"I have too many clothes!" said no woman ever.
Do you get bored of repeating your outfits yet do not wish to splurge on new clothes? Ever heard of a subscription based clothing rental service for woman? Well, I'm glad to let you know that it is happening in Singapore! Style Theory is a fashion-based subscription in Singapore that allows you to rent unlimited designer clothing at $129/month! Limited closet space is a real issue amongst females and Style Theory aims to fill that gap.
However, will the sharing economy work for the fashion industry?
Firstly, a fashion rental company must take on the role as the owner - purchasing and holding all the stock they rent out. Moreover, clothings require maintenance between uses such as dry cleaning and mending which creates operational challenges and increases cost for the business. Logistics are the largest barrier for fashion rental businesses to overcome. Due to style and fit variations, they need to offer customers a wider range of products as compared to other sharing economy sectors. Furthermore, inventory turnover is much higher in fashion as they have to keep up with trends. Comparing to Uber and Airbnb which are just software programmes who connect people to do the exchange of third-party controlled goods on their own, the fashion sharing economy is less attractive to venture into due to the high overheads.
Should the fashion sharing economy thrive, it will have an effect on traditional retailers. Fast fashion businesses could be affected as customers use rental services to borrow high quality on-trend seasonal pieces rather than buy cheaper versions on the high street. Consumers will continue to buy everyday staples like a pair of jeans or a leather jacket but choose to rent occasion-wear and statement pieces with limited wardrobe lifespan.
One major motive for the recent rise of sharing economy is the new consumer preferences of millennials. On a more positive note, fashion sharing economy promotes the idea of sustainable fashion, appealing to millennials. According to a study by Nielson in 2018, millennials are willing to pay more for sustainable products or products from a sustainable brand. By utilising sharing economy platforms, it is seen to be convenient, flexible and affordable for them.
With millennials becoming the biggest consumer group globally, retail brands that are able to tackle the logistic factor can consider convincing sustainability-hungry millennials to support the idea of fashion sharing for this particular sector to flourish.