Luxury rental services gaining popularity in India
08 March 2023, Mumbai
Luxury rental services are becoming increasingly popular in India, as more consumers look to access high-end fashion without paying the hefty price tag.
The luxury rental market is set to expand at a CAGR of 11 per cent globally from 2021 to 2031, with many players entering the market to cater for products such as high-end bags, shoes, clothes, and more at a fraction of the cost of the product.
The luxury rental market is driven by Gen Z and millennial consumers and the growing popularity of luxury brands in India. The market is also seeing equal participation from men, who are practical about their wedding attire and understand they will probably never re-wear it.
However, the rental business model still faces inventory problems, transportation issues, and the need to ensure authenticity and quality of rentals over an extended period. Cheaper replicas also eat away at the business, with bustling lanes of Delhi offering second-hand copies at affordable prices.
Despite these challenges, luxury rentals can help combat the overconsumption crisis by offering a more cost-effective alternative to traditional retail. Additionally, the luxury rentals can also serve as a way for consumers to "try before they buy," potentially leading to increased sales of full-priced items in the long run.
