The global online clothing rental market is expected to grow with a CAGR of 9.4% over the forecast period to reach USD 2.09 billion by 2025, according to a new report released by Million Insights. Changing fashion trend coupled with increasing e-commerce platforms are primarily driving the growth.
The women segment is projected to grow with the fastest growth rate of 9.8% over the forecast period. Reluctant to use the same clothes for a longer period amid changing fashion dynamics is the key driver of this segment. On the other hand, the kids' segment is likely to exhibit significant CAGR over the forecast period. Kids tend to grow faster, which makes their existing clothes unfit. Owing to this region, parents tend to rent special clothes than buying.
Traditional clothes renting is the fastest-growing segment among different dress codes. The growing popularity of traditional attire among millennials is supplementing the growth of this segment. Such clothes are worn during festivals and marriage. Owing to their special use, price-conscious consumers tend to rent instead of buying. On the other hand, formal clothes are also experiencing a significant growth rate. Formal clothes such as blazers, suits and others are quite expensive and require frequent maintenance.
North America was the largest market with over 40% of market share in 2018. The region was followed by Europe. Fashion trends among millennials are quite popular in Europe. Millennials, owing to budget constraints, prefer to rent the clothes instead of spending hefty money in purchasing. This, in turn, is fueling the demand in Europe.
The Asia Pacific is likely to be the fastest-growing region largely because of increasing demand from emerging countries such as China and India. Both these nations contribute to 34% of the world’s population with a significant number of millennials among them. Further, Asia Pacific is witnessing a rapid rise in e-commerce platforms coupled with internet penetration.
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Further key findings from the report suggest:
• Among different end-users, women segment is expected to grow with the fastest CAGR of 9.8% during the forecast period.
• Traditional renting is projected to grow with the healthy CAGR of 11.2% over the forecast years.
• North America alone held the 40% of the market share in 2018 and the region is expected to continue its dominance over the forecast period.
• Key player in the online clothing rental market are Secoo Holding Limited, StyleLend, Le Tote, Secoo Holding Limited, Flyrobe.com and Share Wardrobe.
Million Insights has segmented the global online clothing rental market on the basis of end use, dress code, and region:
Online Clothing Rental End Use Outlook (Revenue, USD Billion, 2015 - 2025)
Online Clothing Rental Dress Code Outlook (Revenue, USD Billion, 2015 - 2025)
Online Clothing Rental Regional Outlook (Revenue, USD Billion, 2015 - 2025)
• North America
• Asia Pacific
• Central & South America
• Middle East & Africa