Online Clothing Rental Market

Market Definition:

The Online Clothing Rental Market size was valued at USD 1.39 billion in 2021 and is predicted to reach USD 3.13 billion by 2030 with a CAGR of 8.9% from 2022-2030.

Online clothing rental allows people to rent garments for a certain period of time from a huge collection of clothes. It benefits individuals who intend to wear new garments for occasions such as weddings, corporate meetings, and photoshoots. It not only provides variety but also offers budget friendly option for the customers with monetary constraints that restricts them to purchase the brand of their choice. Furthermore, online clothing rental services are also useful for individuals going through temporary changes in their physique, such as pregnant women.

Market Dynamics and Trends

Increasing demand for fashionable outfits due to changes in clothing habits, along with the rollout of designer clothes are driving the growth of online clothing rental market. Many start-ups have recently emerged in this space and are trying to help their customers to significantly minimize the nondiscretionary spending on apparels. For instance, Rent Your Wardrobe, an UAE based start-up, has identified a gap for a subscription service of garments. Apart from reducing the spending on apparels, they are also trying to address the sustainability challenges in the fashion industry.

However, delivery management challenges, trust issues between the suppliers and customers, and hygiene concerns are expected to retard the growth of online clothing rental market. On the contrary, growing online market for luxury fashionable clothes for women along with the availability of variety of clothes are expected to create lucrative opportunities for the market players in the future.

Market Segmentations and Scope of the Study:

The online rental clothing market is segmented on the basis of product type, demography, dress code, business model, and geography. On the basis of type, the market is divided into knitwear, trousers and jeans, jumpsuits, suits and blazers, coats and jackets, skirts and shorts, ethnic wear, formal, casual, traditional, and others. Based on demography, the market is classified into men, women, and kids. On the basis of dress code, the market is categorized into formal, casual and traditional. On the basis of business model, the market is categorized into standalone model and subscription model. Geographic breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America holds the lion share of online rental clothing market during the forecast period. This is attributed to factors such as increasing prevalence of theme parties and events that requires specific dress code for limited time period such as Halloween, Christmas, and others.

Asia Pacific, on the other hand, is expected to develop rapidly over the forecast period due to presence of developing nations such as India, China and Japan with increasing adoption of online rental clothing in film and fashion industries. Furthermore, various governments are promoting circular fashion industry and taking initiatives such as Digital India, Skill India and China plus one scheme for motivating entrepreneurs, which in turn are expected propel the growth of online rental clothing market.

Competitive Landscape

The online rental clothing market is comprised of various market players such as Rent the Runway, Rotaro, Glamcorner Pty Ltd., Gwynnie Bee Company, Mine for Nine LLC, Dress Hire AU, ThreadTread, Nully, Rent the Front Row LLC and Dress & Go Company. These market players are adopting various joint venture strategies and planning expansion of business across various regions to maintain their dominance in the online rental clothing market.

For instance, in October 2021, H&M has launched a block-chain based clothing rental service with scannable loT labels on the garments. These garments are used for instant hire by scanning loT connected stickers with their smartphone. Also, in November 2021, Rixo, an apparel and fashion company, collaborated with rental platform Rotaro. The partnership aimed to allow customers rent Rixo occasion wear including Rhea, Lorence, And Lolita at an affordable rate. These initiatives by the market players are expected to increase the level of competition and attract more customers in online rental clothing market.

KEY PLAYERS

• 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