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The online clothing rental market size is forecast to increase by USD 971.79 million, at a CAGR of 6.41% between 2023 and 2028. The market's growth hinges on various factors including the burgeoning e-commerce fashion industry, increasing participation in social functions, and the rapid expansion of the fast-fashion sector. These elements collectively contribute to the market's upward trajectory, as they drive demand for a wide range of fashion products and accessories. With the convenience of online shopping, the appeal of social events, and the allure of trendy fashion offerings, consumers are increasingly inclined to invest in new clothing and accessories. This surge in demand fuels the growth of the market, making it a dynamic and evolving landscape.
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The Online Clothing Rental Market is thriving due to the growing popularity of online retail and shopping portals. Fashion vlogs and the influence of the film and television industry further drive demand. Garment manufacturers offer a variety of luxury designer dresses, catering to consumer fashion sense and trends. With the rise of formal dress codes and casual wear for various occasions like weddings, theme parties, and corporate events, the market sees an increasing demand for wedding dress products and men's wedding outfits. However, challenges include maintaining clothing style standards and addressing consumer concerns about online retail and fashion sense. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising participation of people in social functions is notably driving market growth. The festivals and traditions in various countries have deep-rooted political, historical, religious, and cultural significance, often necessitating specific clothing for celebrations. As the demand for special occasion wear surges during cultural and festive events, consumers seek cost-effective options due to the high prices of such attire. Consequently, online clothing rental services have gained traction, with garments manufacturers adapting to meet this demand. With the globalization of culture, Western occasions like galas, Valentine's Day, and bachelorette parties are becoming popular worldwide, each with its dress code requirements.
Further, international designer labels and men's Wearhouse company are among the key players capitalizing on this trend, offering rental options suitable for various occasions, including corporate parties. Weddings, birthdays, and spiritual gatherings also call for special attire, prompting consumers to opt for clothing activities and clothing rentals over purchases. This trend is propelled by the affordability and convenience offered by online rental platforms, which cater to various income levels through subscription services and personalized style recommendations. Overall, the increasing engagement in social gatherings and its importance in the film industry is poised to propel the market growth during the forecast period.
The rising popularity of experiential marketing is an emerging trend shaping market growth. The fashion industry boasts a diverse ecosystem comprising retailers, agents, distributors, wholesalers, and marketing agencies, all crucial in shaping consumer preferences for upcoming fashion seasons. Retailers, serving as the primary touchpoints for consumers, wield significant influence, prompting fashion brand owners to devise distinctive marketing strategies to stay ahead in the competitive landscape. Experiential marketing has emerged as a prominent strategy, engaging customers directly in various marketing initiatives. Online fashion platforms, offering both sales and rental services, leverage experiential marketing to attract consumers through live events, participation campaigns, and loyalty programs.
Moreover, many online clothes rental vendors facilitate convenient try-on experiences, such as Le Tote's subscription service, allowing customers to rent clothes and accessories monthly. Effective social media presence further enhances customer engagement, with vendors sharing product photos and updates. Consequently, the rising prominence of experiential marketing driving the market growth during the forecast period.
Additional fees to avail of online clothing rental services are a significant challenge hindering market growth. Consumers must agree to additional conditions, such as payment of laundry fees, insurance charges, and delivery charges. At times, customers must pay additional reservation charges for prior bookings of clothes that they wish to rent. In addition, consumers must pay additional charges, such as GST and other taxes, which are excluded from the rental fees. Cancellation fees are also levied on customers when they cancel their orders. In addition, the auto-debit subscription fee option might inconvenience consumers who are unsatisfied with the offerings. Moreover, consumers are increasingly becoming concerned about the full payment of the actual price of the rented clothing item in situations such as product damage or loss.
Further, consumers must pay huge amounts as compensation for damaged rental clothing or loss of rental clothing items. Sometimes, consumers fail to read or ignore the rental agreement while renting clothing and may end up paying more for the service. Thus, additional fees imposed on consumers affect their confidence in online apparel rental services. Although mandatory disclosures are mentioned in the rental agreement on online clothing rental platforms, a negative perception exists among consumers of additional fees in the rental bill, which may limit the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AARK World Pvt. Ltd. - The company offers online clothing rental services such as Indian outfits, including sarees, lehengas, sherwanis, and other ethnic wear for men and women.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The women segment is estimated to witness significant growth during the forecast period. The women segment is expected to have a significant share of the market. The growing demand for renting occasion wear by women is estimated to drive the market for women during the forecast period. Women are increasingly becoming conscious about their clothing purchases. Women select attires based on different occasions, such as a date, formal meeting, party, vacation, wedding, outdoor activity, and daily work. As occasion wear items are priced high, women increasingly prefer renting clothing to purchasing them.
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The women segment was the largest and was valued at USD 1.61 billion in 2018. In addition, companies are offering styling services to improve the customer value proposition. For instance, Rent the Front Row LLC. (Rent The Front Row), based in London, provides additional styling services to women. The company offers personalized shopping services for women, apart from sourcing luxury clothing from across the globe and offering wardrobe advice. Therefore, more women are expected to opt for online clothing rental services, specifically focusing on personalized services during the forecast period. Therefore, such factors are expected to propel the growth of the women segment in the market during the forecast period.
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North America is estimated to contribute 45% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Moreover, the e-commerce industry in the region is well established owing to the high Internet penetration. As of 2023, the percentage of individuals using the Internet in the US was around 92% of the total population in 2022. The United States is one of the biggest online markets worldwide. Vendors in the market in North America are implementing new strategies to counter the competition as the market is fragmented in this region. The US stands as the leading contributor to North America's market, driven by consumer demands for variety, sustainability, and affordability. This shift in ownership preferences has fueled opportunities for the resale market and rental services, with 103 Online Fashion Rental startups launching in the US on 11 August 2022. These startups offer various clothing types, including casual, designer, occasional, athletic, maternity wear, menswear, and kids wear, available for one-time or subscription-based rentals.
For instance, Rent It BAE, an online portal, offers premium fashion wear rentals, featuring dresses, bags, ethnic wear, sunglasses, and watches, with rental durations of four days. It offers rental plans tailored for specific occasions or unlimited monthly subscriptions, accessible through its Android and iOS apps. In Canada, the rise of minimalism and sustainable fashion has spurred interest in clothing rentals, with consumers increasingly opting for online platforms like Dressed, which offers monthly renewing collections. While Mexico's market is in its infancy, consumers procure occasion wear from US-based vendors, indicating growth potential for personalized services in regional market growth during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is experiencing significant growth, driven by the convenience and affordability offered by online shopping portals. Consumers can access a wide range of garments, from formal clothing items to premium jackets and suits, along with sports apparel for various occasions, including sporting events and wedding ceremonies. Fashion brands and high-end designer labels provide options for traditional renting or subscription-based services, catering to diverse preferences. Online rental services offer free trials at home, allowing customers to experiment with different clothing styles and keep up with the latest fashion trends sustainably. By reducing greenhouse gas emissions and textile waste, online clothing rental appeals to thrifty fashion lovers seeking expensive designer clothing without contributing to landfill. With the rise of sustainable clothing, the market continues to evolve, offering choices for every aesthetic appearance and occasion, whether for wedding parties, birthday celebrations, corporate events, or filmmaking occasions.
Additionally, the market is revolutionizing the fashion industry by offering convenient access to garments from high-end designer labels to local designer labels. Consumers can rent formal clothes, luxury brands, and expensive wedding collections for various occasions, including birthday parties and corporate events. With options for monthly and quarterly subscription services, individuals can change their wardrobe regularly without the commitment of purchasing expensive dresses. Online platforms provide access to partywear and Western wear, catering to different clothing style segments and ethnic preferences. As physical outlets and brick-and-mortar stores adapt to online rental services, boutiques offer a diverse range of garments for every aesthetic appearance and formal dress code segment, making online clothing rental a preferred choice for fashion-forward consumers.
Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.41% |
Market Growth 2024-2028 |
USD 971.79 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.79 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 45% |
Key countries |
US, Canada, South Korea, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AARK World Pvt. Ltd., Armoire Style Inc., Dress and Go SA, Front Row, Girl Meets Dress, Glam Corner Pty Ltd., Glamourental, My Secret Wardrobe, Rent An Attire, Rent the Runway Inc., Rentez Vous, Secoo Holding Ltd, Stylease Pvt. Ltd., TheDressBank, Urban Outfitters Inc., Wrapd, Your secret closet, and Gwynnie Bee |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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