.654692 Mn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The rising popularity of subscription models among millennial is a key trend in the online clothing rental market. Millennials are increasingly preferring subscription-based services over ownership, driven by ease of use and convenience. Clothing rental service provides them access to latest designer wears and styles without actually purchasing them. This allows millennial to explore different fashion trends in an affordable way. Several online rental startups are targeting millennial segment which is contributing to growth of this market.
SWOT Analysis
Strength: Online clothing rental offers a sustainable fashion option to customers by enabling reuse of apparel. It helps reduce fabric waste.
Weakness: Dependence on the latest fashion trends makes inventory management challenging. There is a risk of style becoming outdated.
Opportunity: Growing awareness about fast fashion’s environmental impact is increasing popularity of rental business models. Rapid expansion of e-commerce provides an opportunity to tap into new customer segments.
Threats: Stiff competition from resale sites that offer used clothes at lower prices. Economic slowdowns can reduce discretionary spending on clothing rentals.
Key Takeaways
The Global Online Clothing Rental Market Growth is expected to witness high, exhibiting CAGR of 4.8% over the forecast period, due to increasing popularity of shared or collaborative consumption. Enhanced customer experience provided by personalized sizes, fabric choices and fit recommendations is driving the market.
Regional analysis: North America dominates the online clothing rental market currently due to high adoption of subscription-based businesses. However, Asia Pacific is expected to emerge as the fastest growing market owing to rising fashion consciousness of middle-class consumers and speedy uptake of e-commerce in countries like India and China.
Key players operating in the Online Clothing Rental Market are Rent the Runway, Poshmark, Elanic Services Private Limited, Dress & Go, GlamCorner Pvt Ltd., Envoged, Etashee, Secoo Holdings Limited, and Secret Wardrobe. These major players are focusing on strategic partnerships and collaborations to expand their reach. For instance, in 2022 Rent the Runway partnered with Westfield to open retail drop-off locations inside select malls.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
