by Online clothing rental involves renting dresses, suits, accessories and other apparel items for a specific period through digital platforms. It allows users access to a variety of high-end fashion and designer garments at affordable prices without actually buying them. This rent-instead-of-buy model offers flexibility and convenience to users. With rising environmental concerns and changing consumer preferences towards sustainable fashion, the online clothing rental market is gaining traction.
The global Online Clothing Rental Market is estimated to be valued at US$ 8388.65 Mn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
The growing popularity of subscription-based business models is one of the key factors driving the online clothing rental market. Major online clothing rental platforms offer subscription packages for a fixed monthly fee, giving access to a certain number of garments per month. Subscription-based models allow users constant access to new inventory without spending money on each rental. They offer hassle-free rentals within budget and are gaining favor with young consumers who want variety and experiences over ownership. Subscription models provide a recurring customer base for online retailers and stable revenues. This subscription economy approach is boosting the online clothing rental market substantially. Major players are launching new subscription tiers and packages to cash in on this growing trend, thereby strengthening their positions in the market.
SWOT Analysis
Strength: Online clothing rental provides greater convenience and accessibility to customers. It allows customers to try different styles without long-term commitments.
Weakness: Customers may prefer to own clothes rather than rent them periodically. Unattended damages to rented clothes can impact brand reputation.
Opportunity: Younger customers are increasingly adopting shared economy models. Growth of e-commerce and m-commerce is facilitating the clothing rental business online.
Threats: Customer data security is a challenge. Traditional retailers can enter the online clothing rental segment.
Key Takeaways
The Global Online Clothing Rental Market Demand is estimated to be valued at US$ 8388.65 Mn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030.
The global online clothing rental market is expected to witness high growth. North America currently dominates the market owing to high smartphone and Internet penetration. Growing health awareness is also influencing customers in North America to shift from fast fashion to more sustainable rental models. The APAC region is projected to be the fastest growing market for online clothing rentals driven by rising disposable incomes and increasing preference for renting luxuriouswear among middle-class populations in China, India, and Southeast Asian countries.
Key players operating in the online clothing rental market are Rent the Runway, Le Tote, Clothingbox, FlyRobe, Swapdom, Style Lend, and The Mr. & Ms. Collection. Rent the Runway is a market leader focusing on specialized luxury and designer wear rentals while Le Tote provides a large variety of inventory across categories at affordable monthly prices.
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Source: Coherent Market Insights, Public sources, Desk research
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
