The Rise of Rental Fashion: Why Borrowing is the New Buying

Today, it’s becoming popular for many to borrow clothes for a limited time instead of making the full purchase. By renting clothes for the short term, customers can experience the freedom to wear what they like for a more eco-friendly alternative. They can access a variety of items, whether that’s for a special occasion or everyday wear.

According to Statista the revenue of the rental apparel market was $6.26 billion in 2023 and is expected to grow to $7.45 billion by 2026. This is driven by many factors including sustainability preferences, economic appeal, and cultural shifts.

Access over ownership

The new concept of ‘access over ownership’ has gained traction. Within the consumer environment today, minimalism has become a trend and is seen as the ideal way to live promoted through social media and advertising. Following on from the minimalist lifestyle, individuals aren’t as concerned about owning luxury items and would rather have the ability to access a wider range of items that they normally are unable to afford. Due to the anti-consumerism approach, individuals prefer to have access to experiences over goods and renting will aid consumers in doing so.

Renting for a greener future

Sustainability should be a primary focus for brands today. Many consumers have environmental concerns as to the impact their purchases have on the environment and the story behind the material sourcing. Shoppers need clothing that aligns with their values and beliefs, knowing it has been sourced responsibly. Lowering the demand for the constant turnaround of new clothing items is where rental fashion comes into play and supports the conscious consumer.

By promoting the reuse of clothing items, rental platforms can ensure that clothes are used multiple times by different users, extending their longevity of garments while decreasing overproduction, and landfill waste – all of which act as key elements when adhering to becoming more sustainable.

Shoppers are frequently on the lookout for new clothing items, and with social media and influencers promoting, there is a constant demand for fresh garments resulting in fast fashion. A large percentage of individuals often buy clothing that they will only wear once before disposing of. One in three women believe their clothing is ‘old’ after two wears, which highlights the negative environmental impact this can have. The rise and recognition of fast fashion have acted as a force multiplier for the rental fashion industry.

Renting clothes not only reduces waste and lowers the carbon footprint but also acts as an overall more sustainable solution. According to British Vogue, renting one single item can reduce up to 24% water usage, 6% energy and 3% CO2 emissions compared to buying a new item. Buyers and sellers are therefore able to prolong the life of clothing.

Luxury for Less

Following on from fast fashion, items for special occasions like weddings and parties are typically only bought for the event and then disposed of. However, renting an occasion-specific garment is a better alternative for those who are looking to get better value for money and have a positive sustainable impact.

Luxury fashion is traditionally seen as the more expensive and exclusive side of fashion. This is where the role of rental fashion can come into play and allow shoppers to rent luxury items for special occasions. This allows them to wear or use something of luxury, for a limited period, that customers may not typically be able to afford. Many platforms such as Hurr, Rent the Runway and My Wardrobe HQ, rent out high-end pieces of clothing to customers. Providing the exclusivity from top designer brands that a customer usually wouldn’t be able to afford, broadens the customer base and provides opportunities.

The Role of Technology

Rental fashion platforms can utilize technology to amplify their operations. Technology has a huge presence in the retail sector, and deploying the right technology provides the opportunity to grow fashion rental platforms.

• Teamwork’s Customer-Relationship-Management (CRM) service can allow rental brands to access customer preferences and view user history to provide recommendations. With this information, brands can tailor their visuals to specifically fit a consumer’s needs, providing a unique customized experience and opportunities to upsell rented pieces. The technology can also help to facilitate the seamless automation of operations through sending notifications of pick-up and return dates as well as reminders about newly available items to rent which can overall improve customer engagement

• Mobile Point-of-Sale (POS) enables brands to provide top-tier experiences, building and nurturing customer relationships. As a result, the likelihood of customers returning to rent more items can significantly increase. Teamwork’s POS devices easily integrate with new payment providers allowing customers to make a seamless transaction whether that’s at the mobile POS in-store or at a rental pop-up event, it’s practical for shoppers to check out quickly and effortlessly

• Ensuring that rental items are returned without complete and without damage is a key priority for rental platforms. Receiving faulty items back can limit unreliable customers’ ability to purchase, helping companies avoid losses. RFID tags can be used to identify whether items have been returned incomplete, damaged or replaced with duplicates. Fraud prevention is critical in rental fashion and deploying RFID is extremely useful.

Why borrowing is the new buying

Borrowing is becoming a new buying method in rental fashion, offering a cost-effective and sustainable way for customers to access items without the commitment to full ownership. By combining innovative technologies such as mobile POS, RFID, and CRM, retailers can provide customers with a seamless omnichannel experience. Shoppers can browse inventory online, reserve items, pick up items in-store or get them delivered – overall improving the customer rental experience.

To find out more about how implementing Teamwork Commerce’s technology can help rental fashion brands grow, visit here.