May 24, 2024
Online Clothing Rental Market

Online Clothing Rental Market is Trending due to Increased Focus on Sustainability

The online clothing rental market provides an on-demand subscription service for branded apparel, clothes, and accessories online. Online clothing rental services offer a wide variety of apparel items across various categories like formal wear, occasion wear, maternity wear, sportswear, and more which can be rented by women and men for a fixed time period at affordable prices.

The Global Online Clothing Rental Market Size is estimated to be valued at US$ 9,663.73 billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period from 2024 to 2030.

Key Takeaways

Key players operating in the online clothing rental market
Key players operating in the online clothing rental market are Cisco Systems, Juniper Networks, Fortinet, Palo Alto Networks, Barracuda Networks. These companies have been investing in developing advanced clothing rental platforms and expanding their product portfolios to cater to the growing needs of the market.

Growing demand in the market
Rapidly changing fashion trends and increased focus on sustainability are the major factors driving the demand in the online clothing rental market. More consumers are opting for rental clothes over ownership due to affordability and ease of access to a variety of apparel.

Global expansion of the market
Leading clothing rental platforms are expanding their global presence by entering new geographical areas to tap the untapped potential. Strategic partnerships with local players are helping global brands to establish strong distribution networks internationally and cater to the diverse needs of global consumers.

Market key trends

Increased adoption of subscription models is a key trend in the online clothing rental market. Most prominent brands are launching flexible subscription plans at competitive pricing to offer continuous access to new collections and create a recurrent customer base. Affordability and convenience offered through subscriptions are boosting their popularity among online shoppers.

Porter’s Analysis

Threat of new entrants: Low barrier for startups with digital platforms but established players have economies of scale and brand recognition.

Bargaining power of buyers: Individual customers have high bargaining power due to availability of substitutes but businesses have limited bargaining power due to dependence on IT systems.

Bargaining power of suppliers: Suppliers of networking hardware and software have moderate bargaining power as customers require compatibility but competitors offer alternatives.

Threat of new substitutes: New communication technologies pose future threats but no major substitutes exist currently.

Competitive rivalry: Intense competition among global and regional players to maintain existing customers and acquire new ones through continuous product innovation and expansion of product portfolios.

Geographical Regions

North America holds the largest share in the online clothing rental market currently accounting for over 40% of the total market value led by high demand in the United States. Europe is the second largest region due to growing popularity of subscription-based fashion rental services in countries like the United Kingdom, Germany, and France. Asia Pacific region is expected to be the fastest growing market during the forecast period with double digit CAGR driven by emerging young population in India and China looking for on-demand access to premium fashion brands.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it