What Problem Is Fashion Rental Solving?
Can Rental Be The Answer To Fashion’s Failure To Be Sustainable?
The time has come for rental and subscription models to be normalised within the fashion world.
There’s no denying that the pandemic hit the fashion industry hard, and exposed cracks that could not be unseen. As the world is adapting to a ‘new normal’, the brands are feeling the pressure to address their unsustainable practices and create strategies for a ‘better’ future for fashion. That’s where rental platforms come in and are providing a solution to companies who recognise the benefits rental has for both the business and the consumer.
It’s no longer about the ‘consumer’ or ‘consumer journey’, it’s now about the ‘user’ and ‘user experience’. How do we use and experience fashion, rather than how do we consume it?
Circular subscription packages have long been the norm in gyms and apps such as ‘Spotify’ and ‘Netflix’ are built on this foundation, but why can’t it apply to how we consume our clothing as well?
Apart from the appeal of having access to new luxury clothes at a more affordable price point, consumers are no longer looking at rental as just an ‘occasion wear’ platform. It’s now something they can incorporate into their daily lives as part of a ‘living wardrobe’ and it is also a much more environmentally friendly way of ‘shopping’.
Brands are embracing this movement and are themselves pledging to implement more circular methods in their approach to designing and producing fashion. The global rental sector is seen by many as a massive business opportunity and is estimated to grow by 10% by 2023 to US$1.9 billion. From a business perspective, it provides an extra revenue stream and a way of testing the popularity and success of products before committing to manufacture them in large quantities.
“Clothing rental is one of the most obvious ways to reduce waste and slow down our consumption levels, whilst still enabling people to indulge their need for novelty and self-expression.” — ThredUp
In rental, the circular strategy means reconsidering how clothing is being consumed and shifting to a more community-minded approach of temporarily investing in high-quality pieces. Instead of keeping clothing for a long time, see it as a more transient model, shared by many, that decreases consumption of fast fashion whilst satisfying the desire of dressing ‘on trend’.
What a circular economy looks like
The graphic below illustrates the difference between several types of economies. The first, the linear economy is most commonly used today and the one we are most familiar with - whereby clothing gets used and discarded. The second economy type is the ‘recycling economy’ which is more sustainable than the linear economy, however, it still means that clothes are designed for disposal. A circular economy, on the other hand, keeps products in circulation for as long as possible, extending their lifecycle and causing less harm to the environment.
Source: École des Ponts Business School
Designing and consuming clothes with a circular mindset means being aware of the social and environmental effect our wardrobes have on the planet and the people on it
Reports from ThredUp 2020 Resale Report show that clothing rental and subscription businesses are expected to grow by 28% and 21% respectively over the next five years. This means that the actions and mindset of consumers are changing as we collectively aim to ‘buy’ better. The way people consume clothing is evolving and sustainability is leading the change.
Rental is giving people access to high-quality clothing and craftsmanship at a fraction of the price
According to McKinsey’s State of Fashion report, “a key driver for the rental business will be young people wanting to satisfy their craving for newness while also ensuring they are taking steps to minimise their carbon footprint by buying new clothes made from virgin materials.” For example, to rent the A_C Florence Doctor Bag for 14 days costs $118.50 compared to purchasing it at full price for $319.
Our understanding of ‘ownership’ is changing
Rental puts an emphasis on well-made clothing using responsible practices that are usually at an out-of-reach price point for some - steering consumers away from ‘fast fashion'. Gone are the days when ‘owning’ a new piece of clothing is a necessity and results in a shopping trip. The potential for rental to reach beyond occasionwear (where it first started) is vast. Extending the offering to cater towards travel needs, maternity, menswear and childrenswear is a logical next step for the rental market. Subscription models are another.
Imagine you have a family ski trip planned and instead of purchasing all the winter gear that will only be worn once, you rent it instead? It fulfills your needs and saves the environment and precious pennies. This does not mean rental will make up the entirety of our wardrobes, but it will make up a part of it that will be mixed in with sustainable and pre-loved pieces you already own and love.
Have you considered renting your winter wardrobe for this year?
Clothes are once again bringing us joy without the guilt
We can enjoy clothing we truly appreciate and have access to an evolving wardrobe. This means less consuming and more sharing. Instead of carrying around heavy luggage filled with holiday outfits, what if you could pick up your curated vacation wardrobe at the hotel, enjoy it and then send it off as you head home? That’s the reality that rental platforms can offer consumers - a newness and excitement they desire and can now afford.
“Rental, resale and refurbishment models lengthen the product lifecycle while offering the newness consumers desire.” — McKinsey
Circular customer experience = more customer retentions + access to a younger audience
Younger generations demand more transparency from brands and in response companies are prioritising sustainable practice to capture this youth-driven audience. This creates a good example for the big players of the fashion world - who are still very behind in the sustainability movement - to lift their ‘green’ game if they want to engage and attract Gen Z and Millennial buyers. More customers also means more profit. In a survey, Vestiaire Collective conducted they discovered that 77% of their European, American and Asian customers say that sustainability is important to them. This is confirmation that rental fosters long-term customer relationships and also creates more profit opportunities for business.
As fashion companies are setting new sustainability standards for themselves, rental is becoming a business marketing tool
As brands become more aware of the effects that fast-fashion and throw-away culture have on the environment it is igniting a change for a more sustainable future. A report by the Ellen MacArthur Foundation states that “there are numerous opportunities for innovative business models to be employed by the fashion industry, including subscription services, clothing rental, and peer-to-peer sharing”. American retailer, Ralph Lauren has announced its new strategy which is built on the following 3 pillars:
Design for circularity
Establish circular experiences for consumers
Advance a circular product economy
The Lauren Look by Ralph Lauren
Ralph Lauren has embraced the rental revolution and has launched ‘The Lauren Look’ which is a branded rental platform “that provides unlimited access to the latest styles, delivered to your door” for a monthly subscription price. And if you want to keep it afterwards, you can do so at a special members-only price. On top of this, they have also partnered with McDonough Innovation to receive a Cradle to Cradle Certification, a “globally recognised measure of safer, more sustainable products” with some of their most iconic pieces. This is a step in the right direction as the fashion industry sets new standards.
Subscription-based models are changing the way clothing is designed - and it’s no longer for fast disposal
Rental services are a great solution to extending a product life-cycle and keeping clothing in use, rather than sitting in wardrobes or in landfill. This is shifting how clothing is being produced; from fast-fashion items to high-quality garments.
“Designing and producing clothes of higher quality and providing access to them via new business models would help shift the perception of clothing from a disposable item to a durable product.” — Ellen MacArthur Foundation
Most consumers appreciate quality, but the common response for why they end up purchasing fast-fashion products is budget constraints. Rental models alleviate this pain and make frequent outfit changes and staying ‘on trend’ more sustainable and affordable.
Rental is the shopping of the future
The rise of rental is undeniable. Consumers and brands are all becoming more and more aware of the implications our shopping habits have on contributing to the problem of fast fashion. Rental is a real solution in facilitating the consumption of new and trendy clothing in a more conscious way. It encourages the creation of high-quality and durable clothing production and gives access to people who may not have been able to afford this before. This is great news for businesses who are already tapping into this to provide customers with a more circular brand experience. It’s also a good opportunity for brands to become more sustainable, adds an additional revenue stream and serves as a great marketing tactic. Rntr. believes that rental reaches much further than occasionwear and is here to stay - it will one day become a normal way to keep 20-30% of our wardrobes on rotation and put fast-fashion companies out of business.
