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The online clothing rental market size is estimated to grow at a CAGR of 9.86% between 2022 and 2027. The market size is forecast to increase by USD 1,564.94 million. The growth of the market depends on several factors, including the growing e-commerce fashion industry, the rising participation of people in social occasions, and the growing fast fashion industry.
This online clothing rental market report extensively covers market segmentation by end-user (women, men, and children), type (formal, casual, and traditional), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing e-commerce fashion industry is notably driving the market growth, although factors such as weak inventory management system may impede the market growth. Our researchers analyzed the data with 2022 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 growing e-commerce fashion industry is one of the key drivers supporting the online clothing rental market growth. The increasing clothing requirements of consumers are fulfilled through online rental services. Consumers prefer renting apparel through online platforms like Nuuly, Kangol, Flyrobe, rent the runway, etc because of the availability of a wide product portfolio and the convenience offered by online services. The growth in the market is primarily due to expanding e-commerce in the fashion industry in emerging economies, increasing online access and smartphone penetration, emerging worldwide middle classes with disposable income, and the rising trend of influencer culture.
Players in the online clothing rental market are fulfilling the increasing clothing requirements of consumers through the provision of online rental services. Consumers prefer renting apparel through online platforms due to the availability of a wide product portfolio and the shopping convenience offered by online clothing rental players. Thus, the global online clothing rental market is expected to grow during the forecast period, with a large number of existing e-commerce players as well as startups expanding their operations by heavily investing in the online clothing rental business. Such factors will increase the market growth during the forecast period.
The rising popularity of experiential marketing is one of the key online clothing rental market trends that is contributing to the market growth. Experiential marketing tries to market a product or a service through the direct participation of customers with various marketing efforts. In the online clothing rental market, vendors have adopted experiential marketing by making consumers participate in various marketing activities. Online fashion platforms involved in both sales and rental businesses are attracting more consumers through experiential marketing efforts.
Consumers are influenced to participate in various campaigns such as live marketing, participation marketing, loyalty marketing, and event marketing. Moreover, millennials are the most important target group for experiential marketing efforts. These factors will propel the online clothing rental market growth during the forecast period.
Inventory management challenges are one of the factors hindering the online clothing rental market growth. Vendors face stock-outs when there is a high demand for a particular type of clothing, and enough supply is not readily available to them. In addition, a high-speed reverse logistics system is needed to complete product returns, and the returns need to be closely inspected in terms of damages so that the respective customer is held responsible for the damages.
Thus, vendors must maintain a separate track of SKUs for clothing under different stages, such as new items, older items, damaged items, and return items for laundry services. Furthermore, vendors must check for timely replacements of older clothing items with new items. Thus, a weak inventory management system might affect the overall business of vendors operating in the global online clothing rental market.
The market 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 growth strategies.
Global Online Clothing Rental Market Customer Landscape
Vendors 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.
Armoire Style Inc.: The company offers a subscription-based online clothing rental service for women's clothing, including dresses, tops, bottoms, outerwear, and accessories. Also, the company offers online clothing rental services to women.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the women segment will be significant during the forecast period. A growing number of retailers of branded clothes has pointed out that there has been a rise in the number of women wearing and returning sold items. Growing demand for women online luxury fashion is projected to serve major growth opportunities for this segment.
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The women segment was valued at USD 1,742.81 million in 2017 and continued to grow until 2021. The growing demand for renting occasion wear by women is estimated to drive the online clothing rental 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. In addition, the dumping of unwanted clothing into landfills has a serious environmental impact.
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North America is estimated to contribute 46% 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. North America is an established market for online clothing rental services. 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 92% of the total population in 2022. The United States is one of the biggest online markets worldwide. Vendors in the online clothing rental market in North America are implementing new strategies to counter the competition as the market is fragmented in this region.
The outbreak of COVID-19 in 2020 disrupted the economy in the North American region. However, measures taken by governments to control the disease, such as social distancing, use of masks in public places, etc., and ongoing vaccination drives will stabilize the growth of the market. After the relaxation of stringent lockdowns, the resumption of weddings and other significant events led to an increase in demand for online renting of premium clothing. Users can select and rent designer dresses, gowns, lehengas, bridal dresses, sarees, jumpsuits, kurta and palazzo sets, and more. The vendor offers apparel based on multiple occasions like weddings, farewells, receptions, cocktails and nights out, and more. These factors are expected to recover and stabilize the growth of the online clothing rental market in the region during the forecast period.
The online clothing rental market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global online clothing rental market as a part of the global apparel, accessories, and luxury goods market within the textiles, apparel, and luxury goods market. The global apparel, accessories, and luxury goods market covers products and companies engaged in the manufacturing of apparel, accessories, and luxury goods. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Online Clothing Rental Market Scope |
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Report Coverage |
Details |
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Page number |
159 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.86% |
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Market growth 2023-2027 |
USD 1,564.94 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
9.72 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 46% |
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Key countries |
US, South Korea, UK, Germany, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AARK World Pvt. Ltd., Armoire Style Inc., Dress and Go SA, Front Row, Girl Meets Dress, Glam Corner Pty Ltd., Glamourental, Gwynnie Bee, La Reina Gown, My Secret Wardrobe, Rent An Attire, Rent the Runway Inc., Rentez Vous, Rotaro, Style Lend Inc., Stylease Pvt. Ltd., TheDressBank, Urban Outfitters Inc., Wrapd, and Your secret closet |
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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 forecast period. |
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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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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