Fashion Recommerce: Clothing Rental and Resale are Helping to Address Problems of Clothing Waste

Apparel recommerce is gaining share from traditional online apparel retailing as Gen Z consumers embrace new shopping formats--such as resale and rental--which offer affordability, accessibility, sustainability and social interaction. In addition, retailers are being driven to adopt rental and resale business models faster than ever before as a result of pressures by apparel industry professionals, environmental organisations and governments to contribute to the circular economy and solve the problem of clothing waste.

However, brands face a number of major challenges in entering the resale or rental markets because doing so requires significant investment, and the reselling and renting of products pose a complex logistical challenge.

This report provides an overview of the recommerce market and includes profiles of three pioneers in recommerce, namely Depop, Rent the Runway, and thredUP. Also, it considers a number of solutions to the challenges faced by brands in adopting rental and resale formats, including employing third-party companies which offer resale as a service (RAAS).