The clothing, footwear, & accessories industry is anticipated to witness checkered growth throughout 2020, as a result of the unprecedented supply chain disruptions caused by the COVID-19 outbreak worldwide. The expected decline in the global sales of clothing, footwear, & accessories is attributable to massive supply chain disruptions across significant export markets, including China and India. However, the industry is likely to recover over the forecast timeframe, given the rising popularity of online/e-commerce sales. From a manufacturing standpoint, the sustainable or ethical fashion trend is expected to favor market growth throughout the forecast timeframe. Luxury apparel is another lucrative space for prospective manufacturers to target, given the mushrooming number of affluent and fashion-conscious consumers across the globe.
The global online clothing rental market size is expected to reach USD 2.09 billion by 2025 and is anticipated to register a CAGR of 9.4% during the forecasted period, according to a new report by Grand View Research, Inc. Changing fashion trends and rising penetration of internet are among the key factors driving the growth.
Women segment leads the market and is expected to expand at a CAGR of more than 9.8% over the forecast period. The trend of not using the same clothes for a long time and creating unique personal style or fashion statement are among the prominent factors driving the grow. Apart from women, the kids segment is also anticipated to witness significant growth in the upcoming years. Rising preference for renting children’s clothes, is expected to positively impact the overall growth.
Renting traditional clothes is found to be the fastest growing segment on the basis of dress code. Younger consumers prefer renting traditional clothes as these cloths are used only on rare occasions. Apart from traditional clothes, the formal segment is also witnessing a significant growth. It is hard to purchase and maintain a variety of formal clothes for the young as well as price-conscious consumers, thus, they prefer renting the clothes.
North America is the leading market for the industry and accounts for nearly 40% of the market share. Europe is the second largest market for online clothing rental. Europe is known for its fashion trends, hence, young consumers want to keep themselves updated with the latest fashion. Thus, they prefer renting instead of buying impacting the overall growth.
Asia Pacific is found to be the fastest growing region due to developing nations such as India and china which accounts for more than 34% of the global population. The increasing awareness about the service, and internet penetration are among the prominent factors for the growth of the industry in the region.
Further key finding from the report suggests:
- In terms of revenue, the women segment is projected to ascend at a CAGR of 9.8% over the forecast years
- Traditional renting is expected to expand at a CAGR of more than 11.2% during the forecast period
- North America leads with market share of more than 40% and is projected to expand at a significant CAGR in near future
- Some of the key players operating in the online clothing rental market are The Clothing Rental, Flyrobe.com, Rent the Runway, Secoo Holding Limited, Share Wardrobe, Le Tote, Swapdom, Gwynnie Bee, Dress Hire, and StyleLend.
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