Harrods joins the $990 million clothing rental market with My Wardrobe HQ

The rental service for designer clothes is picking up at a rapid pace. Very soon, the most renowned department store, Harrods, is gearing up to start the rental service. The buzz started after Carrie Johnson wore a rented gown for the wedding. The supplier of the dress, My Wardrobe HQ, is partnering with Harrods for the new rental service. From its Knightsbridge location, the company will rent out designer gowns. The company offers rental services from four to 14 days in duration.

The Pandemic created a massive demand for fashion rental services. Over the last year, there has been an increase in interest. Initially, renting clothes was uncommon. However, as companies became more climate-conscious and prepared to implement environmentally friendly norms, more people gravitated to sustainable materials and products in the fashion industry.

The shift in consumer behavior paved the way to derive solutions for the sustainability crisis. Every year, nearly £140 million worth of used clothing goes to waste, creating a considerable pile in the landfills. Yet a study by the Finnish scientific journal Environmental Research Letters throws light on the cost incurred on this service for delivery and packaging.

Nonetheless, the business can lure customers as they can get access to brands like Gucci that cost £3,000 for a suit for a small price of £30 a day. The affordability and access to luxury items drive the business idea. 

A report says the global online clothing rental market would be boosted by USD 990 million, at a CAGR of almost 10% during 2021-2025. The large selection of clothing for every occasion, which is attainable at a lower cost, drives the online rental market. 

With proper advertising channels, the Middle East, which has enormous growth potential, can boost the economies of small businesses and international clothing rental companies. This business model benefits both the company and the user because it is cost-effective, subscription-based, and provides a competitive advantage.

The UK brings a massive landscape for rental services as it booms with companies working towards sustainability in fashion. Some of the leading companies in the UK are Hurr Collective, Rotaro, Cocoon Club, My Wardrobe HQ, etc. 

The United States is a significant player in this segment, with platforms such as Rent the Runway, Gwynnie Bee, Armoire, and others. The signet acquired jewelry rental – Rockbox is a platform that provides members with access to designer jewelry from brands such as Sophie Harper, Kendra Scott, Aster, and others. Consequently, North America contributes significantly towards the online clothing rental market. Southeast Asia is also gaining traction in the business, with many online platforms such as Style Lease, MADThreads, and Covetella, among others, allowing users to choose from more than 200 brands for special occasions.

China explores the sharing economy and expects it to represent 20% of GDP by 2025 with flourishing companies like MsParis, Y-Closet, Starluxe, etc.