Global Online Clothing Rental Market Size, Share, Opportunities, COVID-19 Impact, And Trends By End-Users (Men, Women, Kids), By Product Type (Traditional, Formal, Casual), And By Geography - Forecasts From 2022 To 2027
- Published : Sep 2022
- Report Code : KSI061613151
- Pages : 130
The global online clothing rental market is projected to grow at a CAGR of 32.04% during the forecast period, reaching a market size of US$7.275 billion in 2027, from US$1.039 billion in 2020.
Customers can rent apparel for a set amount of time using online clothes rental platforms. Customers looking for designer clothes for events including weddings, theme parties, business parties, and filming are likely to benefit from this service. Consumers view these services as convenient and cost-effective. For those with budgetary constraints and customers who cannot afford apparel from their preferred brands, rental services offer a cost-effective alternative. The online clothing rental market has recently been significantly growing due to technological advancements, internet penetration, and the rising popularity of internet-based shopping sites.
Additionally, the rise of the online clothing rental market is anticipated to be aided by the expanding popularity of the film, television, and fashion vlog industries. For this reason, several industries prefer renting clothing rather than purchasing them. Furthermore, the growing consumer expenditure on fashion-related activities as a result of rising disposable income is a key factor driving the market expansion of online garment rental.
The market for online clothes rental is anticipated to increase as a result of rising consumer demand for expensive designer gowns and ongoing changes in consumer fashion sense. The demand for online garment rentals is expanding due to a growing emphasis on sharing and having quick access to clothes as well as growing awareness of the positive ecological implications of renting clothes.
Increased access to the Internet and a raise in a disposable income boost the growth
One of the key elements fueling the expansion of the online clothing rental market is the rising internet penetration and widespread adoption of smartphones. The development of mobile Internet technologies has made online shopping more feasible. The number of individuals using the internet as a percentage of the total population has been increasing significantly. As per International Telecommunication Union (ITU) World Telecommunication/ICT Indicators, the Global Internet penetration has increased from 40% in 2015 to 60% in 2020. The positively skewed growth for smartphones and internet usage is a likely factor to further boost the growth of the online clothing rental market in Indonesia. Additionally, as per World Bank data, the Global Adjusted net national income per capita (current US$) has increased from USD 8404 in 2015 to USD 9271 in 2019. This increase in disposable income has contributed to a preference for party dresses, designer gowns, and dinner suits, which will positively impact the online rental market for clothing.
Growing trends of Sustainable consumption
Renting clothes is regarded as a more sustainable way of consuming clothing in the modern period, as industries are incorporating sustainability as their key business plan to attract more clients. Renting clothing would reduce carbon emissions and other toxic substances, protecting the environment and natural resources. Additionally, by including clothing rental in their overall business and sustainability plan, clothing manufacturers could raise their social manufacturing standards. For example, Marks & Spencer and Hirestreet collaborated to start the company's first trial for apparel renting in November 2021. The M&S rental collection includes more than 40 items of women's clothing from its Autograph collection, with an emphasis on high-end materials like silk and leather and the newest gowns from its M&S x Ghost partnership. Further element supporting market expansion is growing awareness of environmentally friendly clothes and the benefits of sharing and reusing clothing. According to a survey conducted by the fashion company Depop, 75% of Gen Z respondents claimed they purchased used clothing to cut down on consumption. The consumer changes towards minimalism and sustainable consumption are expected to increase the demand for the online clothing rental market.
Technological advancements and the growing e-commerce fashion industry assist the growth of the market
A new generation of tech-savvy consumers and advancements in mobile technology has had a significant impact on e-commerce, especially in the fashion industry. Retail is dealing with a brand-new generation of internet shoppers that mostly utilize smartphones for their purchases. The e-commerce fashion industry has benefited from simple one-touch features like using "save for later" buttons or adding items to your "wishlist", as well as eCommerce payment options (or digital cashless payments). Consumers are exposed to different means of finding apparel and companies are also promoting renting options in addition to the apparel sale platforms. H&M, a major retailer of clothing, has introduced a blockchain-based business for renting out clothing with scannable loT labels. By using their smartphone to scan loT-connected stickers, customers may choose clothes for immediate rental. Each garment's rental history is securely tracked using blockchain, a decentralized ledger utilized for data-sensitive loT networks. Thus, the growing e-commerce fashion is likely to improve the adaptation of online rental clothing options by customers globally.
Impact of Covid-19 on Online Clothing Rental Market
The global textile and clothing sector has been negatively affected by the COVID-19 outbreak. Many retailers deemed unnecessary were forced to close their physical stores due to lockdowns and social distancing policies implemented around the world. The majority of the purchases were made online at the same time because consumers were confined indoors. As a result, a lot of clothes rental businesses used online subscription-based services to attract customers. These services have assisted in expanding their customer base and stabilizing their market. However, the market for clothes rentals, which often catered to working professionals in urban settings and/or those preparing ready for parties, saw a fall in demand.
- September 2021: ThredUp will sell retired clothes from the rental wardrobe as part of the new collaboration between the secondhand shop and Rent The Runway, which was announced by the company. According to a ThredUp blog post, the partnership, dubbed "Revive by Rent The Runway," would combat fashion waste and triple the lifespan of garments. ThredUp's online store will serve as a platform to buy previously rented luxury apparel and accessories.
- April 2022: The renowned Danish premium womenswear and menswear brand Ganni has debuted their line of clothing on the rental marketplace Rotaro. The CEO and co-founder of Rotaro, Georgie Hyatt, stated that the company's goal is to shift consumers' purchasing habits away from rapid fashion and toward more conscious decisions. Through this partnership, Ganni and Rotaro hope to jointly create a more circular fashion future.
Global Online Clothing Rental Market Scope:
|Market Size Value in 2020||US$1.039 billion|
|Market Size Value in 2027||US$7.275 billion|
|Growth Rate||CAGR of 32.04% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||End-Users, Product Type, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Rent the Runway, Gwynnie Bee, LERNCO, INC., TULERIE, RAINEY'S CLOSET, Infinite Style by Ann Taylor, Express, AEO Management Co.|
|Customization Scope||Free report customization with purchase|
- By End-Users
- By Product Type
- By Geography
- North America
- South America
- United Kingdom
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
- North America
Frequently Asked Questions (FAQs)
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.4. Industry Value Chain Analysis
5. Global Online Clothing Rental Market, By End-User
6. Global Online Clothing Rental Market, By Product Type
7. Global Online Clothing Rental Market, By Geography
7.2. North America
7.2.1. United States
7.3. South America
7.5. Middle East and Africa
7.5.1. Saudi Arabia
7.5.3. United Arab Emirates
7.6. Asia Pacific
7.6.3. South Korea
8. Competitive Environment and Analysis
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. Company Profiles
9.1. Rent the Runway
9.2. Gwynnie Bee
9.3. LERNCO, INC.
9.5. RAINEY'S CLOSET
9.6. Infinite Style by Ann Taylor
9.8. AEO Management Co.
Rent the Runway
Infinite Style by Ann Taylor
AEO Management Co.
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