Online Clothing Rental Market Size
| Study Period | 2016 -2027 |
| Market Size (2023) | USD 1.66 Billion |
| Market Size (2028) | USD 2.31 Billion |
| CAGR (2023 - 2028) | 6.79 % |
| Fastest Growing Market | North America |
| Largest Market | Europe |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Online Clothing Rental Market Analysis
The Online Clothing Rental Market size is expected to grow from USD 1.66 billion in 2023 to USD 2.31 billion by 2028, at a CAGR of 6.79% during the forecast period (2023-2028).
Consumers are increasingly spending on clothing activities due to their increasing disposable incomes, which is a significant factor fueling the growth of the online clothing rental market. The growing demand for costly designer dresses, in conjunction with the changing fashion sense among consumers, is also expected to fuel the growth of the online clothing rental market in the coming years. Additionally, an increasing number of fast fashion brands is another major factor contributing to the development of the online clothing rental market. Additionally, many clothing rental companies have started using subscription-based services online. These services have helped to reach a broader range of customer base, thus stabilizing their market, and are likely to have a positive impact during the forecast period.
The global online clothing market is characterized by the women segment owning a prominent share in factors such as frequent presence across social and corporate events, follow up's with global designer labels, and active engagement on social media platforms that offer discounts and promotions. The market is likely to witness significant growth in the rental of formal dress code segment as consumers are more prone to purchase casual wear in volume while keeping a pair or two of formals in the wardrobe.
The market concentration is low, and players are expected to offer products that encompass local designer labels who develop products that are unique in each way.
Online Clothing Rental Market Trends
This section covers the major market trends shaping the Online Clothing Rental Market according to our research experts:
Adoption of Subscription Services is Driving the Market
Online clothing rental marketing is witnessing significant changes post-pandemic. It has shifted its focus towards the adoption of subscription-based services. Through this subscription, the customers can buy three to four pieces of clothing simultaneously for an unlimited period for rent in exchange for monthly fees. Monthly/quarterly subscription services are a growing trend in the online clothing rental industry, where retailers provide subscribers with rented clothing on a monthly/quarterly basis online. These services are helping companies to reach a wide range of customer bases and save time in acquiring new customers and generating recurring revenue.
Rent the Runway is the most popular and is one of the oldest companies in this business; known for formal wear for a long time. Presently, the company offers a wide range of apparel for any occasion. Other firms providing subscription packages include Gwynnie Bee, New York & Company Closet, Tuileries, Nova Octo, Nuuly, Armoire, Vince Unfold, and Vivrelle. New companies are entering the market due to rising demand for these services. For instance, in November 2022, to celebrate the launch of its new clothing rental subscription service in the United States, Fashion Forward Box gave away a free membership for a limited time.
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North America Growing at Robust Pace
The North American region is fast emerging as a growing market for online clothing rentals. In the region, millennials are increasingly renting out items against owning them. In the United States, clothing rentals fall behind rentals for other categories such as cars, furniture, and electronics, but the trend of online clothing rentals is fast catching up. In a study published in Sustainability in August 2021, a study conducted in the United States showed that GenZ adults are increasingly inclined towards renting rather than owning clothes - which can be attributed to the fact that they focus on usage rather than ownership as part of their consumption habits. Companies and retailers are also responding to the challenge and the opportunity that online clothing rentals pose. For instance, CaaStle operates rental services for its own Gwynnie Bee brand as well as for third-party retailers, including Express, American Eagle Outfitters Inc., and Ascena Retail Group Inc.'s Ann Taylor. It charges a flat fee per active subscriber to provide all aspects of the offer, from logistics to laundry.
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Online Clothing Rental Industry Overview
The online clothing rental market is moderately fragmented, with the competitive landscape fragmented with a combination of established retailers and start-ups. While selected retailers are looking for a better way of managing their inventory through rentals, start-ups are looking for business expansion by offering multi-brand product mixes. Some key players active in the market are Le Tote, Gwynnie Bee, Glam Corner, Rent the Runway, and Nuuly, among others.
Online Clothing Rental Market Leaders
Le Tote
Rent the Runway
Nuuly
Glam Corner
Gwynnie Bee
*Disclaimer: Major Players sorted in no particular order
Online Clothing Rental Market News
- In July 2022, Rent the Runway partnered with Saks Off 5th to offer customers pre-owned designer items on its website, which now features a "pre-owned" section.
- In April 2022, through the launch of Reloop, David Jones expanded its partnership with the fashion rental platform GlamCorner. With Reloop, which GlamCorner developed, customers can participate in the circular economy whenever they choose to shop consciously.
- In May 2022, The clothing subscription service Nuuly recently launched its latest ready-to-rent collection following collaborations with designers like Anna Sui and the launch of its resale platform last year.
Online Clothing Rental Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 End User
5.1.1 Men
5.1.2 Women
5.1.3 Children
5.2 Dress Code
5.2.1 Formal
5.2.2 Casual
5.2.3 Partywear
5.2.4 Traditional
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Russia
5.3.2.5 Spain
5.3.2.6 Italy
5.3.2.7 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Le Tote
6.3.2 Gwynnie Bee
6.3.3 Glam Corner
6.3.4 Run the Runway
6.3.5 Nuuly
6.3.6 La Reina
6.3.7 American Eagle
6.3.8 Hire Street
6.3.9 Walkin Closet
6.3.10 Swishlist Couture LLP
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Online Clothing Rental Industry Segmentation
Online clothing rental is a service that enables customers to rent clothes for a specific period. This service benefits consumers looking for a designer dress for theme parties, wedding parties, corporate parties, and filmmaking occasions. The online clothing rental market is segmented by end users (men, women, and children), dress code (formal, casual, partywear, and traditional), and geography ( North America, Europe, Asia-Pacific, South America, Middle-East, and Africa). For each segment, the market sizing and forecasts have been done based on value (in USD million).
| End User | |
| Men | |
| Women | |
| Children |
| Dress Code | |
| Formal | |
| Casual | |
| Partywear | |
| Traditional |
| Geography | |||||||||
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Online Clothing Rental Market Research FAQs
How big is the Online Clothing Rental Market?
The Online Clothing Rental Market size is expected to reach USD 1,663.04 million in 2023 and grow at a CAGR of 6.79% to reach USD 2,309.70 million by 2028.
What is the current Online Clothing Rental Market size?
In 2023, the Online Clothing Rental Market size is expected to reach USD 1,663.04 million.
Who are the key players in Online Clothing Rental Market?
Le Tote, Rent the Runway, Nuuly, Glam Corner and Gwynnie Bee are the major companies operating in the Online Clothing Rental Market.
Which is the fastest growing region in Online Clothing Rental Market?
North America is estimated to grow at the highest CAGR over the forecast period (2023-2027).
Which region has the biggest share in Online Clothing Rental Market?
In 2023, the Europe accounts for the largest market share in the Online Clothing Rental Market.
Online Clothing Rental Industry Report
Statistics for the 2023 Online Clothing Rental market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Online Clothing Rental analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Online Clothing Rental Market Report Snapshots
