Rent, enjoy and return: The new fashion mantra

Bhavika, a 29-year-old IT executive, had grand plans for her wedding. Without compromising on her perfect look for her big day, she found a reasonable alternative. She opted to rent her reception lehenga for Rs 7,000 instead of buying it for lakhs of rupees. For her and many like her, renting has become a sensible option, without worrying about dry cleaning, storage or heavy financial expenses.

(Image Credit: DateTheRamp Lehenga)

So how does the clothing rental market work? India is home to over 40 startups that offer designer outfits at 10-15 percent of their MRP price, starting at as low as Rs 1,000 per outfit. A deposit fee is also charged which will be refunded if the clothes are returned without any damages.

Customers can either order online and get it delivered pan-India or visit retail stores of a few brands in cities like Mumbai, Delhi, Bengaluru, and so on. Most startups offer a rental period of at least three days with few offering four-day and seven-day rentals as well.

An industry that initially catered to a B2B marketplace, is now seeing a change with millennials and members of Zen-Z preferring to rent for special occasions.

"People had a mental block earlier and thought the clothes would not be well maintained. Now, people have become more financially prudent and smarter about renting. People who are funding their weddings find it practical to rent an outfit for Rs 10,000, save money and go on a vacation," said Shilpa Bhatia, founder of The Clothing Rental.

(Image Credit: Flyrobe Lehenga)

But the financial aspect is not the only reason why this trend is picking up. Aanchal Saini, CEO of Flyrobe believes that renting gives customers access to the latest trends, without repeating outfits but in a sustainable manner.

"I don’t think a lot of people cared about mindful consumption before, but post-COVID things have changed. People have now started to think about sustainability. They want to own 10-15 outfits instead of 100," she added.

Growing environmental awareness among the younger generation has also been an important growth driver for clothing rental companies this year. The sector is witnessing a rise in organic consumers not only from metros but from smaller cities as well.

(Image Credit: The Clothing Rental Lehenga)

"We are increasingly seeing customers who could afford to buy, but prefer renting, which is a sensible thing to do. People have started to justify to themselves that they are probably not going to wear these outfits more than once. So why buy," said Chinmoy Panda, co-founder of DateTheRamp.

From a long-term perspective, costs of production and environmental concerns are expected to rise which just means that renting clothes will soon be the next big trend in fashion.

A report by Future Market Insights has pegged the global market for online clothing rental at over $2 billion this year and is projected to double in a decade, with India and China leading the race. Even as India’s clothing rental sector is at a nascent stage, firms are confident that demand will stay strong.