Victoria: A decade ago, Larissa Manley launched Rent a Dress while studying. Today, the platform is part of a booming rental trend in Australia, driven by sustainability and the potential for significant income through sharing personal wardrobes, aligning with growing environmental awareness in the fashion industry.
In 2014, a 21-year-old university student named Larissa Manley found herself in a financial pinch, with only $300 in her bank account and seeking a quick way to generate income while studying in Victoria, Australia. Rather than letting go of her cherished dresses worn to formal events, she conceived the idea of renting them out. “I thought, why not try renting them?” Manley recounted. She grabbed the Instagram handle @rentadressau, began sharing photographs of her garments, and with her friends quickly engaging in the idea, a thriving business was born.
Now, nearly a decade later, Rent a Dress boasts a significant following of 38,000 on Instagram. This platform is part of a growing trend in Australia, where numerous peer-to-peer rental services have emerged, allowing users not only to rent clothing but also to monetise their personal wardrobes. Kellie Hush, the chief brand and strategy officer of another rental service known as The Volte, which began in 2017, remarked, “We have over 260 users that earn between $50,000 up to $200,000 per year,” demonstrating the substantial potential for income in this sector.
The rise of rental business models is underpinned by a broader movement towards sustainability in the fashion industry. The Ellen MacArthur Foundation, which promotes circular economic principles, reported that rental, resale, and repair models were valued at over US$73 billion in 2019. Rental systems, according to foundation representative Jules Lennon, play a pivotal role in promoting sustainability as they extend the life of garments, encourage thoughtful design, and help divert clothing from landfills. Lennon referenced a study indicating that renting a cotton dress could lead to a 41% reduction in its carbon emissions.
For individuals looking to tap into this market, the process begins by selecting a suitable platform and creating an account akin to how one might use Airbnb for accommodation. Platforms like Air Closet, The Volte, and Rent a Dress generally charge around 15% in commission on the rental price, excluding shipping. Users are encouraged to take clear, well-lit photographs of their garments, avoiding images that feature multiple individuals or items laid flat.
Once a rental is booked, the lender receives details on the transaction, including the duration and shipping arrangements. Most platforms facilitate the rental process through postal services, although some provide options for local pick-up or courier services. It becomes the lender’s responsibility to clean the garment before each rental, and penalties may apply for late returns or non-returns, as outlined in each platform’s terms.
In terms of demand, special occasion attire, such as dresses for weddings and cocktail parties, is particularly sought after, alongside maternity wear, which is gaining popularity on these platforms. Nicole Shiraz, the founder and CEO of Air Closet, noted that users often prefer to rent items they intend to wear infrequently. “Our users love to rent items they know they only want to wear once and probably never again,” she stated.
The choice of which garments to rent out is crucial, and industry experts advise potential lenders to stay updated on trends while also investing in timeless pieces. Bernadette Olivier, co-founder of The Volte, advised new lenders to focus on luxury items and investment pieces in good condition, highlighting that items from established brands often see repeated rentals over the years.
Nevertheless, experts warn against renting out garments with sentimental value. Shiraz mentioned the importance of considering the potential emotional impact of a damaged item, stating, “Make sure you don’t rent out items that have sentimental value because you might part with that item more than you might think.”
As the rental trend continues to gain momentum, the Ellen MacArthur Foundation predicts that these circular business models could be worth US$700 billion by the decade’s end, significantly impacting the fashion industry’s carbon footprint. Companies are increasingly leveraging technology to streamline the rental experience; for instance, The Volte has recently introduced a feature that allows customers to instantly list newly purchased items for rental. Meanwhile, Air Closet is working on an AI-integrated virtual try-on feature, aiming to combine the experience of fashion rental with elements of sustainable practices and financial independence.
With platforms like Rent a Dress and The Volte leading the way, the burgeoning fashion rental industry offers individuals opportunities to profit while contributing to a more sustainable future.
Source: Noah Wire Services
