Online Clothing Rental Market Is Estimated To Witness High Growth
The online clothing rental market involves renting of clothing items such as dresses, tops, jeans, blazers and other accessories through online portals or apps for a limited period of time. Renting clothes offers numerous benefits over outright ownership such as access to high-end designer pieces at affordable prices, reduced environmental impact and option to change latest fashion trends frequently without spending much.
The Online Clothing Rental Market is estimated to be valued at US$ 8388.654692 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:
One of the major trends driving the growth of online clothing rental market is the increasing awareness about sustainable fashion. Disposable fast fashion has increased environmental footprint due to high water and chemical usage in production and shorter lifecycle of clothes. Online clothing rentals provide an eco-friendly alternative by optimizing clothing utilization through sharing. It minimizes textile waste generation as clothes are reused by multiple customers over longer duration before final disposition. The trend towards reduced clothing consumption and support for sustainable brands is propelling the popularity of clothing rentals especially among millennial population.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate in the online clothing rental market. Establishing an online platform and acquiring inventory requires significant capital investments which pose as a barrier for new players.
Bargaining power of buyers: The bargaining power of buyers is high as there are numerous online clothing rental platforms providing similar products and services. Buyers can easily switch between platforms based on pricing and product offerings.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many clothing manufacturers and brands that supply inventory to online rental platforms. However, popular clothing brands hold some bargaining power.
Threat of new substitutes: The threat of new substitutes is low as there are limited substitutes for online clothing rentals that provide the convenience of renting high-fashion clothes for a short period of time.
Competitive rivalry: High due to presence of numerous established players.
SWOT Analysis
Strengths: Wide selection of trendy clothes from premium brands, convenience of renting clothes from home, subscription plans offered by some players.
Weaknesses: Heavy return/replacement costs incurred by platforms, hassles of cleaning and processing returned clothes.
Opportunities: Growing fashion consciousness among consumers, untapped regional markets.
Threats: Rising environmental concerns around fast fashion, preference for owning clothes among some.
Key Takeaways
The Global Online Clothing Rental Market Size is expected to witness high growth, exhibiting CAGR of 4.8% over the forecast period, due to increasing fashion consciousness among consumers. The market size for 2023 is US$ 8388.654692 Mn.
Regional analysis - North America dominates the online clothing rental market currently due to high adoption of subscription based services in countries like the US. Asia Pacific is expected to showcase significant growth owing to rising incomes and expansion strategies of key players in the region.
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. Rent the Runway is currently the largest player with presence across various clothing categories like occasion wear, career wear and more.
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