The new kid on the block in the apparel market is the growing segment of rental fashion garments as the need to wear newest fashion trends on a budget by social influencers and Gen Z keeps growing. As fashion brands' rental market for specific occasions fuel growth few top luxury brands are now jumping into the rental and resale bandwagon. With industry forecast expectations of the global online market for clothing rentals expanding at a strong CAGR of 11 per cent between 2021 to 2031 many brands are now eyeing the icing on the fashion market cake.
Garments on rent were earlier considered to be inferior hand-me-downs and out-of-date, many customers kept their fashion seconds a secret as it came with a social stigma. However, it’s a changed situation now with social media taking over and people recognizing the practicality of hiring expensive garments for a one-time use instead of splurging on buying one. Renting designer clothing, wedding and graduation outfits and many other occasion-specific clothes costs just a fraction of the original cost and is just as glam.
“Growing sustainability awareness and the technologically sophisticated Indian youth are driving the industry's expansion. Rental fashion offers various solutions, including tackling the waste problems of fast fashion and promoting a circular economy by extending the lifespan of clothing. Rentals are a mindset change business and since transparency and brand values are important to Generation Z and millennials, they appreciate brands that are digitally focused and environmentally friendly,” explains Aanchal Saini, CEO, Flyrobe, a wedding dress rental service.
Social media penetration revamps market
Technological advancements, internet penetration, growing popularity of fashion vlogs and film industry and increasing popularity of online retail over the last few years are the strong factors driving market. Subscription model is a new style that the clothing rental market is beginning to adopt. It appeals to retailers that must quickly adjust to shifting consumer tastes before particular styles become unpopular.
The size of the online clothing rental market is expected to significantly grow between 2021 and 2031 and is projected to produce $1.8 billion. Future Markets Insights in its study has forecasted the US has emerged as a highly lucrative market, accounting for nearly 95 per cent of the North American rental market. The UK is performing well within the Europe market with an 11.8 per cent Y-o-Y growth in 2021. Germany and France are strong contenders while demand in China and South Korea is expected to be higher than in Japan. Manufacturers are showing increased attention to children's segments as kids have become more style and brand conscious and yet outgrow their clothes quickly. However, due to the plethora of unorganized manufacturers selling low-cost, non-branded goods, hampering the branded segment, this is a tricky segment indeed.
Diversifying its product offering, experimenting with various business strategies, and taking into account customer input, the industry has evolved. Some major players dominating the market are: Rent the Runway, Rotaro, GlamCorner, Gwynnie Bee Company, Mine for Nine, among others.
With the environmentally friendly option of recycling clothes having become the new normal, today’s consumers are sharing outfits with practicality and versatility going hand in hand. The new cool of luxury garments is a revamped and pre-loved one and it is here to stay.
