Market for Rented Apparel on Rise Globally Retailers Anticipate Good Sales from MOTHER’S DAY
DOES THIS INDICATE A NEW ERA OF GROWTH? The global online clothing rental market is anticipated to be valued at USD 1.9 billion by the end of 2023, witnessing a promising compound annual growth rate of 10% over the forecast period i.e., 2015-2023
Online clothing rental is a service wherein one can rent apparel items on a predefined period. The service is gaining popularity among youngsters as this is the only way they can afford to buy high-end designer wear trendy clothes for events such as weddings, theme parties, photo-shoots and film making.
According to a new report published by Allied Market Research, titled, “Online Clothing Rental Market: Global Opportunity Analysis and Industry Forecast 2017-2023,” the global market was valued at $1,013 million in 2017, and is estimated to reach $ 1,856 million by 2023, registering a CAGR of 10.6% from 2017 to 2023. In 2017, the number of women online clothing rental and ethnic wear segments dominated the global market share. Men’s end user segment and western clothing style segments are also anticipated to grow at a robust rate in terms of market share.
North America is the market leader and accounted for 40 percent share of the global market in 2017, followed by Europe. In addition, Asia-pacific is estimated to grow at the highest CAGR, projected to be 11.4 percent during the forecast period. The market is increasing in developing economies of Asia-pacific mainly because of the need of an economical alternative to direct purchasing each time, gradual increase in social acceptance of rental clothing and overall increase in sales in the online clothing industry.
There are many other factors that have led to sudden increase in demand for rental clothing. Fashion- conscious consumers with weak financial conditions often enjoy the benefit of online clothing rental services. These services are also beneficial for consumers who are undergoing temporary physique change such as pregnant women; these services provide cost-effective solutions to such consumers.
Moreover, rising emphasis on sharing rather than owning and about the positive environmental impacts of the ‘sharing’ economy are propelling the growth of the global online clothing rental market. Increasing internet penetration in developing countries with a promising demographic breakdown, such as India, China, Brazil, and others is expected to fuel market growth over the forecast period.