The Future of Rental Fashion

It is hard to imagine a world without clothing. We are constantly in contact with clothing, whether it is in magazines, on billboards or just people on the street. Consuming and wearing clothing is part of our identity. Unfortunately, the clothing industry has developed into the second largest polluter in the world and can be held accountable for severe problems in society, environment and economy. Furthermore, it is currently one of the world’s largest consumer industries and fashion consumption is estimated (acc. to Global Fashion Agenda) to increase 60% by 2030. There is an urgent need for more sustainable practices to implement in the industry. We present the business model of renting clothes.

Why could it reduce your ecological footprint?

The most important point why renting and lending clothes is more environmentally friendly than buying new is that no new clothes are produced. This can save valuable resources, such as water or energy. The production of clothing is a very resource-intensive process that emits large amounts of CO2. In addition, the production of one pair of jeans requires up to 8000 litres of water, as the cultivation and dyeing of cotton is a very water-intensive process.  The high consumption of resources runs through the entire supply chain, from the growth of raw materials to the disposal of the garments after they have been worn. 

By renting clothes, each garment is kept in a closed loop for longer before it is ideally recycled or upcycled. It therefore reduces textile waste, as well as the production of new goods. Impulse or bad purchases can be prevented through rental platforms, as they aim to offer variety in the wardrobe without having to make a financial commitment. 

There are many fashion labels and brands that offer clothes produced with respect for nature and people. This is already a step in the right direction. However, these brands also encourage new purchases. Clothing production remains a resource-intensive process, even if it is produced according to higher standards. So much clothing already exists that we could fill several planets with it and it is estimated that clothing consumption will grow by 60% by 2030 compared to 2015. Shouldn't we therefore work with what already exists and not continue to drive consumerism?

The concept of renting fashion is gaining more and more attention in the fashion industry. Many big brands collaborate with rental platforms or even build their own  rental model into their business. Especially the aspect of sustainability is put in the spotlight here. In general, it is great when big companies pay more attention to the concept of rental, as it shows how much potential it has. Nevertheless, some research is required in order to see how deeply these companies integrate sustainability into their strategy. Aspects like shipping, cleaning and storage are important when it comes to offering an environmentally friendly alternative to buying new as these processes also emit CO2, consume energy, use water and use chemicals that can be harmful to the environment. In addition, the quality of the clothing is an important element for a low ecological footprint. Clothes that are produced to a high standard with high-quality materials can be kept in a closed-loop system much longer. Fast fashion is different; these items are produced for a short period of use and thus are not suitable to be worn for a long time. 

All in all, it can be said that it is not enough to focus on renting as the sole argument for sustainability, while the processes around it continue as before. 

The fashion industry is known to be more exclusive than inclusive. The body shapes and appearance promoted by the industry exclude many people which results in not everyone having the same opportunities to dress the way they want. 

Platform-based companies, in particular, have the potential to go beyond the core business of rental and strengthen the sense of community in a region.

As a new business model, rental opens new doors to create awareness and offers an assortment for everyone. To build an inclusive community, collaboration with different stakeholders is essential. Only by listening and sharing expertise inclusivity can take place. 

Which business models exist?

Within the concept of rental fashion, two different types of business models have been established. The first one is business-to-consumer interaction which is possible both online and offline and is based on businesses coordinating the acquisition, distribution and dry-cleaning of the clothing for a fee. The second one is peer-to-peer interaction, which is the activity of obtaining, giving, or sharing the access to goods and services, coordinated through community-based online services. In the case of peer-to-peer interaction, the business provides an online platform in which users can exchange their personal clothing among each other. There are also two basic differences when paying a fee. Either you are part of a subscription model, where you pay a monthly amount for a limited number of parts you can borrow, or a price per item per day is set, which is then added up depending on how long the item is rented.