The clothing rental market - France

The global clothing rental market is experiencing considerable growth due to increasing environmental awareness and the rise of online platforms facilitating new modes of consumption such as rentals. Valued at $1.9 billion in 2021, this market is projected to reach $3.3 billion by 2027, growing at an annual rate of 9.64%. In France, the market is following a similar upward trend, though no specific figures from 2020 onwards were directly provided. The demand is driven by a desire to access luxury fashion at more affordable prices, the pleasure of use over ownership, and addressing environmental concerns.

The French market, while still in its early stages compared to the US, is supported by platforms like Le Closet and Les Cachotiéres. The second-hand clothing market in France, a related sector, is also robust, with a valuation of 7 billion euros and growth projected to be 140% between 2019 and 2021. While specifics on the demand for ready-to-wear clothing after 2020 are not given, pre-2020 data suggests that women make the majority of these purchases, with the highest budgets observed in the 55-64 age group.

Environmental and ethical considerations are increasing in importance for consumers. In response, ready-to-wear brands are entering the rental market, emphasizing Corporate Social Responsibility (CSR) with programs like H&M's recycling initiative and Kiabi's rental proposition for affordable fashion. Rental platforms are diversifying their business models, catering to different customer segments and product ranges across various tiers, from budget-friendly to luxury items. The subscription payment model has gained popularity, ensuring steady revenue streams for the rental companies and providing customers with regular wardrobe updates.

However, achieving profitability remains a challenge due to high operational costs, evidenced by the disappearance of several rental startups due to financial difficulties.

Trends in the French Clothing Rental Market

In recent years, the French market has witnessed a growing trend towards clothing rental, a sector that finds its roots in the country's increasing environmental consciousness and the proliferation of third-party rental platforms. This market, although still in a nascent stage compared to its American counterpart, is showing promising signs of growth driven by consumers' shifting preferences from ownership to usage.

Approximately 18% of French people have engaged in product rental over the past year, reflecting a significant leap in the rental culture. The French clothing rental scene is diverse, catering to different segments ranging from luxury, special occasions, everyday wear, to sportswear. It is not only women who are contributing to the rental demand but men and children's fashion are also identified as growing niches. Major cities and urban centers are the focal points of this budding market.

As part of the second-hand clothing market, estimated to be valued between 6 and 8 billion euros in France and between 80 and 90 billion euros in Europe, the rental segment complements this by addressing both fashion dynamism and environmental considerations. The share of French consumers ready to incorporate sharing of goods stands at 66%, signaling a strong foundation for the rental market to expand. Price being a primary motivator, French consumers have shown a keen interest in renting clothes as a cost-effective means to access luxury fashion which would otherwise be significantly more expensive. This aligns with the typical French shopper's criteria heavily rooted in price and quality.

Additionally, with clothing waste becoming an increasingly concerning environmental issue, the motivation to rent rather than buy contributes to the circular economy, thereby reducing waste. The French men's clothing segment is particularly characterized by practical and deliberate purchases. The majority of men tend to spend less than 300 to 600 euros annually on clothing and show a preference for buying clothes that fit well, are easy to purchase, and require them to spend less time shopping. These specific preferences highlight the potential for the men's rental market to eliminate shopping-related irritants by offering a simple and convenient solution through rental services.

On the providers' end, French clothing rental players range from low-end to luxury brands, with offerings that include everything from everyday items to specialized clothing. Companies adapt diverse business models, with some opting for individual rentals, whereas others use subscription-based models. For example, Le Closet offers unlimited clothing rental for a monthly fee between 35 and 40 euros, and Possible caters to its clientele with subscriptions ranging between 35 and 90 euros a month.

Navigating the Fashion Forward Terrain: Top Contenders in the Clothing Rental Arena

The clothing rental market stands as a beacon of innovation within the fashion industry, aligning with the consumer shifts toward sustainability and the appeal of a constantly refreshing wardrobe without the commitment of purchase. Among the forerunners in this transformative sector, several names emerge as notable champions, each bringing a unique flair to the sharing economy of fashion.

• Le Closet pioneers the unlimited rental paradigm with their enticing monthly subscription plan. At 39.99 euros per month, subscribers get the freedom to mix and match with a personalized selection of three garments and two accessories. This model not only offers a taste of variety to its users but also secures a steady revenue stream for the company, ensuring operational liquidity.

• Une Robe pour 1 Soir addresses the charm of luxury and specialty attire by offering box rentals that cater to varying degrees of fashion indulgence. Their tiered subscription ranges from the Access Box at 69 euros a month, offering three products, to the Infinite Box at 179 euros a month, serving up to 16 products, thereby satisfying a spectrum of sartorial appetites.

• Diving into ethical and French or eco-friendly designer selections, Possible appeals to the environmentally and socially conscious consumer. The Intriguée plan starts at 39 euros a month for two pieces, scaling up to L'engagée at 89 euros a month for a generous eight pieces, framing ethical fashion as both accessible and luxurious.

• Bocage takes a step in a different direction with a dedicated shoe rental service. For a monthly fee of 34 euros, clients can walk a mile in various shoes, swapping out pairs every two months, making it an attractive option for footwear enthusiasts.

• Lastly, Baloum taps into the luxury accessory segment with its bag rental at 39.90 euros per month. This offer gives subscribers the pleasure of toting around designer handbags without the hefty price tag of outright ownership.

Together, these trailblazers embody the dynamism of the clothing and accessories rental market, each syncing with the new wave of consumers who prioritize usage over ownership, sustainability over fast fashion, and experience over accumulation. As the market continues to mature, these players will not only define the contours of this nascent space but will also pave the way for what may become the mainstay of future fashion consumption habits.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 04/12/2022

Summary and extracts

List of charts

• The clothing rental market
• Sales trends in personal and household goods rental
• Average ready-to-wear budget per woman and age group
• Main criteria for buying clothes
• Trends in volume consumption of various women's ready-to-wear items
• Reasons why French women go shopping
• What kind of clothes do you buy?
• Ready-to-wear brands preferred by 18-30 year-olds
• Main sources of influence on ready-to-wear purchases according to age
• Breakdown of men's annual clothing budget
• Reasons why men don't like shopping
• Is this a strategic topic for you?
• Percentage of French people who have bought at least one second-hand fashion item, by network