Luxury rentals are bringing designer products to youngsters at an affordable price. And, propelled by consumption patterns and perceptions, many Indians are ‘willing to share’ their high-end fashion
For many, it may be hard to understand why some people would be willing to wait for a Hermes Birkin for weeks and months. But there is certainly a value that perceived luxury brings to the table. Luxury is difficult to define. In addition to price, it includes factors such as craftsmanship, exclusivity, and heritage.
And making this luxury accessible is the growing market of luxury rentals, pegged to expand at a CAGR of 11% from 2021 to 2031 globally. With an increasing number of consumers looking for high-end fashion without paying a hefty price tag, luxury rental services have also taken over the block in India. However, this business has been around for a while, although it has certainly picked up pace in the last few years.
India has seen a significant growth in the luxury rental market in the fashion industry
“I had attended a wedding in 2009, and after the event, I was riddled by what I would do with all the clothes I had bought. And I realised that this was the concern of many people. Our business was born out of my pain point of storing excess clothing,” shares Neeraj Wadhera, who founded Wrapd, a luxury rental boutique with six stores across India, in 2009. Since then, many players have entered the luxury rental space in India that cater for products such as high-end bags, shoes, clothes and more, often at a fraction of the cost of the product.
While Wrapd started with an aim to address storage, Aanchal Saini, Ceo of Flyrobe, founded Rent it Bae in 2016 to address a simple problem that youngsters faced. “We often have a closet full of clothes but nothing to wear. Having worn every outfit in our closet at least once, we never have anything new to wear every time we go out. Hence, we began the business with a narrow approach: bringing the latest fashion to people’s doorstep without spending much money. As a result, we established Rent it Bae, in 2016 as a luxury fashion rental service that rents ethnic, western, and accessories from designer labels and brands at a fraction of the cost,” she expresses. In 2019, they acquired Flyrobe, India’s largest fashion rental company, and today offer thousands of options from designers such as Sabyasachi and Anamika Khanna.
Flyrobe offers thousands of options from designers such as Sabyasachi and Anamika Khanna
But what is driving the luxury rental market in India today? The credit essentially goes to Gen Z and millennial consumers and the growing popularity of luxury brands in India. Barkha Bhatia, who works with an MNC in Noida, chose to get her outfit from a rental marketplace in Delhi, and shares, “In this age of social media, I did want to be seen in a new outfit for a friend’s wedding, but I also wanted to be more conscious of my purchase, and limit my environmental footprint. I believe renting was a sustainable and accessible option and allowed me to diversify my wardrobe without burning a hole in my pocket.”
Whenever we think of fashion, we perceive it to be women-centric. However, the luxury rental market has seen men partake equally. “For each bridal lehenga we rent out, five sherwanis are being rented by men. The reason is simple – most men are practical about their wedding attire and understand that they will probably never re-wear it. Women are more likely to be sentimental about their outfits; hence they choose to buy,” Wadhera explains.
Experts also suggest that India’s fashion industry’s growing luxury rental market indicates a more significant trend towards more sustainable and responsible consumption. However, Wadhera disagrees with the sustainability aspect of the rental market. “For most people who rent a luxury item, money is not the issue; storage is. People who wish to wear a Sabyasachi will probably buy one because a rental might not give them the same emotional and heritage value. Additionally, people who rent clothes rarely do so from the perspective of the planet. They do it for variety and convenience,” she adds.
Rental platforms offer luxury clothes, handbags, shoes and more for a fraction of the original cost of the product
Many issues still plague the rental business model, including inventory problems since fashion requires constant upgradation, transportation, and ensuring authenticity and quality of rentals over a more extended period. Additionally, cheaper replicas eat away at the business, with bustling lanes of Delhi offering second-hand copies at affordable prices. Nevertheless, by promoting the ‘reduce, reuse, recycle’ mantra at the forefront of the fashion industry, there is a real possibility that luxury rentals can help combat the overconsumption crisis by offering a more cost-effective alternative to traditional retail.
Yet, the conversation on rentals begs this question: Does renting a Gucci dress bring the same value as owning it? Simply put, does luxury rental make a brand less ‘luxury’?
Saini disagrees. “Luxury rentals increase exposure and brand awareness for brands. By making their products more accessible through rental services, luxury brands can introduce their products to consumers who may not have been able to afford them otherwise, thus expanding their customer base. Additionally, luxury rentals can serve as a way for consumers to “try before they buy,” potentially leading to increased sales of full-priced items in the long run. Overall, luxury rentals can be a win-win situation for luxury brands and consumers alike.”
