The online clothing rental market is set to experience a significant increase in size by USD 3.00 billion between 2021 and 2026, according to a new report by Technavio.

The market's growth momentum will slow down at a CAGR of 17.91%. The report also identifies the rising popularity of experiential marketing as a key trend in the market, with vendors incorporating consumer participation in various marketing activities to attract more consumers to their platforms. Experiential marketing campaigns, including live marketing, participation marketing, loyalty, and event marketing, are particularly effective in targeting millennials, who represent the most important target group for these efforts. This trend is expected to drive growth in the online clothing rental market during the forecast period.

A significant growth in the women's segment is forecasted due to the increasing popularity of renting clothing for different occasions, as occasional clothing wear is priced higher than rental options. The environmental impact of dumping unwanted clothing into landfills is also driving the adoption of online clothing rental services. Additionally, the increasing number of working women who prefer online shopping due to a hectic lifestyle is contributing to the demand for online luxury apparel.

Geographically, the APAC region is expected to contribute to 44% of the market's growth during the forecast period, driven by the demand for affordable fashion and a wide assortment of fashion goods.

While the growing e-commerce fashion industry is a major driver for the online clothing rental market growth, inventory management is one of the primary challenges facing the market. Vendors must maintain a strong inventory management system to avoid stock-outs and ensure timely replacement of older clothing items with new items.

Additionally, a high-speed reverse logistics system is needed to complete product returns. Weak inventory management could affect the overall business of vendors operating in the global online clothing rental market.

By Fashionating World
https://www.fashionatingworld.com/new1-2/women-s-segment-to-drive-growth-in-online-clothing-rental-market-due-to-occasional-wear-pricing-environmental-concerns