Report Description

The United States online clothing rental market is anticipated to register an impressive CAGR during the forecast period owing to factors such as expanding e-commerce fashion market and rising participation of people at social occasions.

Online clothing rental services allow users to rent clothes and other accessories for a certain period. Owing to the availability of these services, consumers can avoid buying new clothing for special occasions, which helps them save money.

The online clothing rental services may be helpful for people who want to purchase new costumes for special events, including weddings, theme parties, business events, photo sessions, and movie shoots. For those who cannot buy clothing from their favorite brands, rental services provide an affordable alternative. Additionally, renting products would be seen as a more environment-friendly way to consume clothing nowadays since businesses are making sustainability a significant component of their marketing strategies. It would be better for the environment and natural resources to wear clothing that has been rented because it would lessen harmful emissions and other pollutants. By introducing clothing rental services into their business and sustainability goals, clothing manufacturers could also raise their social manufacturing standards.

The online clothing rental market in the United States has seen significant growth in recent years, with more and more companies entering the space to cater to this demand. These companies offer a wide range of clothing options for different occasions and preferences, from everyday wear to special events.

Furthermore, many online clothing rental companies are leveraging advanced technology to improve the customer experience. For instance, some companies offer personalized recommendations based on a customer's style and size preferences, while others use AI-powered algorithms to optimize inventory and reduce waste.

Rising Popularity of Subscription Services Fuels the Market Growth

The rising popularity of subscription services is indeed fueling the growth of the United States online clothing rental market. Subscription services offer a convenient and cost-effective way for consumers to access high-quality and fashionable clothing without having to commit to buying and owning them. This trend is particularly appealing to younger generations who prioritize sustainability and value experiences over material possessions. Due to the COVID-19 pandemic, there have been substantial changes in online clothing rental marketing. Its emphasis has shifted to the adoption of subscription-based services. Customers can rent three to four items of apparel at once with this subscription for an unlimited time in exchange for monthly payments. Retailers are increasingly offering subscribers online clothing rentals on a monthly or quarterly basis as part of a growing trend in the online clothing rental market. These services help businesses in connecting with a variety of customers, as well as save time when recruiting new clients and creating recurring income. The most well-known and earliest company in this industry, Rent the Runway, has long been recognized for its formal clothing in the United States. The business now provides a wide selection of clothing for every occasion. Gwynnie Bee, New York & Company Closet, Nuuly, Armoire, and Vince Unfold are other brands that provide subscription plans in the United States. Therefore, the increasing popularity of subscription-based services in the country drives the United States online clothing rental market growth during the forecast period.

Growing Internet Usage Fuels the Market Growth

The growing internet usage in the United States is indeed fueling the growth of the online clothing rental market. With more people relying on the internet for their shopping needs, online clothing rental companies are able to reach a wider audience and offer more convenient and accessible services. Nowadays, many individuals frequently purchase apparel online owing to the convenience, ease of price comparison, and ease of research, which outweigh the effort required to visit a physical brick-and-mortar store. According to National Retail Federation (NRF), U.S. consumer expenditure on e-commerce is expected to reach a record USD 1 trillion in 2022 due to the pandemic-driven shift to online buying. Due to the availability of online rental platforms, consumers may purchase and rent any type of apparel with a lower expenditure of money and for extended periods. For instance, Rent the Runway is a US-based online clothes rental company that enables consumers to purchase designer clothing and accessories for rental. The company's e-commerce platforms offer customers a wide selection of designer dresses, tops, sweaters, coats, pants, skirts, gowns, jumpsuits, activewear, maternity, etc. As they disseminate information about established companies and newcomers in the online clothing rental industry, social networking sites such as Facebook and Instagram and online communities significantly impact the market's expansion and growth. In January 2022, there were 307.2 million internet users in the U.S., 92% of the population is connected to the internet in the United States. Additionally, the internet has also made it easier for online clothing rental companies to showcase their products and services, with many companies investing in user-friendly websites and mobile apps that allow customers to easily browse and select items. This has also facilitated the growth of social media platforms, where customers can see and share fashion inspiration and trends. Therefore, the increasing penetration of the internet in the United States is driving the market growth of online clothing rental services in the country. In addition, the internet has enabled online clothing rental companies to collect and analyze data on customer preferences and behavior, allowing them to offer more personalized and tailored recommendations. This has led to increased customer satisfaction and loyalty, which in turn drives further growth in the online clothing rental market.

Socially Conscious Customers Find Comfort in the Ability to Rent

The ability to rent clothing has indeed become an appealing option for socially conscious customers, and this trend is fueling the growth of the United States online clothing rental market. Renting clothing allows customers to enjoy new styles without contributing to the environmental and social issues associated with fast fashion and excessive consumption. Consumers are concerned about the environment, frequently looking for sustainable practices in the brands they buy from. Socially concerned consumers are successfully persuaded by fashion businesses to rent their clothing rather than purchase it. Fast fashion accounts for 50% of women’s clothing spending, frequently on items that may only be used a few times each. Renting clothing gives consumers a chance to save money and persuades them to reconsider how they put together their wardrobes. Renting a dress might be a blessing for millennials. One advantage of renting clothing is that firms may satisfy customers’ desire for individuality while using limited resources. Furthermore, many online clothing rental companies are also giving back to society through various social initiatives, such as supporting local communities, donating clothing to those in need, and contributing to environmental causes. Therefore, the ability to rent clothing is increasingly appealing to socially conscious customers, and this trend is driving the growth of the online clothing rental market in the United States. As more customers prioritize sustainability and social responsibility in their shopping decisions, online clothing rental companies will continue to innovate and improve their services to meet these demands.