January 16, 2017 Online apparel and accessory rental services are proliferating. DEEP DIVE: Apparel rental models allow customers to borrow items for a set time period, typically at a meaningful discount to the products’ Millennial retail price. Millennials appear to be driving the growth of the apparel rental segment, and three key millennial lifestyle trends Lifestyles Drive are underpinning the segment’s development: 1) The “Instagram effect”—or the desire to be perceived on Growth in Apparel social media as living a fun, interesting, experience-rich life—combined with celebrity culture and the selfie Rental phenomenon necessitate that millennials have an ever- changing, on-trend wardrobe. Apparel rental services allow consumers to wear a changing selection of major brands without having to spend as much as they would if they bought the items outright. 2) Millennials value experiences over acquiring products. Apparel rentals allow millennials to wear high-end brands at lower cost, and so funnel more of their spending toward services and leisure experiences. Meanwhile, the low Deborah Weinswig priority that millennials attach to owning products makes renting apparel a more viable option for them. Managing Director, Fung Global Retail & Technology 3) Millennials are considered budget conscious, so renting
[email protected] items makes sense for them, especially when it comes to US: 917.655.6790 HK: 852.6119.1779 high-worth and expensive items that are used only CN: 86.186.1420.3016 occasionally. Deborah Weinswig, Managing Director, Fung Global Retail & Technology
[email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 1 Copyright © 2017 The Fung Group.