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

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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.

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