Online Clothing Rental Market Size (2024 – 2030)

According to a recent research report, the global Online Clothing Rental Market attained a valuation of USD 1437.8 Billion in 2023 and is projected to reach USD 2910.61 Billion by 2030. This sector is experiencing a robust Compound Annual Growth Rate (CAGR) of 10.6% from 2024 to 2030. The primary impetus behind this expansion is the increasing prevalence of online retail. Factors such as technological advancements, widespread internet accessibility, and the rising popularity of online shopping platforms in recent years are major contributors to the industry's growth.

Industry Overview:

Enthusiasts of fashion who may have limited resources to purchase desired attire are encouraged to take full advantage of the available options. The act of renting clothing offers substantial benefits in an industry characterized by ever-evolving trends, where consumers are often disinclined to wear the same garments repeatedly. Clothing, also known as apparel or attire, encompasses items worn by individuals. Predominantly fashioned from yarn or textiles, clothing may also include materials such as animal hides or other thin sheets combined through sewing techniques. Clothing serves as an integral aspect of human societies, primarily designed for the comfort and protection of individuals. The quantity and style of clothing worn are influenced by factors such as gender, body shape, social status, and geographical location. The essence of renting clothes lies precisely in its definition as elucidated in this discourse. The reality of clothing rental diverges from the conventional practice of purchasing garments outright. The duration for which an item can be rented varies depending on the service provider, typically spanning from a week to a month. Additionally, online clothing rental enterprises extend a valuable service, permitting customers to lease clothing for specified periods. For individuals on a budgetary constraint, rental services present a cost-effective solution, granting access to apparel from preferred brands. Furthermore, the practice of product rental aligns with contemporary sustainability efforts within the industry, as businesses increasingly incorporate sustainability into their core strategies to attract a discerning clientele. Opting for rental attire not only reduces one's carbon footprint but also minimizes exposure to harmful substances.

COVID-19 Impact on Clothing Rental Market

The COVID-19 pandemic has exerted a substantial adverse impact on the textile industry at large, resulting in a considerable decline in sales. Stringent lockdown measures and enforced social distancing protocols worldwide compelled numerous non-essential retailers to shutter their physical storefronts. Concurrently, consumers confined to their residences turned to online platforms for most of their shopping needs. Consequently, several clothing rental enterprises pivoted to online subscription services. These initiatives facilitated broader consumer reach, thereby stabilizing the market and are anticipated to yield positive outcomes throughout the forecast period. The global online clothing market prominently features a significant share from the women's segment, owing to factors such as frequent participation in corporate and social functions, avid following of international designer brands, and active engagement on social media platforms offering discounts and promotions. Notably, the formal wear rental segment is poised for substantial growth, as consumers tend to accumulate casual attire in bulk while favoring a select few formal outfits.

MARKET DRIVERS:

The surge in Subscription Services adoption is propelling market growth.

Following the pandemic, there has been a notable uptick in Subscription Market activities. Through these subscription models, customers can lease three or more garments concurrently for a defined period in exchange for a monthly fee. This approach has enabled companies to expand their consumer base significantly, consequently fostering market growth.

The escalating desire among individuals to maintain a stylish appearance is also fueling market expansion.

The rising prominence of Experimental Marketing is another driving force behind market growth. In today's era, individuals aspire to present a stylish image, often experimenting with their attire. Clothing stands as a focal point for observers, influencing the choice to experiment with different looks, thereby attracting attention and potentially enhancing one's profile.

MARKET RESTRAINTS:

Instances of fraud and failure to return rented garments are hindering market growth.

Numerous cases have surfaced wherein customers retain rented products for extended durations without returning them, raising concerns of fraudulent practices among market providers. Additionally, instances of incorrect orders and delivery discrepancies have impeded market growth, thereby necessitating measures to address these challenges.

Online Clothing Rental Market - By Dress Code:

• Formal
• Informal
• Traditional

In terms of Dress Code classification, DressTraditional rentals are projected to experience a Compound Annual Growth Rate (CAGR) exceeding 11.2% during the forecast period. Folk costumes are seldom utilized outside of festive and special occasions, leading consumers to favor rental options over purchases.

Formal attire is anticipated to command the largest market share, accounting for approximately 48.0%. Items such as suits and blazers, characterized by their expense and maintenance requirements, are increasingly being rented by budget-conscious young consumers seeking more financially viable alternatives. The informal wear segment, encompassing sportswear, will also maintain a significant market share throughout the forecast period. Notably, athletes lacking access to sportswear can conveniently rent such apparel from online platforms.

Online Clothing Rental Market - By End-User:

• Men
• Women
• Others

Categorized by End-User, the online clothing rental market is segmented into men, women, and children. Women represent the predominant market share, exceeding 58.0%, and are poised for substantial growth owing to the ever-evolving fashion landscape.

Conversely, the Children segment is slated to register a noteworthy CAGR in the forecast period. Parents opt for clothing rentals due to the rapid growth of children necessitating frequent wardrobe changes. This trend is expected to bolster the number of lessors participating in the market, thereby positively influencing market growth.

Online Clothing Rental Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East
• Africa

From a geographical perspective, North America leads with a market share of approximately 40% and is expected to witness significant CAGR in the foreseeable future. Within North America, the United States dominates the market share and is projected to achieve a CAGR exceeding 8.0% throughout the forecast period. Europe follows as the second-largest segment, claiming roughly 27% of the market. Western Europe stands out within the region due to its high purchasing power and fashion-forward consumer base in countries such as France, Italy, and the United Kingdom.

The Asia Pacific region emerges as the fastest-growing segment, fueled by heightened demand from burgeoning economies such as India and China. Increasing consumer awareness and widespread internet penetration serve as major growth drivers for the region. With India and China collectively constituting over 34% of the global population, the rising consumer consciousness within these nations is poised to significantly impact overall growth. Clothing rental emerges as an ideal solution for consumers in these developing economies, providing a convenient alternative to traditional purchases.

Online Clothing Rental Market Share by Company:

1. The Clothing Rental
2. Rent the runway
3. Flyrobe.com
4. Share Wardrobe
5. Secoo Holding li Missed
6. Gwynnie Bee
7. Le Tote
8. Swapdom
9. StyleLend
10. Dress Hire

Companies and online retailers are uniting efforts to provide consumers with unparalleled products, aiming to eliminate market ambiguity.

Suppliers are investing in research and development to introduce technologically advanced systems, thereby gaining a competitive edge and bolstering the industry's economic prospects. The industry is poised to witness numerous mergers and acquisitions in the coming years, as companies proactively seek to expand their market share and diversify their product offerings.

Recent Developments in the Online Clothing Rental Market:

• Product Launch and Collaboration - In April 2021, Marks & Spencer collaborated with Hire street to launch its inaugural clothing rental trial. The M&S rental edit comprises over 40 women swear pieces from its Autograph range, showcasing premium fabrics such as leather and silk, alongside the latest dresses from its M&S x Ghost collaboration.
• Collaboration – In December 2021, Burberry partnered with My Wardrobe HQ to expand its circular fashion initiative, announcing plans to launch rental and resale services. The rental offerings include trench coats, handbags, and scarves.

Product Launch - In September 2021, retail fashion giant H&M unveiled a blockchain-based clothing rental service featuring scannableIoT labels on garments. Customers can swiftly rent garments by scanning the IoT-connected stickers with their smartphones. This implementation of blockchain technology, renowned for its decentralized ledger used in data-sensitive IoT networks, ensures the secure tracking of rental information for each garment.