Is renting the future?

Everywhere in the press at the moment are discussions about renting fashion, and many emerging labels are now considering if this could be an additional service they offer.

There are now lots of rental platforms opening up with companies such as Rent the Runway or My Wardrobe HQ leading the way. But retailers are also now getting in on the action, as a way to manage the over stock issues they have. In June 2021, Harrods partnered with My Wardrobe to create a rental department in their store, to rent out their overstock of occasionwear.

Though many brands are suspicious initially, renting can offer a smart way to engage with new customers. As many customers rent a product to test it and then eventually buy it. In fact My Wardrobe say 70% of rentals convert to sales.

Therefore renting could not only tap into new consumer segments, it could also offer a new outlet for the more expensive or Avant Garde pieces of a collection. However, the downside can be the logistics and processes needed to manage the model. To satisfy customers’ needs, you need to consider how to offer hassle-free deliveries and returns, as well as consider how to deal with cleaning and mending – which is why most brands work in partnership with one of the established platforms.