What's driving the fashion rental market in India

The global market for fashion rental is expected to expand at a CAGR of 11% from 2021 to 2031. With the model gaining popularity among young consumers, India may not be far behind. A peek  into what’s driving this growth.

- Anagha R Ratna

Deepa Kalro turned her unused ethnic garments into a thriving clothes rental business. That was seven years ago and today The Dress Bank rents about 300 dresses in a month. “After my wedding, I noticed the heavy ethnic wear I had were laying around in the wardrobe gathering dust with no occasion to wear it. We have so many waste resources and how can we make the most of these, I thought. This is where the idea came from,” shared Deepa Kalro, founder of The Dress Bank, a bridal rental showroom in Bengaluru. Fashion rental business although not new is picking up in India. The recent growth is driven by several factors, including the rise of social media, the increasing cost of clothing, and the increasing inclination toward sustainability.

 Worldwide too, it is a big business that is witnessing healthy growth. The global online clothing rental market was valued at $1,013 million in 2017 and is estimated to reach $ 1,856 million by 2023, registering a CAGR of 10.6% according to a report by Research And Markets.com.

 The concept took o in 2009 when Rent the Runway, a US-based e-commerce platform allowed users to rent, subscribe or buy designer apparel and accessories. Ever since the company has been registering strong growth. Its revenue for the third quarter of 2022 rose 31% year-over-year, while its active user base increased, with subscribers beginning to use the platform for more than just special events.

Earlier, people used to rent only high-end unaffordable luxury clothing for special occasions. Nowadays, people can rent any clothing items online that complement their everyday wardrobe.