Will the U.S. Retain its Dominance in North American Online Clothing Rental Market?
“Requirements of Self-Esteem to Aid the Growth of Online Clothing Rental Market in U.S.”
The U.S. holds a share of around 90.3% of the North American online clothing rental market and is likely to grow at a CAGR of ~7.4% during the forecast period. Growth in the U.S. online clothing rental market is driven by growing consumer inclinations towards using rental clothes on special occasions, rise in the number of new start-ups, and the presence of some of the leading brands dealing with rental clothing.
Consumers in the U.S. have high spending power and like to try new apparel frequently. People in the U.S. like to keep good looks for their self-esteem and to look pleasant. Therefore, good looks are increasingly becoming the focal point of attention and are resulting in demand for clothes on online clothing rental websites. Also, the better availability of the internet aids the growth of the online clothing rental market in the U.S.
The global online clothing rental market is estimated to be valued at ~US$ 2,007.3 Mn in 2022 and is projected to reach ~US$ 4,828.3 Million by 2032, with overall demand growing at a robust CAGR of ~9.2% from 2022 to 2032.
The rapid growth of the online retail industry and the rising adoption of rental clothes by people who cannot afford or do not want to spend money on new clothes to be worn on special occasions are some key factors driving growth in the global online clothing rental market.
Currently, the share of the online clothing rental market in its parent market (clothing rental market) is around ~12%-17%.
What are the Key Trends Driving the Global Online Clothing Rental Market?
“Rising Awareness About Environment Sustainability Fueling Market Growth”
Over the decade the fashion and clothing industry has shown immense growth due to changing lifestyles of people, increasing spending on clothing and other accessories, and high penetration of online shopping platforms. However, the industry is mainly associated with environmental and social problems such as poor production practices, waste generated from clothing production, and various other problems.
Eco-fashion and sustainable fashion concepts have evolved as remedies to the industry’s present environmental concerns, with government and pressure group support. Consumers nowadays are becoming more environmentally conscious and this is generating demand for online rental clothing.
The awareness of environmental sustainability is trending among known brands and various new business participants along with brands are stepping ahead by introducing their own online rental clothing websites. Thus, environmental and sustainability adaptive measures will continue to fuel the growth of the online clothing rental market.
“Cost-Effective Benefit of Rental Cloths Directing People Towards Online Clothing Rental Platforms”
The online clothing rental trend is driven by affordability, especially during the pandemic-inflicted economic crisis. Consumers have not only reduced their consumption of nonessential items but are buying more low-priced, disposable garments. With low-cost and higher-quality online clothing rentals, the concept and practice complement the vintage fashion phenomenon.
Various consumers discard clothing items every year that have only been worn the least times on average. The clothes can be refurbished and put on rent on online rental clothing websites. This benefits people as they get a chance to try new or expensive clothes at an economical cost and it also contributes to the environment with a reduction of wastage in the environment.
Market leaders are focusing on new product launches, partnerships, collaborations, mergers & acquisitions, and integrating novel technologies to increase their global presence and capture a high revenue share.
- In 2022, Tommy Hilfiger entered a rental partnership with Rotaro in the UK. The partnership will provide renters with the opportunity to wear a range of unisex pieces from the TommyXRomeo collection, alongside a selection of denim from Tommy Jeans and archive Hilfiger pieces.
- In 2022, a new clothing rental start-up started offering consumers access to the wardrobes of fashion industry creatives and influencers. The new platform founded by Rachel Cornick combines fashion rental with the power of social media.
These insights are based on a report on Online Clothing Rental Market by Future Market Insights.