BULETIN TEXTILE.COM/ Jakarta – The clothing rental business will decline in growth compared to its initial emergence some time ago. However, due to the expansion of new areas that can become potential markets, the clothing rental business is expected to continue to grow by double digits. Besides that, consumers are becoming increasingly comfortable with renting clothes to meet their clothing needs.
In 2022 the clothing rental business is US$ 4.9 billion with a growth rate in the period 2022-2026 of 19%. This market growth is driven by consumer awareness of environmental sustainability because they realize the magnitude of the environmental impact due to the increasingly large consumption patterns of fast fashion culture.
Asia Pacific is a region that continues to grow in clothing rental because residents are used to renting traditional custom clothing and party attire, especially in the East Asia region.
This type of clothing for parties is the main product that is rented out, because consumers only use it a few times a year. In Japan and South Korea, renting casual clothing has been a habit for the people for a long time and has continued to this day.
Apart from Asia Pacific, which is the highest market in 2022, including Europe, America, the Middle East and Africa which are developing into good markets for clothing rental. The clothing rental market in the European Region declined from 2016 to 2022, especially when the Covid-19 pandemic hit the world. But for the period 2022-2026 this region is estimated to have the highest growth potential. Well-known companies in the clothing rental business include: Rent the Runway, Hirestreet, HUUR, Circos, Moss Bros and airCloset.
In 2029 Rent the Runway was founded to coincide with the time of the recession in the United States, helping female consumers who need luxury party clothes that they only wear occasionally to avoid credit card debt for allocating purchase costs.
Hirestreet was founded in 2017. Hirestreet rents out premium and luxurious clothing that usually has to be purchased at high prices. By renting clothes, female consumers can afford these clothes at low costs.
Asia Pacific and North America are pioneering markets for clothing rental. Currently Europe is experiencing a major increase in the clothing rental business and it is estimated that Eastern Europe will grow with great potential due to economic growth as well as the rise of online clothing rental platforms. (Globaldata)
THE UNITED STATES
In order to stabilize the cotton business, the United States House of Representatives and Senate approved legislation for assistance to their cotton farmers. The National Cotton Council (NCC) is very appreciative of the assistance included in the FY23 omnibus package, including a value of US3.74 billion for the cotton farming sector.
Assistance is given to cotton farmers whose yields have decreased in terms of cotton quality and crop size due to climate disturbances such as drought, forest fires, storms, high heat, high humidity, exposure to smoke and others that occurred last year.
This aid package provides a value of US$100 million to the US Department of Agriculture (USDA) to provide reimbursement to cotton traders who experience losses in their business. The amount of aid is US$ 15.45 million for efforts to eradicate pests, research costs for improving the quality of cotton and cotton genetics.
Assistance is also directed at improving national agricultural statistics services, so that USDA can continue to work closely with US cotton industry stakeholders to obtain broader and more effective information coverage.
The NCC expressed gratitude that Congress passed the law that is needed today. This assistance is considered to be able to stabilize the cotton sector because many cotton farmers have suffered losses due to the extreme drought that occurred recently. Besides that, to overcome other bad weather factors as well as business losses experienced by cotton traders due to a decrease in transactions during the pandemic.
Other provisions contained in the Bill include:
- Growing Climate Solution Act: directs the USDA to register entities that provide technical assistance to farmers, livestock and forestry agencies that have contributed to the carbon fund.
- Pesticide Registration Improvement Act (PRIA 5) Reauthorization: The re-registration of pesticides and the cost-of-use evaluation process administered by the EPA.This is done to support a more predictable regulatory process, provide resources to carry out safety training and other efforts to make pesticide use safer and more effective.
- Pesticide Registration Review Deadline Extension: Extension of the review deadline for the Environmental Protection Agency (EPA) to register all registered pesticide products from October 1, 2017. The EPA can continue registration of pesticides until October 1, 2026. (Just Style)
Damteks, a Textile factory in Turkey, produces recycled yarn. The company offers textile goods with attention to environmental sustainability. It sees that there is a demand from consumers in the market that they really value textile products made from recycled yarns and the results of their market research state that the best composition is yarn with 30% recycled fiber and 70% virgin fiber.
To ensure that consumers get textile goods according to their requests, Damteks works with Haelixa, a company in Switzerland that produces a liquid for detecting the presence of recycled fiber. This DNA-based detection fluid is sprayed during the production process of recycled fiber in a spinning mill.
In 2023 the expert team from Haelixa visited the Damteks factory to start their partnership process. The Haelixa team conducts a thorough factory inspection and installs special equipment to spray the detection liquid on the fiber before it is spun into yarn. This spraying equipment is engineered in such a way that it is compatible with spinning production machines.
The Damteks leadership stated that market demands for a sustainable process had caused us to be proactive in designing the production process. It is believed that the production of yarn with a mixture of recycled fibers has carried out a production process that is responsible for the future of this planet.
The CEO and founder of Haelixa stated that there is no other way for textile producers than to adapt to consumer demand and government regulations, which emphasize efforts to maintain environmental sustainability. By spraying this DNA-based detection fluid from Haelixa, products on the market in the form of threads, fabrics and even pieces of clothing can be detected for recycled fibers.
The online apparel market in 2020 was $465.8 billion and is expected to grow by 11% annually. These online marketplaces are located in the following regions: Asia-Pacific, Europe, America and the Middle East and Africa.
The online American and European clothing markets will decline in large numbers due to market saturation by 2025. What is expected to have greater growth potential is Eastern Europe and Latin America.
The online clothing market is in the United States, United Kingdom, Germany, China, Japan, South Korea, France, Italy, India, Brazil, Saudi Arabia, Bulgaria, Argentina, Chile, UAE, Malaysia, India, Peru, Philippines and Turkey.
Textile goods traded in this online clothing market consist of apparel, shoes and other equipment. The portion of shoes will continue to grow considering the latest technology has been found which makes it possible for consumers to choose the right size before ordering online.
The players in this online marketplace include: ASOS, Boohoo Group, Zalando, Amazon, Next, Shein , Nike and Uniqlo. Starters like Amazon and Shein have respectively had the largest share of the online marketplace in the last year due to their superior positioning and the wide variety of products they offer shoppers. Amazon’s gift of Prime Membership to its buyers has increased sales through regular purchases by those customers.
Nike experienced the strongest online apparel market growth of many of the other multi-channel players in the top 10. This is thanks to their investment in their digital proposition such as: apps used, Nike Plus membership scheme, fast sales service and strong engagement across all social media platforms they use.
Apparel Online Market Summary
(Red B-Teks/Indra I)