The clothing rental market - France (2024)

1.2 The global clothing rental market

The clothing rental market is estimated to be worth US$*.* billion by ****. The United States has the largest market share. [***]

In the pre-pandemic period, the clothing rental market enjoyed impressive growth, fueled mainly by ever-increasing environmental awareness and a desire of regulated consumption, as well as the rise and spread of third-party platforms connecting individuals with each other or with brands that facilitate new modes of consumption.

The clothing rental sector suffered a significant impact during the pandemic, due to reduced demand for office wear as a result of telecommuting and event cancellations. As a result, more than half of the ***,*** subscribers to Rent the Runway, the leading clothing rental company for ** years, cancelled or suspended their subscriptions in the space of a few days. But demand picked up again after the pandemic, particularly for more expensive products that consumers now prefer to rent rather than buy.

The clothing rental market World, ****-****, in billions of US dollars Source: Business Wire The inflationary context has greatly encouraged the use of clothing rental. For example, on peer-to-peer platforms such as Pickle, which enable users to rent clothes directly from each other, a $***-$*** dress can be rented for just $**-$**, according to ...

1.3 The French clothing rental market

The clothing rental market is a segment of the second-hand market.

A phenomenon that originated in the United States, clothing rental has only been exported to France for a few years. A revolution in usage that is transforming the way we consume, but still a niche market in France.

We don't have figures based solely on clothing rental, but we can observe trends in sales of personal and household goods rental services whose NAF code is **.**Z, a subclass that includes the rental of all types of personal or household goods to households or businesses (***):

textiles, clothing and footwear furniture, pottery and glassware, kitchen and tableware, electrical appliances and household goods jewelry, musical instruments, stage props and costumes books, newspapers and magazines machines and equipment used by amateurs or for hobby purposes (***) flowers and plants electronic equipment for domestic use

growth in sales of personal and household goods rental France, ****-****, in billions of euros Source : INSEE NAF code: **.**Z

In France, some players, such as Habibliothèque have floundered. The start-up, launched back in ****, was placed in receivership in ****: Anahi Nguyen, the co-founder of the late Habibliothèque, sees another explanation: "In France, clothing rental is still a niche market ...

1.4 Confinement has accelerated the acceptance of rental as a way of consuming clothes

The confinement was conducive to tidying, sorting and becoming aware of clothes already owned. According to a Yougov survey carried out for eBay:

**% of French people took advantage of the lockdown to sort out their unused items, and almost half of those surveyed said they wanted to resell their items on dedicated websites, while **% said they had never opted for this solution before the lockdown

When it comes to the reasons why people resell their objects

for * in * French people, it's the desire to earn money for **% of those surveyed, it's the desire to make space in their own home for **%, it's a good way of combating waste and giving objects a second life

The health crisis, which has accelerated brands' transition towards more responsible fashion, has also helped to raise awareness on the consumer's side.as far as consumers are concerned, clothing rental is an ecological alternative - to combat waste - and an economic one that should not be overlooked.

2.1 Demand and its determinants

According to a study carried out by the Kantar institute in ****, only *% of French people said they had already tried clothing rental and *% had already subscribed to a rental platform. On the other hand, **% of those questioned said they were interested in this mode of consumption. But many specialists in the field say that garment rental will become increasingly popular, since it enables more responsible consumption while keeping a reasonable clothing budget.

Poll: why would you consider renting clothes? France, ****, in % Source: ****

For the French surveyed, the main reasons for renting clothes are above all special occasions (***).

According to FashionNetwork, clothing rental is still mainly associated with specific events (***) rather than everyday use. Consumers consulted by the agency in focus groups also mentioned the constraints associated with receiving and sending packages, as well as hygiene concerns, which is not the case for second-hand clothing.

The rise of the economy of functionality: use rather than possession

In France, the dissociation of access to objects and ownership is making headway in public opinion, with **% of French people subscribing to the idea that it's more important to be able to use a product than to own itObSoCo (***). Similarly **% of **-** year-olds are ready to ...

2.2 Ready-to-wear demand: characteristics and determinants

To better understand the demand for rental clothing, we need to look at the demand for ready-to-wear clothing, in order to draw up a profile of rental users.

Who's buying?

In ****, the average budget per woman fell by *%, from *** to *** euros, which is indicative of the deconsumerization of ready-to-wear that will be explored in greater depth in section *.*. Furthermore, the graph below shows that the age categories that spend the most on ready-to-wear for women are **-** year-olds, and to a lesser extent the under-**s and **-** year-olds. [***] Average ready-to-wear budget per woman and age group France, ****, in euros Source: FFAPAPF In ****, a new survey was published concerning budget, and it shows that women buy clothes more often (***). Age is always a factor influencing the average basket, which increases with the generations: it was €** for the under-**s and peaked at €** for the **-**s[***].

What do they buy?

Price is by far the most important criterion taken into account by French women when buying ready-to-wear, with **% of them considering it to be a determining factor. Quality is the second most important purchase criterion, with **% of those surveyed attaching importance to it. To a lesser extent, consumers pay attention to ...

2.3 Men's ready-to-wear demand: characteristics and determinants

Specific characteristics of male customers: utilitarian and prepared purchases

**% of men said they had already made a second-hand purchase in ****, a lower figure than for women (***), they are more likely to shop online. Thus, **% of men buy clothes online at least once a month, compared with **% of women. [***]

According to FashionNetwork, men's ready-to-wear sales grew by *.*% between the second quarter of **** and ****, but this translated into lower volumes purchased for a higher price paid. Post-pandemic, the men's ready-to-wear market grew much faster than the women's segment. In a study carried out for the French online retail federation (***) Observatory reports that sales of men's clothing rose by **.*% in the first * months of ****, compared with the same period in ****. These results are significantly higher than the *.*% increase in women's fashion, which declined less during the pandemic. Men bet on durable pieces and focus on garment quality. [***]

Only *% of French men claim to have a taste for shopping, and **% are not at all keen on it in ****. Men generally dislike shopping and spend less on clothes than women. [***] In fact, **% of men spend less than *** euros a year on clothes, and **% between *** and *** euros. Only *% spend more than *,*** euros a year on their ...

2.4 Millennials, a generation that consumes fashion differently

Second-hand for Gen Z

The second-hand market is particularly buoyed by younger consumers, notably Generation Z, whose purchasing decisions today are motivated by resale, in various forms. More than half of Gen Zers now prefer brands offering second-hand items in addition to new products (***), and **% are less inclined to buy a garment if it doesn't have good resale value. What's more, **% of Generation Z take into account the resale value of a garment before buying it. This shows just how ingrained this usage is in the habits of young consumers, who are looking not only for accessible, durable fashion pieces, but also for a way to increase their purchasing power.

While price remains an important motivation for Generation Z, as well as for millennials, these two committed generations also see second-hand as a way of reducing the environmental footprint of their wardrobes. More than half (***) know they can reduce their footprint individually. As a result, **% of Generation Z refuse to buy from unsustainable clothing brands and retailers, and **% have already bought or plan to buy second-hand clothes. [***]

Millennials are a growing target for brands: they represent almost **% of the world's population.

A McKinsey study attempts to highlight their expectations of luxury ...

2.5 The impact of inflation and CSR

Inflation

**% of women say they have shopped regularly in a store where clothing collections are plentiful, inexpensive and frequently renewed (***). [***]

In France, it would appear that women have an average of ** garments in their wardrobe, but use only two-thirds of them, according to a recent report. This finding shows that pleasure and impulse purchases continue to prevail over essential or replacement acquisitions [***].

In ****, **% of women said they bought less clothing than in the past, a percentage that drops to **% among men. The main reason cited was an insufficient budget to spend as much as before. Gildas Minvielle points out that inflation has not affected everyone in the same way: "Women have been more affected by inflation, and the drop in their purchasing power is more noticeable." He explains this by salaries not increasing at the same rate as inflation, and by the pay gap between men and women, which is around **%.[***]

Responsible clothing

The desire to consume clothing responsibly is one of the main motivations for clothing rental, so it's interesting to analyze the different consumer trends around environmental impact.

Although the French express a clear desire to consume more responsibly, price remains a decisive factor in their purchasing decisions ...

3.1 The forces at work

There are two distinct types of player in this market: brands that try their hand at rental, and platforms or sites that specialize in clothing rental, whether or not from one individual to another. Below is a non-exhaustive classification of the main players in the French clothing rental market:

3.2 Ready-to-wear brands enter the market

Ready-to-wear brands invest in the sector out of a concern for CSR

Among the strategic themes considered important by companies in the sector, social and environmental commitment ranks first, with all professionals surveyed considering it to be a crucial market issue. In ****, *% of the companies surveyed by the Kantar Institute said they offered a rental service, and *% said they were considering this solution. [***]

The implementation of a well-defined data strategy is also considered a necessary element for a ready-to-wear retailer. This refers to structuring and analyzing customer data before implementing concrete actions based on these analyses. Is this a strategic topic for you? France, ****, in Source: ****

The collaborative economy

While the global second-hand market in the fashion and luxury universe has reached ** billion euros in ****, according to Fevad and KPMG, the French market alone is estimated at * billion euros, including *.** billion for textiles alone. According to Roland Berger, France currently accounts for *% of the global second-hand fashion and luxury goods market, or around * billion euros. It's worth noting that one in two French people (***). Finally, seven out of ten French people prefer to buy a quality second-hand product rather than a first-price new one. [***]

Second-hand clothing today represents a significant financial ...

3.3 The rise of rental platforms

The economy is becoming "platformized", and clothing rental is one market affected by this trend:

While the global second-hand market is expected to reach $** billion by **** and overtake that of fast fashion, platforms based on the sharing economy have managed to pull their weight by encouraging alternative modes of consumption: rental platforms have thus developed :

brands and fashion industry players are put in contact with private individuals, like Rent The Runway's RTR model, which enables brands to make their pieces directly available to the platform and receive a percentage of the rental price between individuals, such as Fashion Lib, which connects fashionistas who rent each other their clothes

Business models are based on subscriptions, loans and uniqueness, all while emphasizing the circularity of the model, which reduces the negative impact of fashion on the environment.

The example of startup Le Closet

One French example is Le Closet, an online platform that also operates on a subscription basis: for ** euros a month with no commitment (***).

Interestingly, there is a "coup de coeur" effect, with some customers renting certain garments several times in a row. A garment is rented an average of ** times before being purchased by a customer, in **% of cases at ...

3.4 The challenge of achieving profitability

One of France's first clothing rental sites, L'Habibliothèque, launched in ****, went into receivership in ****. Similarly, the Les Cachotières site announced it was ceasing operations two months ago. Specializing since **** in the rental of eveningwear between individuals, Les Cachotières had diversified its offering by launching "Les Cachotières For Brands" in February ****, a service enabling fashion brands to offer items for rent on the platform, attracting brands such as Sandro. Since ****, the site also offered a white label service inaugurated by Ba&sh.

The clothing rental business requires considerable investment, as it relies not only on fashion, but also on logistics, technology and data, necessitating specific expertise in these areas. The company was hit hard by the Covid-** pandemic, resulting in an almost complete shutdown of the business for ** months, followed byinflation, which considerably increased costs, particularly those linked to transport, a very important item in their expenses.

With sales of $***.* million (***) after ** years in business. Although this deficit was reduced in ****, the improvement is mainly the result of a restructuring plan including a net reduction in headcount of around **%. [***]

Launched in ****, Le Closet was profitable from **** to ****. However, it is currently no longer profitable due to investment in ...

4.1. Offer typology

Rental platforms have an offer that can be segmented in a number of ways.

By target

by gender: men or women by age: adult or child

By product

by function: everyday wear, special occasion wear, maternity wear, ski wear by type: dress, shoes, accessories, tops by range: affordable, high-end, luxury

4.2 Clothing rental covers all ranges

Low-end ready-to-wear

Kiabi is now offering to rent clothes instead of buying them.

For * items rented, the customer pays ** euros per month, for **, the amount rises to ** euros, for ** items, ** euros, and finally the price peaks at ** euros for ** rented products. All in-store sectors (***) are covered

Daily rental

In ****, Le Closet launched a multi-brand rental platform, Le Closet Unique, designed for special occasions such as parties, birthdays, weddings and so on. Among more than *,*** pieces from premium brands such as Bérénice, Sézane, Maje, ba&sh, Claudie Pierlot, The Kooples, Vanessa Bruno, and others. "Nevertheless, as with subscription, customers are looking for original items rather than well-known brands," notes Paul Zeinoun.

The customer chooses a model, then selects a rental date and location. Delivered to the customer's home, the outfit is available for a minimum of * days, from €** per day (***). Delivery and dry-cleaning are included in the price. [***]

Companies specializing in high-end rentals.

Many companies have decided to ride the rental wave by developing various business models based on single items or subscriptions.

Une Robe Un Soir offers *-day rentals of designer dresses for an average price of €***, Les Cachotières offers a rental service between private individuals with ...

4.3 Subscription a popular payment method for clothing rental

The subscription-based business model enables players to secure recurring revenues: this keeps the company running smoothly, while allowing them to work on building up their stock.

The principle closely resembles other subscription offers from other sectors. In exchange for a monthly financial contribution, subscribers can refine their profile to target their tastes. Each month, or every two months depending on the brand, the company sends them one or more pieces, which they must return by a given date.

Source: ****

Subscription and box prices have risen sharply in recent years, with Le Closet, for example, increasing its subscription from €** in **** to €** in ****. Today, almost all brands seem to offer non-subscription rental, per garment.

5.1 Regulations

The law on the fight against waste and the circular economy

Law no. ****-*** of February ** introduced or reinforced several rules relating to waste and the circular economy. Summarized in a study by the French Federation of Women's Ready-to-Wear, the main measures concerning ready-to-wear are as follows:

Ban on the destruction of unsold non-food items

As of January *, ****,Article ** has introduced an obligation to reuse or recycle unsold new clothing, provided that this does not pose a threat to safety, health or sustainable development.

Strengthening the bonus-malus system

Marketers who design or import their products in an environmentally-friendly way (***) benefit from a financial bonus. Conversely, retailers who fail to do so will be subject to financial penalties. [***]

Reinforced labelling

**% of French people want to consume better and differently. To meet this demand, the law requires marketers to communicate with consumers. [***]

As of January *, ****, the environmental qualities and characteristics of products must be visible at the time of purchase

In addition, environmental or environmental and social labelling will be tested and then made compulsory, as a priority, for the clothing textile sector, following the entry into force of a provision adopted by the French government.the European Commission has launched the ...

6.1 Market segmentation

• Ba&sh
• SMCP Groupe (Maje)
• Ralph Lauren
• Le Closet
• Rent The Runway
• La Fashion Lib
• My Golden Closet
• Get Prête
• Renaisa
• Rent Club Paris
• Bocage
• Possible
• Patatam - Rediv
• Ree-See
• PVH