The online clothes rental market is set to see significantly growth between 2021 and 2031, projected to $1.8bn by 2021.
According to data from Future Markets Insight, the 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.
Despite declining garment sales, the clothing rental industry is expanding its assortments under subscription model plans to reach its clients. The subscription model generates recurrent income in addition to providing potential clients with expertise with clothes rental businesses. However, retailers could be able to sidestep the expenses associated with conventional brick-and-mortar enterprises.
The market for clothing rentals and subscriptions also provides designers with immediate access to consumer preferences. The online clothing rental subscription industry is also broadening its consumer base by needing specialty/niche markets. Some of them are employing novel strategies to get traction.
For instance, Gwynnie Bee in the US offers plus-size consumers rental clothes, in contrast to other online fashion rental businesses.
In the meanwhile, Union Station wants to do away with the hassle of purchasing bridesmaid dresses, which are frequently expensive and chosen based on the lady, not the wearer taste’s and style. The company allows women to pick out the dresses for their bridesmaids, which can then be returned after being dry-cleaned.
Therefore, online garment rental aims to reduce clients’ spending on new apparel for any special occasion or purpose.
The U.S. has emerged as a highly lucrative market, accounting for nearly 95% of the North America market, while the UK is projected to register 11.8% YoY growth in 2021, performing exceedingly well within the Europe market.
Germany and France will continue exhibiting high demand for online clothing rental, while within East Asia, the demand for China and South Korea is expected to be higher than Japan
COVID-19 causing disruptions in online clothing rental
Online garment rental was slated for sustainability before the COVID-19, but the pandemic has created substantial delays as occasions like weddings, social gatherings, and other festivities had to be postponed due to the implementation of lockdown in numerous countries around the world.
Rental demand fell, according to businesses like Rotaro, Rent the Runway, and others. Since the majority of online garment rental businesses depend on events, the pandemic period saw a significant impact on the industry when there were no events and few people going out.