In 2025, the fashion industry continues to grapple with its reputation as one of the most polluting sectors worldwide. Accounting for up to 10% of global greenhouse gas emissions, the industry's environmental impact is undeniable. However, innovative solutions are emerging to transform the way we consume fashion. One such solution is clothing rental services, a concept that is gaining traction as a sustainable alternative to fast fashion. Researchers from Chalmers University of Technology, the University of Borås, and the research institute RISE have delved into the potential of this model, analyzing its viability and the business models that could make it a success.
A Closer Look at the Study
The study focuses on nine Swedish companies that have either successfully implemented or attempted to create sustainable clothing rental services. By examining these cases, the researchers identified key insights into how rental models can contribute to a more sustainable fashion industry. The findings highlight three primary business models that are shaping the future of clothing rentals.
Three Promising Business Models for Clothing Rentals
The researchers identified three distinct business models that are being tested by companies in the clothing rental space. Each model offers unique advantages and challenges, but all share the common goal of reducing waste and promoting sustainable consumption.
1. The Membership Model
The membership model operates much like a library for clothes. Customers pay a fee to become members and gain access to a wardrobe they can borrow for a specific period. This model often attracts enthusiasts of sustainable fashion who are passionate about reducing their environmental footprint. The membership model thrives on a sense of community and shared responsibility for the garments.
2. The Subscription Model
In the subscription model, customers pay a monthly fee to rent a set number of garments. This approach is appealing to those who want to keep their wardrobes fresh without the commitment of purchasing new clothes. Startups operating under this model are focusing on scaling their operations and attracting venture capital to expand their reach.
3. The Individual Rental Model
The individual rental model offers a more flexible approach, where customers can rent specific types of clothing for particular occasions. This model often pairs clothing rentals with other equipment, such as outdoor gear or accessories, to create a one-stop solution for consumers. The individual rental model is particularly popular for special events or seasonal needs.
The Role of Stakeholder Collaboration
A key finding from the study is the importance of collaboration between rental companies and their stakeholders. Companies that work closely with clothing manufacturers and suppliers tend to perform better. These partnerships allow rental services to gather valuable feedback on popular styles and garment quality, enabling them to refine their offerings and improve customer satisfaction.
Designers with a strong focus on sustainability are particularly valuable partners in this context. By working together, rental companies and designers can create garments that are not only stylish but also durable and environmentally friendly. This collaboration is essential for building a circular fashion system where clothes are designed to be reused and recycled.
Environmental Impact and the Path Forward
While the study did not specifically measure the environmental impact of clothing rental models, previous research provides valuable insights. It is estimated that 70% of the climate impact of clothing comes from the production phase, while 22% is attributed to transportation related to shopping trips. By extending the life of garments through rentals, the overall environmental footprint of the fashion industry can be significantly reduced.
Additionally, rental models can help reduce the demand for new clothes, which is a major driver of pollution in the fashion industry. By promoting the reuse of existing garments, rental services can help shift consumer behavior toward more sustainable practices.
Recommendations for a Successful Clothing Rental Business
Based on their findings, the researchers have outlined several recommendations for companies looking to enter the clothing rental market. These guidelines provide a roadmap for building a sustainable and profitable business in this emerging sector.
- Focus on Niche Markets: Identify specific target groups and product types where there is a clear need for rental services. This could include formal wear, outdoor gear, or maternity clothing.
- Develop Strategic Partnerships: Collaborate with suppliers and manufacturers to gather feedback and improve the quality of rented garments. These partnerships can also help in designing clothes that are better suited for rental services.
- Consider Logistics and Transport: From the outset, plan for efficient logistics and transportation systems. This is crucial for scaling the business and ensuring that the rental model remains sustainable as it grows.
The Future of Sustainable Fashion
As the world becomes increasingly aware of the environmental impact of fast fashion, consumers are seeking alternatives that align with their values. Clothing rental services offer a compelling solution, combining convenience, affordability, and sustainability. By embracing innovative business models and fostering collaboration with stakeholders, the fashion industry can move closer to a more circular and sustainable future.
In 2025, the rise of clothing rental services represents a significant shift in how we consume fashion. As more companies explore this model, we can expect to see a reduction in waste, a decrease in greenhouse gas emissions, and a greater emphasis on quality and durability in clothing design. The future of fashion is not just about style—it's about making a positive impact on the planet.
At Fazbuy, we are committed to supporting sustainable fashion initiatives and providing our readers with the latest insights on how to make informed, eco-friendly choices. Whether you're considering a clothing rental service or looking for other ways to reduce your fashion footprint, we invite you to join us on this journey toward a greener future.
