May 28, 2024
Online Clothing Rental Market

Online Clothing Rental Market Is Expected To Be Flourished By Rising Demand For Sustainable Fashion

Online clothing rental involves renting apparel, accessories, and other fashion items through online channels and subscription services for a monthly/weekly fee instead of purchasing. With a growing number of people opting for rental clothes over ownership, the online clothing rental market allows accessing a variety of high-quality fashion pieces without the ownership responsibilities. Rental customers can try out different looks with latest trends, sizes, and styles conveniently at lower costs than if the items were purchased. The rental business model promotes sustainable fashion by optimizing product usage and reducing waste from overconsumption.

The global online clothing rental market is estimated to be valued at US$ 8388.65 million in 2024 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 Dynamics:

The rising demand for sustainable fashion is a key driver for the growth of the online clothing rental market. Customers are increasingly becoming aware of the environmental impact of fast fashion and want to minimize clothing waste. Renting clothes is considered more eco-friendly compared to purchasing new items after a few wears as it reduces the need for production of additional clothing inventory. Another driver is the increasing popularity of subscription-based services. Major online clothing rental platforms offer flexible subscription plans for a monthly fee, making it affordable to rent different apparel regularly without large upfront costs. This subscription model is gaining customer traction, especially among the cost-conscious millennial generation.

Segment Analysis

The online clothing rental market is dominated by women’s wear which accounts for more than 60% share. Women are increasingly adopting clothing rental as it allows them to wear different dresses at affordable prices without actually owning them. The women’s wear segment is expected to remain the major revenue generator owing to growing fashion consciousness among females. The kidswear segment is also growing steadily as more parents opt for clothing rentals to fulfill the growing clothing needs of kids in a cost-effective manner.

PEST Analysis

Political: The regulations regarding online businesses and sharing economy are becoming more conducive which is supporting the growth of online clothing rental market. However, different regions have varying policies.
Economic: Rising per capita incomes and growing women workforce is driving the economic prospects of online clothing rental market. The affordable subscription models also appeal to cost-conscious consumers.
Social: Changing lifestyles and increasing preference for experience over ownership is boosting subscription-based services like clothing rentals. Rising environmental consciousness is also favoring renting over fast fashion.
Technological: Advancements in rental management software and mobile-responsive websites/apps are enhancing customer experience in the online clothing rental market. Technologies like AI and IoT could further optimize inventory management.

Key Takeaways

The global Online Clothing Rental Market Growth  is expected to witness high growth. North America is currently the dominant as well as the fastest growing region due to early adoption of sharing services. Brands like Rent the Runway and Le Tote have huge consumer base in the region.

Key players operating in the online clothing rental market are Cisco, Gap, HealthCare, IBM, Juniper, Microsoft. Key players like Cisco and Microsoft are investing in strengthening their networking and cloud capabilities respectively to enhance operations of clothing rental brands.

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