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Fashion Rental Services and Their Effect on the Industry
Rental clothes and accessories have become more and more popular in the past few years. Millennials in particular are big supporters of this trend. In fact, millennials are three times more likely than non-millennials to use clothing rental services. There are many reasons for this behavior.
First, college debt and the financial crisis make designer clothes unaffordable for young people. That’s where the clothing rental trend started. Instead of buying a trench coat, why not rent it for a month or two? How about a dress for a wedding or important event? Also available for rent!
The practicality behind this reason slowly developed into a trend. Millennials believe that renting and buying a resale home is sustainable and economical. Issues such as reducing landfill waste are decreasing. Many renters also shop at second-hand stores. Buying used clothes makes it easier to resell them instead of throwing them away when you no longer like them. Transactions keep happening.
There are two different types of renters. Those who happen to have an event but don’t have the right clothes, or those who are taking advantage of the rental trend. Many renters use rental services multiple times a month to get dressed for work or events. Most of the time the events are in the same circle and if someone is wearing the same clothes every time it will be noticed. Dressing up for a work meeting is another reason to rent rather than buy. Both women and men want to present themselves and their company in the best possible light. Wearing a well-fitting suit or dress can help.
It’s no longer a truism to wear a gown or evening gown that you rent rather than own to a prestigious and lavish event. A hectic social life combined with the onslaught of social media makes it almost unforgivable and unacceptable to re-dress or bag. So, in this case, it doesn’t make sense to invest thousands of dollars in clothes that you’ll only wear once. Unless you’re a blogger who’s getting new clothes as a gift at every event, renting is the way to go.
The allure of “no ownership” now goes beyond homes and cars. Fashion and accessories are now the two largest emerging rental industries. This makes perfect sense for someone who can’t afford luxury brands but often relies on being well-dressed. A new generation craves multiple experiences, is trendy and trendy, without the pressure of perpetual ownership.
Brett Northart, president of Le Tote, said the clothing rental business has grown because consumers want flexibility in their wardrobes. Plus, the recession has made people less eager to own things, he said.
Even though we see many benefits for consumers, it also has a downside. In the past, small retailers and even larger retailers have had to contend with the rental business. Now they need to adjust to the competition. Many retailers have started opening rental and wear outlets for their businesses. About five years ago, a new industry based on sharing or renting clothing, electronics and small appliances sprung up, disrupting traditional retailers.
Advantages and disadvantages for interested parties:
Retailers: “Apparel will struggle to stay a priority spending,” Marshal Cohen, chief industry analyst at The NPD Group, told Retail Dive. “It’s vying for its share of wallet as younger consumers seek and consume services and experiences more than ever before.”
Retailers have to get their act together and get on the train of renting clothes to customers. If your brand is not innovative or a popular Instagram/social media brand, sales will drop quickly. Due to this shift in customer behavior, many large companies have had to downsize their clothing stores.
Consumer: This emerging industry based on sharing or renting clothing, electronics and small appliances is threatening retailers. But what about consumers?
Student loan debt and the Great Recession have all but forced young people in our society to find a different way to wear quality clothes. Sharing becomes a great alternative to owning. These actions have spawned businesses such as Zipcar, the taxi service Uber and the home-rental site Airbnb. Not only financially, the leasing trend is beneficial. Many millennials are considering this option for both environmental and economic benefit. Reducing waste means lightening the burden on Mother Earth.
Despite a lot of rent, millennials still buy but don’t share. their smartphones. According to Nielsen research, some 85% of people between the ages of 18 and 34 own them, and these devices are the gateway to the sharing economy. Online applications are the most important route to rental and online shopping sites.
These arrangements are not only beneficial to non-owners. Renting your car, or using it to transport someone who doesn’t have one, means getting the most out of your investment. It’s even better to make money with it.
The Economy: To get an idea of the size of the trade and rental business, let’s look at the data for one of the largest clothing rental sites on the market. Subscriptions currently make up about a third of Rent the Runway’s revenue, said Heyman, Rent the Runway’s CEO and co-founder. Additionally, she said, the company hit $100 million in revenue in mid-2016 and raised more than $190 million in venture capital over six funding rounds. Hyman told Recode at the time that a $60 million funding round last year, led by Fidelity Investments, “significantly raised” the company’s valuation from the $520 million mark it set in 2014.
Renting clothes and accessories has created a new and fast-growing market. While most of the sites offering these services are startups, more and more large companies are starting to enter the market. For example, Amazon, which is not yet listed, may strike soon. Workwear brand Ann Taylor launched a $95 subscription service earlier last year, threatening smaller startups.
Environment: The fashion industry has a huge impact on our environment. Fast fashion, in particular, produces billions of dollars worth of clothing every year and is thrown away, often without recycling, leaving a heavy carbon footprint on the environment. Many clothing rental companies are working to eliminate this waste. They get together with designers who want to make clothing more sustainable, renting out clothes instead of overproducing them. Less fashion waste gets burned by renting instead of buying and disposing of them. Less waste leads to a cleaner planet and greater sustainability.
The founders of many clothing rental companies want to put fast fashion companies like H&M out of business. This environmental mindset is one of the biggest reasons after money and why young people are so interested in the rental trend.
Fashion Rental Services:
rent clothes online
Rent a runway:
The online rental service offers designer clothing for rent. Rent the Runways set a huge milestone in shopping as the first gown and evening gown rental store. The store does not operate on a monthly subscription, but rather operates on the value of the rented items. Usually, it’s 10-15% of the retail price.
Rent the Runway, which had more than $100 million in sales last year, now aims to “put Zara and H&M out of business,” co-founder Jennifer Hyman said in October. For $159 a month, RTR members can now borrow unlimited clothing and accessories, from shirts and dresses to coats and purses, and can borrow up to four items at a time. The goal is to become the customer’s professional wardrobe.
Rent the Runway has multiple brick-and-mortar locations in places like Woodland Hills and San Francisco.
These stores are a far cry from traditional stores, unlike showrooms that are an extension of a subscriber’s wardrobe.
This online rental service is available on a monthly subscription basis. Instead of paying for each item rented, subscribers pay $59 per month and get 3 items of clothing and 2 accessories shipped an unlimited number of times per month. If you often need to buy new clothes, for example if you are pregnant, then this service is ideal for you. Le Tote has a wide selection of maternity clothes. You choose which clothes to have delivered.
Gwynnie Bee is another monthly subscription service. For $49 per month, the store offers an amazing plus-size selection from which you can choose up to 10 items per month. Not only is it a great proposition, but the page has created its own community where members can share their clothing stories and support body positivity. Gwynnie Bee focuses on everyday wear, but they also offer gowns and evening wear.
The plus size equivalent of Glam Corner is Rent the Runway. Here, subscribers can rent designer dresses and gowns on a monthly basis. One of the company’s perks is inclusive sizing for all body types, including dresses that fit bumps.
This is a fast paced rental shop! Style Lend promises customers 2-day nationwide delivery and same-day delivery in New York. If the dress is not what you were looking for or doesn’t fit, Style Lend promises to replace the dress before the event or you will get your money back. Prices around $25 per rental are also good.
For owners, the sharing economy turns property into an income stream by making items always useful: people who only drive to get off work each day can rent their vehicles to other drivers during that time. For customers, the sharing economy offers convenience, value (cheaper for short-term use than outright purchase), and greater choice of products and services. It also offers ownership-free access — something that resonates with millennial consumers, who grew up in the recession, are economically savvy, and increasingly value experiences over material goods.
While other areas of the rental market have flourished and grown rapidly, growth in the fashion rental industry is slowing down due to logistical issues. Companies are working to fix these issues to make it easier and more convenient for consumers to rent and return clothes. In the next few years, clothing and accessory rentals are poised to beat fast fashion and toxic waste by disposing of clothes.
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