Entering the clothing rental market? It is rumored that ASOS has partnered with rental platform Hirestreet!

ASOS partners with Hirestreet for clothing rental market

BusinessDialogue learned that ASOS has partnered with rental platform Hirestreet this week, according to reports. Alice Price, a clothing analyst at GlobalData, stated her opinion: “The partnership between ASOS and Hirestreet for rental is a wise move for this fashion giant, as its extensive range of occasionwear products is unparalleled, making it a strong contender in the rental market.”

For this retailer, it has been a challenging year, with UK market revenue for the six months leading up to February 28, 2023, falling by 10.3%. This rental plan will help to increase its relevance to shoppers, who are becoming more aware of the cost and environmental impact of buying new clothes. It will also help to repair some of the reputation damage caused by ‘Greenwashing’ claims against retailers in 2022.

“The UK rental market has thrived in recent years, and is expected to grow by 163.9% between 2022 and 2026. Nevertheless, clothing rental still accounts for only a small proportion of total clothing expenditure, with a predicted value of only £229.9m in 2023. As a result, ASOS needs to do more work to truly benefit from the demand for sustainable clothing and increase its reputation. It should first address the problem at the source, adopt more environmentally friendly production methods, and effectively market these methods to raise awareness and gain consumer trust.”

BusinessDialogue understands that ASOS has stated it will not overlook the growing resale market. ASOS Marketplace is also selling some second-hand goods, but compared to resale platforms like Vinted, the clothing prices are higher, even equivalent to buying new items, as it mainly sells styles from independent boutique stores. The products also often have a vintage feel, which limits their attractiveness to everyday ASOS shoppers to some extent. Therefore, analysts suggest that ASOS should take inspiration from competitors like PrettyLittleThing and consider launching a dedicated C2C resale app to fully leverage the second-hand market and attract more environmentally conscious consumers.”

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