DUBLIN--(BUSINESS WIRE)--The "Online Clothing Rental Market by Product Type, Business Model, End User, Age Group and Region - Forecast 2022-2032" report has been added to ResearchAndMarkets.com's offering.
The online clothes rental market size will significantly grow between 2021 and 2031. The market is projected to produce US$ 1.8 billion by 2021.
The subscription model is a new style that the clothing rental market is beginning to adopt. It appeals to retailers that must quickly adjust to shifting consumer tastes before particular styles become unpopular.
Despite declining garment sales, the clothing rental industry is expanding its assortments under subscription model plans to reach its clients. The subscription model generates recurrent income in addition to providing potential clients with expertise with clothes rental businesses. However, retailers could be able to sidestep the expenses associated with conventional brick-and-mortar enterprises.
The market for clothing rentals and subscriptions also provides designers with immediate access to consumer preferences. The online clothing rental subscription industry is also broadening its consumer base by needing specialty/niche markets. Some of them are employing novel strategies to get traction. For instance, Gwynnie Bee offers plus-size consumers rental clothes, in contrast to other online fashion rental businesses.
In the meanwhile, Union Station wants to do away with the hassle of purchasing bridesmaid dresses, which are frequently expensive and chosen based on the lady, not the wearer's tastes and style. The company allows women to pick out dresses for their bridesmaids, which can then be returned after being dry-cleaned.
Therefore, online garment rental aims to reduce clients' spending on new apparel for any special occasion or purpose.
COVID-19 Causing Disruptions in Online Clothing Rental
Online garment rental was slated for sustainability before COVID-19, but the pandemic has created substantial delays as occasions like weddings, social gatherings, and other festivities had to be postponed due to the implementation of lockdown in numerous countries around the world.
Rental demand fell, according to businesses like Rotaro, Rent the Runway, and others. Since the majority of online garment rental businesses depend on events, the pandemic period saw a significant impact on the industry when there were no events and few people going out.
Key Takeaways from the Online Clothing Rental Market Study
- The latest study has forecast the market to rise at a CAGR of ~11.0% between 2021 and 2031
- The U.S. has emerged as a highly lucrative market, accounting for nearly 95% of the North America market
- The U.K. is projected to register 11.8% Y-o-Y growth in 2021, performing exceedingly well within the Europe market
- Germany and France will continue exhibiting high demand for online clothing rental
- Within East Asia, the demand for China and South Korea is expected to be higher than Japan
Who is winning?
- Rent the 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, Mr. & Ms. Collection, The Secret Wardrope, Banana Republic LLC, Le Tote Company, and Lending Luxury are some of the major players in the online clothing rental
- In September 2020, to meet the changing preference/needs of today's shoppers Rent the Runway implements new clothing subscription model plans which include dry cleaning and rental coverage, free shipping and returns, and members-only discounts. Further, the company is also using sustainable strategies to improve the environment by using recyclable garment bags.
- In 2019, the Gap Inc. owned company Banana Republic LLC had partnered with CaaStle and launched 'style passport' an online rental subscription for women. This would help the company to connect with millennials and Gen Zs who would to experience fashion in a sustainable manner.
Key Market Trends
Key Trends Impacting the Market
- Various Fashion Designers Are Incorporating Recycling Programs and Introducing New Collections with Eco-Friendly Fibers
- Good Looks Have Become a Matter of Self-esteem among Customers
- Millennials are a Driving Force
- Rapid Emergence of Start-ups in Online Clothing Rental Market
- Growing Trend of Personal Grooming among Men
- Globalization Impacting Lifestyles
- Rapidly Growing Online Start-Ups to Sell Pre-Owned Branded and Designer Apparel
- Consumers are Demanding Changes
- Consumers Selecting At-home Services, Using E-Commerce
Product Innovation Trends
- Manufacturers Increasingly Spending on R&D and Stepping Up Eco-friendly Material
- The end of ownership to user ship for fashion products
- Prominent Players are Now Diversifying Into Other Profitable Segments
- Technological Advancements are Shaping the Online Clothing Rental Market
Future Prospects of Online Clothing Rental Industry
- Factors Fueling Growth
- Influx of Brands
- Innovative Distribution & Marketing Strategies
- By Rotation LTD
- Casstle. Inc
- Chic by Choice Company
- Dress & Go Company
- Dress Hire AU
- Gap Inc.
- GlamCorner Pty Ltd.
- Le Tote Inc.
- Mine for Nine, LLC
- Mr. & Ms. Collection
- MY WARDROBE HQ
- Others (As per Request)
- RENT It Bae Company
- Rent The Front Row LLC
- Rent the Runway
- STYLE Lend Company
- The Secret Wardrope
- Thread Rentals
- Urban Outfitters
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