In the age of subscriptions and prime memberships, owning things has become a very inflated concept. And the vast millennial population has conveyed this very efficiently and clearly with the success of companies like Rentomojo, Zoomcar, OYO, Grabhouse, and many others.
Today, the sharing economy is seen as the best way forward. Although the concept of rentals, sharing, or pooling is not as prevalent in India as it is in the West, it is slowly gaining ground.
While real estate, furniture, cars, etc., have outperformed the lease and rental model, the apparel and accessories sectors are now rapidly gaining market share. It has a vast and lucrative market for those who cannot afford luxury goods but appreciate the taste and quality of such brands.
Research shows that by 2025, that many areas of the sharing and rental economy will rival the size of their traditional Indian counterparts.
Statistics and Figures
Analysts estimate that the Indian fashion rental market is expected to have an annual growth rate of 10.6% in the coming years. The industry is already capped at Rs 12,000 crore. The growth of fashion rental start-ups such as Stage 3, Liberent, and RentACloset is adding to the segment and is expected to reach $1,856 million by 2023.
The Best Players in the Indian Rental Fashion Market
Flyrobe is India’s first and largest online clothing rental service. It allows people to select clothes through an online platform and have them delivered to their homes on a rental basis.
RentACloset is a start-up that allows consumers to rent a complete wardrobe. It enables people to rent luxury clothing and accessories through RAC to experience new style statements and even earn money by renting out. People can buy/rent new luxury clothes and accessories from RAC’s extensive designer collection.
Stage3 is an online unisex clothing rental platform. The platform’s product list includes western clothing and ethnic clothing suitable for occasions such as weddings or parties. The company offers the possibility of renting or buying the mentioned products. It started as a rental platform focused on women’s clothing and has grown and developed since to provide an extensive range of clothes.
OhLook is a subscription platform for men’s clothing. It is aimed at men in offices and college and provides them plenty of plain or casual designer T-shirts options. Fashion stylists list new styles each week, which get exchanged for a new collection in the subsequent week. The subscription can be made for a minimum of one month.
Future of Online Clothing Rental Businesses in India
The rise of the internet and increased consumer awareness has made India a very profitable market among South Asian countries. Moreover, shoppers in developing countries like India are finding excellent ways of getting to their preferred garments instead of buying them.
The rental market in India could become a growth model riding on e-commerce growth and start-ups want to encompass the entire industry. While it’s too early to predict the actual future of this segment, renting fashion is undoubtedly a boon for millennials and GenZ, and start-ups are becoming the next big thing in the model lease industry.