About the Report
The increasing demand for online clothing rental is driven by the inclination toward fashion. Brand awareness is quite high among consumers across the globe. Thanks to the improving internet penetration, customers are now preferring online purchase of clothes due to their easy accessibility and availability of an enormous assortment at a limited cost. This also is fuelling the demand for online rented clothes globally. Changing lifestyle and preference for party wear dresses, designer dresses, and dinner suits are likely to boost the online clothing rental market.
In its new study, ESOMAR-certified market research and consulting firm Future Market Insights (FMI) offers insights about key factors driving the demand for online clothing rental. The report tracks the global demand for online clothing Rental in 20+ high-growth markets, along with analysing the impact COVID-19 has had on the online clothing rental market.
How Historic and Future Outlook of Online Clothing Rental Market Compare?
The sharing economy has reshaped numerous aspects of the society. Availability of services such as companies Airbnb to Uber offering shared rides or rentals are highly sought-after. Lately, fashion rental platforms have gained immense traction, fuelling prospects for online clothing rental market.
Over the last decade, the sharing economy has brought forward different disruptive business models, progressively facilitated through the introduction of new digital platforms. The sharing economy empowers shoppers to rent, borrow, and swap idle capacities rather than buying the goods.
Fashion rental platforms have been positioned by the media as a radical new way to consume clothing that is both budget and environmentally friendly. Endorsements by some of the leading houses in media have promoted this new way of consuming.
Fashion rental platforms fundamentally focus on women’s wear; however new services are testing out the menswear market as well. These platforms typically operate either as business-to-consumer or peer-to-peer services. According to FMI’s analysis, Online Clothing Rental sales would grow at an 11.0% CAGR between 2021 and 2031.
How is Accessibility of Online Retail Fuelling Online Clothing Rental Global Demand?
Increase in the accessibility of online retail is the primary driver of the online clothing rental market. On account of the swift expansion of the Information and Communication Technology (ICT), e-Commerce shopping has grown rapidly over the last decade. Furthermore, the advancement in mobile internet technology has determined the demand for online shopping which makes the process significantly more convenient.
Moreover, the rapidly growing social occasions, casual occasions, and working-class in developing economies such as India, China, and Brazil among others have additionally extended the target population for the online clothing rental market. Thus, the aforementioned factors are anticipated to boost the global demand for online clothing rental orders in the foreseeable future.
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Is Renting a More Sustainable Way of Consuming Clothes?
In the present era, where industries are adopting sustainability as their core business strategy to entice more customers, products renting would be consider as a more sustainable way of consuming clothes. Wearing rental clothes would save environment and natural resources from carbon emissions and other harmful chemicals. Furthermore, manufacturers in the clothing industry could improve their social production standards by adopting clothing rental as a part of their business and sustainability strategy.
How Kid’s and Men’s Segments Creates Lucrative Opportunity for the Well-Known players?
The kid’s and men’s segments also offer various growth opportunities for online clothing rental companies. It has been observed that presently, parents are becoming style- and brand conscious about how to dress their children. Some children are even expressing their own choices when it comes to collection of clothes. With increasing spending capacity and changing kid’s lifestyle, the kids wear market is expected to benefit on a major scale. Hence, online clothing rental companies can leverage potential opportunities by expanding offerings in kid’s apparel.
How Creating Awareness in Middle East & African Countries is a big Opportunity?
Penetration of online clothing rental trend in Middle East & Africa countries is less than other developing economies. Thus, an increasing number of customers in these countries are inclined towards renting clothes by visiting physical stores rather than shopping online.
The Middle East is a developing market, which is anticipated to offer wider growth opportunities for both local and international clothing rental companies looking to extend their market operations in the region.
Awareness regarding online clothing rental with the help of effective and efficient advertisements and initiatives is expected to create significant growth opportunities for clothing rental conglomerates in the region.
How Rising Spending on Fashion Worldwide Impacting Growth?
A rising inclination for accessing designer garments and truly shifting fashion proclamations are fuelling the online clothing rental demand. With a rising focus on sharing instead of buying/owning, gaining instant access to products that one wants/desire to wear without repeating the similar attire again and again. Further, with rising awareness about the positive ecological impacts of the sharing economy are propelling the growth of the global online clothing rental demand.
Moreover, the increase in the spending power among consumers especially in developing countries such as India, China, Brazil, Egypt, and among others has been encouraging the market. This has fortified the demand for online clothing on a rented basis. Furthermore, rising penetration of smartphones and tablets across countries such as China, India, Indonesia, Brazil, and other parts of the globe is growing at a fast pace and is expected to fuel the revenue growth of the global online clothing rental market over the forecast period.
How Has Companies in Online Clothing Rental been Adversely Affected by COVID-19?
At a point when the pandemic hit, apparently overnight, demand for clothing rental which typically targeted working professionals in metropolitan workplaces and/ potentially for those getting ready for a big night out – came to a standstill, with lockdowns being upheld around the globe and individuals progressively picking loungewear over extravagance.
Since the start of the pandemic, customer spending on garments declined more than 50% in major markets, including the U.S., the U.K., and Germany. Rental platforms specifically confronted dwindling demand as customers began working from home and events such as weddings and celebrations were postponed, cancelled, or held virtually.
Further, in late April 2020, Business Insider reported that Rent the Runway had furloughed 35% of its staff, cutting marketing budgets, and reducing management salaries.
How is Lack of Customizability Hindering Online Rental Clothing?
Absence of customizability is a key restraint for the market. Rather than bought things of attire, which can be customize as per the individual’s measurements or even redid prior to purchasing, rental garments can't be acclimated to definitely meet the individual’s requirements. This leaves vast degree for discontent among customers of online clothing rental market services.
Furthermore, several online clothing rental companies are beginning to offer lucrative features to their customers. For instance, live chats with stylist are turning into an undeniably common feature, while some of the companies in online clothing rental offer similar product in two sizes so that customers may try them and pick the better fit. Thus, such lucrative solutions would help the companies to ascend their market penetration and attract more customers which in turn increase the demand for online clothing rental in the coming forecast period.
What are the Opportunities for Online Clothing Rental in India?
India has emerged as a highly lucrative market among South Asian countries owing to the increasing of the internet and rising customer awareness among consumers. Furthermore, in developing countries such as India, shoppers are finding a superior ways of getting to their preferred garments as opposed to buying them.
Increase in the spending of an individual, changing fashion trends, and the influence of West in India are enabling growth in the market. Players in the online clothing rental market even offer services at an exceptionally minimal cost with added benefits, such as free trials at home are some of the factors driving the demand for online clothing rental in the country.
What are the Opportunities for Online Clothing Rental in U.K.?
An estimated 350,000 tonnes of used clothing goes to landfill in the U.K. every year and around 30% of clothing in wardrobes has not been worn at least a year. Overconsumption and the inescapable disposal of unwanted garments has become a worrying worldwide problem – and in many cases these garments are unnecessarily thrown away. This in turn, creates a lucrative opportunity for the players in the online clothing rental in the country which would additionally assist to reduce the carbon dioxide emissions, and increase the life span of the garments.
What are The Opportunities for Online Clothing Rental in U.S.?
With a rising focus on renting instead of buying clothing that one pines to wear without reusing/repeating and rising awareness about the positive ecological impacts of the renting clothes are boosting the demand of the online clothing rental in the U.S.
With fashion evolving every day, consumers within the U.S. are showing their keenness in renting instead of spending on garments to refresh their wardrobes for each season. The U.S. exhibits presence of some of the leading clothing rental brands, including Rent the Runaway Limited, Gwynnie Bee, New York & Company Closet, among others.
On the back of these factors, the U.S. is expected to remain one of the leading markets globally. FMI has forecast it to account for the leading market share in North America.
What are the Opportunities for Online Clothing Rental in China?
China has emerged as a highly lucrative market for online clothing rental in East Asia. According to FMI, it is expected to continue leading the East Asia market through the course of the report’s forecast period. Online clothing rentals are identified as an emerging model of business in the Chinese fashion industry.
MsParis is among the first rental platforms in China and today it has over seven million registered users. Some of the other leading names in the China market are Y-Closet, Starluxe, and others.
Why Do Suits & Blazers Lead as Product Type?
Ethnic wear is expected to register a CAGR of more than 12.0% over the forecast period. As the ethnic outfits are mainly worn during festivals and special occasions thus, are usage of these outfits are very less. Hence, consumers prefer renting ethnic wear outfits instead of purchasing them.
However, Suits & Blazers are anticipated to hold the largest market share around 30.8% as they are expensive and require maintenance. Thus, the millennial population and price conscious customers find renting as a better option.
Which Consumer Orientation Accounts for Higher Sales?
In terms of consumer orientation, the global online clothing rental market will register high demand from the men and kids segment is projected to be the highest, with a CAGR of 12.5% and 8.4% respectively over the forecast period 2021–2031. The women segment is expected to remain dominant and is projected to account for 64.2% value share over the forecast period. A continuous demand for western designer dresses from women all across the globe is expected to fuel growth of the online clothing rental market over the forecast period.
Who are leading end users and what is the preferred business model?
The standalone model segment is expected to contribute comparatively higher revenues as compared subscription business model over the forecast period. However, the subscription model is expected to witness favourable revenue growth in the global online clothing rental market, registering a CAGR of 12.6% over the forecast period.
A key point to consider here is that the business-to-consumer model also leads but in terms of end user. It will not only hold dominance through the forecast period, but is expected to exhibit growth at maximum rate.
In the global online clothing rental market, large number of key players exit, rendering it highly competitive. They are focusing on various subscription models besides collaborations to gain competitive advantage. Besides this, they are introducing several attractive offers to gain traction. For instance, the New York & Company Closet has included a special button giving subscribers option to either gift their membership or redeem it.
Some of the leading companies operating in the market are:
- Rent the Runway
- GlamCorner Pty Ltd.
- Gwynnie Bee Company
- Mine for Nine LLC
- Dress Hire AU
- Rent The Front Row LLC
- Dress & Go Company
- Chic by Choice Company
- Style Lend Company
- Rent It Bae Company
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.
Scope of the Report
Historical Data Available for
USD Million for value
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia, Oceania Middle East & Africa
Key Countries Covered
US, Canada, Germany, U.K., France, Italy, Spain, Poland, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Vietnam, Indonesia, Australia, New Zealand, Saudi Arabia, UAE, Egypt, Turkey, Iran, Qatar, Oman, Kuwait, Bahrain, and Jordan.
Key Segments Covered
Product Type, Business Model, End-User, Consumer Orientation, and Region
Key Companies Profiled
Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives
Customization & Pricing
Key Questions Answered in the Report
- What is the Online Clothing Rental market size?
The global online clothing rental market is expected to witness a CAGR of 11.0% during the forecast period 2021-2031. As per FMI, the global online clothing rental market valuation is around US$ 1,861.2 Mn in 2021.
- Which is the most lucrative market for Online Clothing Rental?
Markets in North America and Asia-Pacific are expected to contribute significantly to the overall revenue growth of the global online clothing rental market. Rising fashion consciousness and increasing spending on fashion in these regions are key factors expected to enable growth in the online clothing rental market during the forecast period. Within North America, the U.S. has emerged as a highly lucrative market online clothing.
- Which are some of the leading companies in the Online Clothing Rental?
Some of the leading companies in online clothing rental market are Runway, Rotaro, GlamCorner Pty Ltd., Gwynnie Bee Company, Mine for Nine LLC, Dress Hire AU, ThreadTread, Nuuly, Rent The Front Row LLC, Dress & Go Company, Chic by Choice Company, Style Lend Company, Rent It Bae Company, and among others.
Enquiry before Buying
Is this research conducted by Future Market Insights?
Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to a research analyst
What research methodology is followed by FMI?
FMI follows a methodology that encompasses demand-side assessment of the market and triangulates the same through supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions. Request detailed methodology
Who are the respondents for primary research?
FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.
What are the sources of secondary research?
FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
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Online Clothing Rental Market by Category
- Trousers & Jeans
- Suits & Blazers
- Coats & Jackets
- Skirt & Shorts
- Ethnic Wear
- Standalone Model
- Subscription Model
- Business-to-Business (B2B)
- Business-to-Consumer (B2C)
- Consumer-to-Consumer (C2C)
- North America
- Latin America
- East Asia
- South Asia
- Middle East and Africa (MEA)