Rental clothing is being pushed as a possible remedy to the pollution generated by the fashion industry.
Researchers in Sweden are examining business models to try to find a formula that is sustainable and profitable.
Chalmers University of Technology study lead Frida Lind said so far business models around rental clothing had not been particularly successful.
“Many people have clothes hanging in the closet that are rarely or never used,” Professor Lind said.
“Renting clothes can extend the use of each garment and thus contribute to more sustainable consumption.”
The study report said that the fashion industry was one of the most polluting industries, accounting for up to 10 percent of global greenhouse gas emissions globally.
Rental clothing business models studied for the research included:
- Membership model – customers become members and can then borrow clothes for a certain period of time, similar to a library.
- Subscription model – customers pay a monthly fee to rent a certain number of garments.
- Individual rental model – the company provides specific types of clothing to rent out, often in combination with other equipment like ski gear.
The study found the best chance of success came through niche markets, such as specific sportswear.
The researchers analysed nine Swedish companies that had either tried and failed or were in the ongoing process of creating a “sustainable and desirable” clothes rental company.
“What struck us was that it seemed so difficult for them to make their business profitable. Several had to end their investments for various reasons,” Professor Lind said.
“Renting out clothes involves many steps where each item of clothing needs to be handled and inspected before it can be rented out again, which takes time.
“Companies also struggled with high costs for warehousing, logistics and laundry, for example. Especially for the subscription models, there were also difficulties in obtaining venture capital to be able to survive financially through the first phase of building the company.”
Companies that focused on a specific market, such as outdoor clothing, tended to be more successful.
“They seem to have found their niche and seen that there is a specific need that the customer is willing to pay for each time they need to use that type of clothing,” says Professor Lind said.
“Our study can be an important contribution to the fashion industry’s sustainability transition, as it shows the possibilities of new business models in this industry.”
The full report is on the Chambers University of Technology website.
