Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Online clothing rental is a service that enables customers to rent clothes for a specific period of time. This service is beneficial for consumers looking for a designer dress for occasions such as theme parties, wedding parties, and corporate parties, and filmmaking. Moreover, this service is also suitable for individuals going through temporary changes in their physique.
The global online clothing rental market is projected to reach around US$ 2,143.8 million by the end of 2027, in terms of revenue, growing at CAGR of 10.2% during the forecast period (2020-2027).
Increasing spending on fashion activities by consumers due to growing disposable income is a prime factor fueling the market growth of online clothing rental. Growing demand for designer dresses that are expensive coupled with the ongoing changes in the fashion sense among consumers is also expected to augment the market growth of online clothing rental. Moreover, an increasing number of fast fashions brands is another major factors propelling the market growth of online clothing rental.
Figure 1. Global Online Clothing Rental Market Share (%) in terms of Value, By Region, in 2019
North America region dominated the global online clothing rental market in 2019, accounting for 42.1% share in terms of value, followed by Asia Pacific and Europe, respectively.
The market is highly fragmented due to presence of various unorganized manufacturer that offers inexpensive and non-branded products. This factor is expected to hinder the market growth of online clothing rental.
Online Clothing Rental Market Report Coverage
||Market Size in 2019:
||US$ 993.8 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 2,143.8 Mn
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
- Middle East: GCC, Israel, and Rest of Middle East
- Africa: South Africa, North Africa, and Africa
- By Demography: Women, men, and kids
- By Business Model: Peer-to-Peer Model, Standalone Model, and Hybrid Model
- By Price Range: Premium, Mid, and Low
- By End-user: B2C (Business to Customer) and B2B (Business to Business)
- By Type: Western Wear, Ethnic Wear, and Others
Rent the Runway, Poshmark, Elanic Services Private Limited, Dress & Go , GlamCorner Pvt Ltd., Envoged, Etashee, Secoo Holdings Limited, and Secret Wardrobe
- Increasing spending on fashion activities by consumers due to growing disposable income
- Rise in apparel & fashion industry across the Asia Pacific region is augmenting the market
|Restraints & Challenges:
- Lack of awareness regarding the benefits of online rental products among the consumer
The increasing focus of manufacturers on kids segments is expected to offer lucrative market opportunities in the near future. Children are becoming more brand- and style-conscious due to changing lifestyle of parents which is also expected to augment the market growth of the online clothing rental. Thus growing kids wear market is expected to foster the market growth of the online clothing rental over the forecast period.
Growing women online luxury fashion is projected to serve major growth opportunities for the market of online clothing rental. An increasing number of working women is driving demand for online luxury apparels as this working woman highly prefers online shopping for buying apparel due to a hectic lifestyle. This is creating vast opportunities for online rental players in the near future.
Figure 2. Global Online Clothing Rental Market– Opportunity Analysis
Men's clothing and apparels are gaining traction in the market and this is attributed to the growing number of metrosexual males. Shifting inclination of men towards branded products coupled with the increasing focus of online portals players towards men's rental apparel is again anticipated to fuel the market growth of the online clothing rental.
Growing fashion trends among youngsters coupled with the increasing renting formal clothes such as expensive blazers and suits among price-conscious consumers are expected to spur the market growth. Moreover, the growing demand for sportswear due to increasing number of individuals participating in sports coupled with the rising number of sports activities is also expected to foster the market growth of the online clothing rentals.
Figure 3. Global Online Clothing Rental Market Share (%) in terms of Value, By Demography, in 2019
On the basis of demography in 2019, the women segment has accounted the largest market share of 62.3% in terms of value, followed by men and kids segment respectively.
Global Online Clothing Rental Market - Impact of Coronavirus (Covid-19) Pandemic
Before pandemic, people used to take clothes on rent for special occasions such as parties, weddings, or holidays. Instead of purchasing new dress for wedding or holiday, they used to burrow it. But due to coronavirus pandemic, all this has changed as weddings have been put on hold and holidays looks like a distant dream. Rent the Runway has announced lay-offs, temporary pay cuts and furloughed staff in response to pandemic. The demand for rental clothes has dropped drastically as people not having events to go. The hygiene factor will also impact growth of online clothing rental market as customers will hesitate to share clothes with others during the pandemic. According to Coherent Market Insights, online clothing rental market is expected to grow at a lower CAGR between 2020 and 2021.
- Rent the Runway
- Elanic Services Private Limited
- Dress & Go
- GlamCorner Pvt Ltd.
- Secoo Holdings Limited
- Secret Wardrobe