Rental of clothing and accessories has become increasingly popular in recent years. Millennials especially are big supporters of this trend. In fact, millennials are 3 times more likely to use a clothing rental service than non-millennials. There are many reasons for this behavior.
First, college debts and the financial crisis make it impossible for young people to buy designer clothes. Thus began the trend of renting clothes. Instead of buying a trench coat, why not rent it for a month or two? And a dress for a wedding or an important event? Plus, profitable!
The practicality behind this reason slowly became a trend. Millennials view second-hand renting and buying as sustainable and financially beneficial. Problems are being reduced, such as reducing waste in landfills. Many renters also shop at thrift stores. Buying used clothing makes it easier to resell it rather than throw it away when you no longer like it. There is a constant trade.
There are two different types of tenants. Those who have an event and just don’t have appropriate attire or those who are making the most of the rental trend. Many tenants use the rental service several times a month to dress for work or events. Most of the time, events stay in the same circle and it shows if someone is wearing the same outfit at all times. Dressing for business meetings is another reason to rent rather than buy. Women and men want to present themselves and their company in the best light. Wearing a suit or dress that fits well can help.
It is no longer said that no one else comes to a prestigious luxury event in a dress or tuxedo that is rented and not owned. A hectic social life coupled with the onslaught of social media has made going back to wearing clothes or bags almost inexcusable and unacceptable. So in such circumstances, it makes little sense to invest thousands of dollars in clothing that will be worn once. Unless you are a blogger who receives new clothes for each event, renting is exactly what you should do.
The “no-ownership” lure is now moving beyond housing and cars. Fashion and accessories are now two of the biggest rental industries on the rise. It makes perfect sense for people who can’t afford luxury brands, but rely on dressing well frequently. The new generation enjoys multiple experiences and wants to be fashionable and fashionable, without the pressure of permanent ownership.
Le Tote president Brett Northart said clothing rental has taken off because consumers want flexibility in their wardrobe. Plus, the recession made people less in love with owning things, he said.
Even if we are seeing a lot of benefits for consumers, this has its downsides. Small and even larger retailers had to struggle with the rental business in the past. Now they need to adapt in order to compete. Many retailers have already started a rental and use branch for their business. A new industry based on sharing or renting clothing, electronics and small appliances has emerged out of nowhere about five years ago, representing a disruptive force for traditional retailers.
Advantages and disadvantages for the parties involved:
Retailers: “Apparel will have a hard time remaining a priority spending,” Marshal Cohen, chief industry analyst at The NPD Group, told Retail Dive. “You are competing for your share of the portfolio as younger consumers seek and spend on services and experiences more than ever.”
Retailers need to start taking action and jump on the bandwagon of renting clothes to customers. If your brand is not innovative or a popular Instagram / social media brand, sales will drop soon. Many large companies have already had to downsize clothing stores due to this change in customer behavior.
Consumers: This new industry based on sharing or renting clothes, electronics and small appliances is growing, threatening the retailer. But what about the consumer?
Student loan debt and the Great Recession almost forced the youth of our society to find a different way to dress well in quality clothing. Sharing becomes a great alternative to owning. These behaviors have led to companies such as Zipcar, taxi service Uber, and home rental site Airbnb. Not only economically, the rental trend is beneficial. Many Millennials are considering this option for the environmental and economic benefits. Less waste means less burden on mother earth.
Despite all the rent, there is one thing that millennials still buy and don’t share. Your smart phones. About 85 percent of people ages 18 to 34 own them, according to Nielsen research, and the devices are the gateway to the sharing economy. Online applications are the most important gateway to online rental and shopping sites.
Not just for non-homeowners, these arrangements are beneficial. Renting your car or using it to transport people who do not own a car means getting the most out of your investment. Earning money with it is even better.
Economics: To understand the dimensions of the retail and rental business, let’s take a look at the numbers from one of the largest clothing rental websites on the market. Right now, subscriptions account for about a third of Rent the Runway’s revenue, said Hyman, CEO and co-founder of Rent the Runway. Additionally, he says, the company reached $ 100 million in revenue in mid-2016 and has raised more than $ 190 million in venture capital in six rounds. The latest, a $ 60 million injection last year led by Fidelity Investments, set the company’s valuation at a “significant step” from the $ 520 million mark it set in 2014, Hyman told Recode at the time.
The rental of clothing and accessories has created a new market that is growing rapidly. While most of the websites offering these services are startups, more and more large companies are starting to enter the market. Amazon, for example, which is not yet on the market, could strike soon. Ann Taylor, the workwear brand of choice, launched a $ 95 subscription service early last year, threatening a smaller startup.
Environment: The fashion industry weighs heavily on our environment. Especially fast fashion that produces billions of dollars worth of clothing each year and is thrown away, usually unrecycled, leaves a huge carbon footprint on the environment. Many clothing rental companies are trying to fight this waste. They hang out with designers who want to make clothes more sustainable and rent clothes instead of over-producing them. By renting for occasions rather than buying and discarding, you can reduce the fashion waste that is burned. Reducing waste leads to a cleaner and more sustainable planet.
Many clothing rental company founders hope to take down fast-fashion companies like H&M. This environmental thinking is one of the main reasons, besides money, why young people are so interested in the rental trend.
Fashion rental services:
rent clothes online
Rent the gangway:
The online rental service offers designer clothing rentals. As the premier nightwear and dress rental store, Rent the Runways has set a huge shopping milestone. The store does not operate with a monthly subscription but with the value of the rented piece. It is usually 10-15% of the retail price.
Having made more than $ 100 million in sales last year, Rent the Runway is now aiming to “get 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 blouses and dresses to coats and purses, and up to four items at the same time. The goal is to become a full-time client’s wardrobe.
Rent the Runway has opened several physical outposts in locations including Woodland Hills and San Francisco.
These stores are far from traditional stores, instead acting more like showrooms that are an extension of subscribers’ closets.
This online rental service operates on a monthly subscription basis. Instead of paying for each piece that is rented, subscribers pay $ 59 per month and receive 3 garments and 2 accessories delivered, unlimited times per month. This service is ideal if you are in constant need of buying new clothes, such as if you are pregnant. The Tote has a great selection of maternity wear. You can choose the clothes you want to be delivered.
Gwynnie Bee is another monthly subscription service. For $ 49 a month, the store offers an incredible selection of plus sizes from which you can choose up to 10 items per month. Not only is this a great deal, but the page has created its own community where members can share stories of their outfits and support body positivity. Everyday wear stands out at Gwynnie Bee, but they also offer dresses and looks for the evening.
Glam Corner is the plus size equivalent of Rent the Runway. Here subscribers can rent designer dresses and gowns for a monthly fee. A special gift from this company is offering inclusive sizes for all body types, including shock-fitting dresses.
Here’s a fast-paced rental store! Style Lend promises the customer 2-day nationwide shipping and same-day New York shipping. If the dress is not what you were looking for or does not fit, Style Lend promises to change the dress before your event or you will get a refund. The price, which varies around $ 25 per rental, isn’t too bad either.
For owners, the sharing economy transforms possessions into sources of income, by allowing items to be useful all the time – someone who only uses their car to get to and from work every day can rent the vehicle to other drivers in the meantime . For customers, the sharing economy offers convenience, value (it is cheaper to pay to use something for a short period than to buy it outright) and a greater variety of products and services. It also offers property-free access, something that has resonated with millennial consumers, who came of age in the recession and are economically minded, and who increasingly value experiences over material goods.
While other areas of the rental market are already booming and growing rapidly, the fashion rental industry is growing more slowly due to logistical problems. Companies are working on solutions to these problems to make the process of renting and returning clothes even easier and more convenient for the consumer. In the coming years, clothing and accessory rentals are expected to defeat fast fashion and toxic waste by disposing of clothing.