Why Apparel Businesses Heavily Invest in Online Clothing Rental Services?

Highlights

• Introduction
• Futuristic trends in the online clothing rental sector
• Recent product launch and collaboration

Online clothing rental services provide a simple and cost-effective means of obtaining high-end designer clothing. The environmental footprint of fast fashion is substantial. Opting for clothing rental is a more sustainable choice, prolonging the lifespan of garments, promoting a circular fashion economy, and reducing fashion waste by reusing clothing items. Clothing rental services offer the convenience of a temporary wardrobe without the hassle of storage or the need to pack bulky luggage with numerous clothing items.

Online clothing rental services offer access to a wide range of clothing styles, including ethnic and western. Ethnic wear carries cultural heritage and tradition to various regions or communities, holding different meanings depending on the context. The rise in popularity of sustainable clothing in developed and developing economies is expected to boost the demand for ethnic clothing rental in future. Owing to these factors, the ethnic segment is anticipated to hold an absolute revenue growth of $801.1 million by 2032.

Online clothing rental industry trends accelerated the expansion of the industry

Online clothing rental services offer users access to a diverse range of clothing without permanent purchases. This trend aligns with the dynamic fashion landscape, where variety and affordability are important, with a commitment to environmental responsibility.

Surge in popularity of the subscription model

The success of subscription services across various industries has shaped the landscape of online clothing rental businesses. Platforms have embraced flexible subscription models, allowing customers to rent unlimited items per month or a specific quantity at a time. This approach caters to consumers' desires for convenience and variety, while also nurturing customer loyalty and generating recurring revenue for rental companies.

Adoption of sustainable fashion

The fashion industry adopted sustainable practices due to the rise in environmental awareness among consumers. Online clothing rental services offer a solution by allowing people to enjoy trendy items without contributing to textile overproduction and waste. Rental companies make profit by collaborating with eco-friendly manufacturers and implementing environmentally conscious garment care procedures.

Virtual try on has gained popularity

 AR (Augmented Reality) try-on applications have revolutionized the online shopping experience for accessories and clothing. Customers virtually try on fashion accessories using smartphones or other devices with AR technology. It overlays digital clothing representations onto live videos or real-world images of the customer, creating an immersive and realistic try-on experience. This technology allows customers to visualize how a specific garment fits and suits their style, enabling them to make more confident purchase choices. AR try-on improves the online shopping journey of customers, reducing the uncertainties associated with buying clothes online by reducing return rates and boosting customer satisfaction.

Asia-Pacific has increasingly adopted online clothing rental services

The surge in youth population, coupled with their inclination toward luxury and designer clothing without compromising their budget is a pivotal driver for online clothing rental sector expansion. The increase in disposable income of consumers in nations such as India and China along with the rise in influence of Western culture in these developing economies, is anticipated to fuel the growth of the online clothing rental industry in the Asia-Pacific region in the coming years. Among the emerging countries in Asia-Pacific, India is projected to manifest the fastest CAGR of 11.3% by 2032.

Frontrunner’s strategies to strengthen its position in the competitive sector

The global online clothing sector has expanded rapidly, and top entities in the domain have adopted novel strategies to dominate the sector. These strategies assist top entities to explore the online clothing rental industry opportunities and gain a competitive edge. For instance, British online fashion retailer, ASOS introduced its rental collection in collaboration with the prominent UK rental firm, Hirestreet, in May 2023. The collection includes over 180 styles primarily focused on women's attire. 

The ASOS edit offers a wide range of wedding outfits for guests, brides, and bridesmaids. It includes options for different sizes, such as curve, petite, & tall, and is selected from ASOS' in-house brands, including ASOS Design, ASOS Edition, and ASOS Luxe. Customers rent individual items for durations of 4, 10, and 30 days, as stated in the media release.

Similarly, in July 2022, Saks OFF 5TH, a leading luxury off-price destination collaborated with Rent the Runway, the largest shared designer closet, to offer Saks OFF 5TH customers direct access to pre-owned designer fashion for the first time. On SaksOFF5TH.com, customers now explore a selection of pre-owned merchandise from Rent the Runway, featuring hundreds of styles from over 60 renowned designer brands. These items cater to various occasions, including work, vacation, and date nights.

 

To sum up, online clothing rental offers the convenience of a temporary wardrobe without the hassle of storage or the need to pack bulky luggage with numerous clothing items. Moreover, platforms offering rental services thrive due to the rise in adoption of circular economy principles. These services offer users access to a diverse range of clothing without permanent purchases.

 

For future projections of the global online clothing industry with a competitive landscape and investment opportunities, feel free to reach our analyst!

Related Post