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Online Clothing Rental Market Is Estimated To Witness High Growth Owing To Opportunity In Gen Z And Millennials

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Poonam
Online Clothing Rental Market Is Estimated To Witness High Growth Owing To Opportunity In Gen Z And Millennials

The online clothing rental market allows customers to rent various types of clothing items such as dresses, tops, bottoms, suits, accessories and others for a fixed time period instead of buying them. Renting clothing helps consumers stay updated with the latest fashion trends at affordable prices and reduces fabric waste. With the abundance of options available on rental platforms, customers get access to designer wears from leading brands for special occasions, seasonal changes or everyday purpose without burning a hole in their pocket. The global online clothing rental market is estimated to be valued at US$ 8388.65 Mn in 2023 and is expected to exhibit a CAGR of 12.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The opportunity in Gen Z and millennials is expected to fuel the growth of the online clothing rental market over the forecast period. Younger consumers are increasingly adopting the shared fashion economy concept owing to financial and environmental benefits. Gen Z and millennials seek trendy yet affordable clothing options and prefer experiences over ownership of physical goods. These demographics are important customers for online rental platforms as they make a substantial contribution to the apparel industry's revenues. Companies operating in this market can capitalize on this opportunity by expanding their inventory with latest trends and designs that cater to the fashion preferences of Gen Z and millennials. They can also offer collaborative deals and reward programs to boost customer retention within this demographic. This will help drive the revenues of online clothing rental market players.

Porter's Analysis

Threat of new entrants: The online clothing rental market already has dominant players capturing significant market share, posing high entry barriers for new companies.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute rental options. However, key players offer differentiated services attracting loyal customer base.

Bargaining power of suppliers: Suppliers have low bargaining power due to the presence of multiple raw material suppliers and brands for clothing manufacturers to choose from.

Threat of new substitutes: New innovative subscription models for fashion rentals can emerge as substitutes.

Competitive rivalry: Intense competition exists amongst key rental players like Rent the Runway, Le Tote etc. to attract and retain maximum subscribers.

SWOT Analysis

Strength: Ability to provide sustainable fashion options and satisfy changing consumer trends. Wide variety of designer brands and clothing pieces available for different occasions.

Weakness: Higher costs for laundering and maintaining condition of rented clothing pieces. Dependence on consumer sentiments and economic cycles.

Opportunity: Untapped growth potential in developing regions. Expanding product assortment into accessories, kids wear and home decor items.

Threats: Strict regulatory compliance and return/quality policies add operating complexities. Susceptibility to fashion trends shifts.

Key Takeaways

The Online Clothing Rental Market Growth  is expected to witness high growth. Driven by the emerging popularity of shared fashion consumption models and sustainable clothing options.

Regional analysis: Asia Pacific presents lucrative opportunities for market expansion in the coming years. Countries like India and China exhibit increasing inclination towards western fashion trends and renting luxury brands. With rising millennial population and urbanization, the APAC online clothing rental market is projected grow at over 15% annually during the forecast period.

Key players operating in the online clothing rental market are Rent the Runway, Le Tote, gigCplicity, share wardrobe, and Secoo Holding Limited. Rent the Runway is the pioneer in this space enjoying leading market share with focus on premium designer brands. Le Tote offers affordable monthly subscription services while Secoo has captured Asian markets.

For more insights, read- https://www.newsstatix.com/online-clothing-rental-market-trends-size-and-share-analysis/

For more details on the report, Read- https://dailynewsmotion.weebly.com/report-blog/luxury-travel-market-is-estimated-to-witness-high-growth-owing-to-increased-adventurism

 


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