by The online clothing rental market provides subscription-based online clothing rental services. Customers can rent different clothing items such as dresses, tops, bottoms and others for a specific period through online platforms. These platforms offer a wide range of clothing from various designers and brands at affordable prices. The online rental model is a sustainable and economical option compared to outright purchasing of clothes. It allows customers to wear new designs without spending much. The online platforms also offer cleaning, processing and delivery services at customers’ doorsteps.
The global Online Clothing Rental Market is estimated to be valued at US$ 8388.654692 Mn or Mn in 2023 and is expected to exhibit a CAGR of 4.8% 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 fast fashion among millennial is a key trend fueling the demand for online clothing rental services. Customers prefer renting clothing for occasional use such as parties, events or vacation instead of buying them. This helps them explore latest fashion trends at low costs. Another major trend is the increasing adoption of subscription models by online rental platforms. Customers can subscribe different membership plans offering clothing credits or allotted number of rentals per month or year. Some platforms also offer personalized styling services where professional stylists handpick clothing as per customers’ needs and preferences. The evolving sustainable fashion movement is also driving more consumers towards renting clothing to reduce apparel waste.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the online clothing rental market is moderate as renting niche markets require substantial initial investments for building brand and gaining consumer trust. Further, established players enjoy economies of scale and brand loyalty making it difficult for new entrants.
Bargaining power of buyers: The bargaining power of buyers in the online clothing rental market is high due to presence of several alternate clothing rental service providers. Buyers can easily switch between brands based on assortment, pricing and service quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While few global brands dominate the apparel manufacturing, tailoring small batches for online rental service creates dependency on suppliers.
Threat of new substitutes: Threat from substitutes like offline renting/leasing, purchase of used clothing is low due to unique value proposition of online rental model in terms of assortment, convenience and affordability.
Competitive rivalry: Intense competition exists among established brands on the basis of variety, pricing and customer experience.
Key Takeaways
The Global Online Clothing Rental Market Demand is expected to witness high growth, exhibiting CAGR of 4.8% over the forecast period, due to increasing focus on sustainable fashion and need for affordable clothing options.
Regional analysis indicates North America dominates the market currently owing to higher adoption of sharing economy model. However, Asia Pacific is expected to fastest growing market led by China, India and other Southeast Asian countries where online rental concept is gaining popularity quickly.
Key players operating in the online clothing rental market are Rent the Runway, Poshmark, Elanic Services Private Limited, Dress & Go, GlamCorner Pvt Ltd., Envoged, Etashee, Secoo Holdings Limited, and Secret Wardrobe.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
