Online Clothing Rental Market Size, Share & Trends Analysis Report, By End Use (Men, Women), By Dress Code (Formal, Casual, Traditional), By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global online clothing rental market size to be valued at USD 2.09 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 9.4% during the forecast period. Increasing online retail is the primary driving factor for this growth. Moreover, technological advancements, internet penetration, increasing popularity of online shopping portals over the last few years are driving the market. Furthermore, the rise in popularity of fashion vlogs, film industry, and the television industry is expected to fuel market growth. These industries require clothes for a short duration and thus, they prefer renting them instead of buying. Hence, this growth is expected to impact the demand for online clothing rental in the forthcoming years.

Fashion-conscious individuals who lack finances to purchase clothes of their choice are anticipated to make use of the available resources to the fullest. Renting a product is always cost-efficient, and more so in this industry where the trends keep changing and consumers do not prefer repeating clothes. As a result, consumers prefer renting clothes to stay trendy.

Increasing e-commerce, especially in Asia Pacific is expected to propel the market in the near future. However, factors such as improper regulations, low consumer awareness, and less societal acceptance are projected to hinder the growth of the market to an extent. The main restrain is the difference in the size of the cloths. Rented clothes cannot be altered based on the size of the individuals. Thus, to overcome these restraints, the companies are coming up with innovative methods such as live chats with fashion experts. Some companies also offer the same product in two sizes so that consumers can opt for the most fitting product.

Online Clothing Rental Market Trends

The soaring demand for luxury designer dresses, as well as continuous shifts in consumer fashion sense, are predicted to fuel the rise of the online garment rental sector. In addition, consumers’ increased spending on fashionable pursuits as their disposable income rises, coupled with the rapid growth in the number of fashion brands, is a major element driving the market.

The evolving style statement among young people, as well as an increase in the renting of formal clothing items such as premium jackets and suits among price-conscious individuals, are predicted to drive market expansion. Furthermore, the escalating desire for sports apparel owing to an increase in the number of people playing sports, combined with an increase in the number of sporting events, is predicted to fuel the expansion of the market.

Manufacturers' increased attention to children's segments is predicted to provide profitable market opportunities in the coming years. Kids have become more style- and brand-conscious as a result of their parents' changing lifestyles, which is predicted to boost the growth of the online clothing rental space. However, the industry is significantly fragmented given the presence of several unorganized manufacturers selling low-cost, non-branded goods, which can act as a restraint and hamper the market growth.

End-Use Insights

Based on end-use, the market is segmented into men, women, and kids. The women segment accounted for the leading market share of more than 58.0% in 2018 and is expected to witness significant growth in the near future. Constantly changing fashion trends are anticipated to propel segment growth.

On the other hand, the kids segment is expected to register a significant CAGR during the forecast period. The kids grow fast and hence their clothes require constant replacement, thus, the parents prefer renting the clothes. This is anticipated to increase the subscription of rental companies, positively impacting market growth.

Dress Code Insights

Traditional renting is projected to register a CAGR of more than 11.2% over the forecast period. Traditional clothes are worn during festivals and rare and special occasions thus, are used very less. Hence, consumers prefer renting them instead of purchasing them.

Formal clothes are anticipated to hold the largest market share of around 48.0% in 2018. Formal clothes such as suits and blazers are expensive and require maintenance, thus the price-conscious and young consumers find renting as a better option. The casual wear segment is anticipated to hold significant market share during the forecast period. It includes sportswear, for instance the players who are not able to get sports apparels can rent through online portals.

Regional Insights

In 2018, North America led with market share of around 40% and is anticipated to witness a significant CAGR in near future. In North America, the U.S. contributes to the majority of share and is expected to register a CAGR of more than 8.0% over the forecast period. Europe is the second-largest segment with a market share of around 27% in 2018. Western Europe is the dominant segment in Europe, due to the high purchasing power and fashion-conscious consumers in countries, such as France, Italy, and the U.K.

Asia Pacific is the fastest-growing segment, due to high demand from the developing countries such as India and China. Growing consumer awareness and internet penetration are among the prominent growth drivers for the region. India and china account for more than 34% of the global population, thus, rising consumer awareness in these countries is projected to impact overall growth. In these developing nations, consumers are finding a better way of accessing the clothes of their choice instead of having to buy them thus, clothing rental is a suitable solution for them.

Increasing purchasing power and changing fashion trends due to rising adoption of western trends in developing nations is also a factors driving the growth in Asia Pacific. Various government initiatives, such as Startup India by the government of India, encourage entrepreneurs to come up with innovative ideas. In India, the idea of online clothing rental came into existence in 2012. These startups offer rental services at a very low cost to enhance customer experience. Many manufacturers offer high-end designer clothes with added benefits such as free trials at home.

Key Companies & Market Share Insights

The Clothing Rental, Rent the runway, Flyrobe.com, Share Wardrobe, Secoo Holding li Mited, Gwynnie Bee, Le Tote, Swapdom, StyleLend, and Dress Hire are some of the key market players. The market poses a moderate to low entry barrier as this industry is new. Hence, to expand the business further, many new companies are joining the market. The overall market is driven by product innovation and introduction of advanced features to enhance consumer experience.

Online Clothing Rental Market Report Scope

Global Online Clothing Rental Market Segmentation

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, Grand View Research 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

    • The U.S.

    • Mexico

  • Europe

    • France

    • The U.K.

  • Asia Pacific

    • China

    • India

  • CSA

    • Argentina

  • MEA

    • UAE