Online Clothing Rental Market Analysis Report, By End Use, By Dress Code, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global online clothing rental market size was worth USD 1.12 billion, in 2018. The market is expected to grow with a CAGR of 9.4% throughout the forecast duration. The increasing trend of online retailing of clothing products is the key factor driving the growth of this market. Moreover, other factors such as rising e-commerce platforms, increasing internet penetration, and growing online shopping are further proliferating the growth of the market.

In addition, changing consumers’ fashion statements and increasing the popularity of fashion articles and vlogs will help promote the growth of the market. The film and television industry has witnessed phenomenal growth in the recent past. These industries require shooting attire for a short duration, and often they choose to rent instead of buying new ones. Thus, the growth of these industries is positively affecting the market for online clothing rental.

Fashion aficionados, owing to a lack of finance to buy new clothes, prefer online renting as it serves their purpose without much expenditure. Consumers often do not repeat the clothes already rented by them and go for new ones to stay stylish. Thus, the low cost incurred in renting and changing consumers’ preferences is fueling the market growth.

The rise in e-commerce platforms, particularly in Asia Pacific countries such as China and others is further strengthening the demand for such clothes. However, inadequate regulations, lack of awareness, and issues related to acceptance are slowing down the growth to some extent. In addition, issues associated with the size of clothes, which cannot be altered depending upon the individual requirements. This factor is expected to be a major restraint in market growth. To overcome this problem, companies are coming up with innovative strategies by making consumers interact with fashion experts before renting. Many companies also provide the same design in different sizes to cater to the consumers’ demand.

End-use Insights

Based on end-use, the online clothing rental market is classified into men, women, and kids. Among them, the women segment held the largest market share of over 58%, in 2018. This segment is expected to continue witnessing a significant growth rate over the next few years. Rapidly changing women’s fashion statements is the primary reason behind the growth of this segment.

The kid's segment, on the other hand, is expected to exhibit a considerable growth rate over the forecast period. Kids’ clothes require continuous up-gradation as they grow fast. Renting different clothes from time to time is a cost-effective method to cater to their fashion needs. In addition, parents prefer to rent different clothes for their kids depending on the occasion.

Dress Code Insights

Among different kinds of clothes, traditional clothes renting is expected to grow with a CAGR of 11.2%, during the forecast period. These clothes are worn during special occasions such as marriage and festivals. Thus, consumers tend to rent them instead of buying them.

The formal clothes segment held the largest share, in 2018 with around 48%. These clothes include suits and blazers, which are expensive and need constant maintenance. Thus, price-conscious consumers tend to rent them instead of purchasing them. On the other hand, casual wear is projected to hold a considerable market share over the forecast duration. Sportswear is popular among casual clothes as athletes who cannot afford them choose to rent them instead.

Regional Insights

North America occupied the largest share, in 2018 with a market share of over 40%. The United States contributed significantly to the growth of this region. The country is expected to exhibit a CAGR of 8.0%, during the forecast period. North America is followed by Europe with nearly 27% of the market share, in 2018. Western Europe dominated sales in this region. Europe’s growth is attributed to the increasing purchasing power in the region and rapidly changing fashion statements. 

The Asia Pacific is projected to grow with the highest growth rate owing to increasing demand from countries such as India and China. The increasing trend of western culture, rapid urbanization, and the rise in the millennial population is set to fuel the demand in this region. Further, consumers prefer to rent the clothes instead of buying them owing to a lack of budgets in this region.

COVID-19 Impact Insights

The online clothing rental market has been adversely affected owing to the outbreak of COVID-19. Renting clothes are mostly used in weddings, traveling and other special occasions. However, due to the pandemic, wedding and holidays plans have either been canceled or postponed, as a result, the market has witnessed a considerable drop in the demand for online clothing rental products. Hygiene has been one of the major concerns among consumers for not opting for rental clothes during the pandemic. Additionally, companies operating in the market, for example, Rent the Runway in the United States, have announced “lay-off” amid reduced demand. Thus, companies are cutting the cost across the boards to sustain themselves in the market.

However, the market has started to recover post lockdowns with Chinese company YCloset witnessing considerable growth following the relaxation in the lockdown norms. In addition, since renting the clothes provides some income to people and it eliminates the need to buy the new clothes, therefore, post-pandemic, the market is estimated to register considerable growth.

Online Clothing Rental Market Share Insights

The key players in the market are Rent the runway, Secoo Holding li Mited, Le Tote, Dress Hire, and Clothing Rental among others. The industry has a moderate to low entry barrier for new entrants. As online renting is yet to gather momentum in most of the emerging countries, new players can penetrate with innovative strategies. Existing leading players are relying on product innovations and omnichannel retailing to strengthen their position in the market.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global online clothing rental market report on the basis of end-use, dress code, and region:

• End-use Outlook (Revenue, USD Billion, 2015 - 2025)
    • Men
    • Women
    • Others

• Dress Code Outlook (Revenue, USD Billion, 2015 - 2025)
    • Formal
    • Casual
    • Traditional

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • France
        • U.K
    • The Asia Pacific
        • China
        • India
    • Central & South America
        • Argentina
    • Middle East & Africa
        • UAE