PARTNERSHIPS | COMMUNITY | PODCAST | FRIENDS
Gen Z Rents Out Their Closet
Rent yourself // Illustration by Kate Walker
Gen Z is increasingly renting clothes they need instead of buying them outright.
Why It Hits: The clothing rental market is already valued at roughly $2.6 billion and is expected to hit $6 billion in the next decade, per research firm Future Market Insights. A continued shift toward renting — which gives consumers access to quality items at a discount — could have significant ramifications for the retail market and consumer brands.
Behind The Leases: Buying something is too big a commitment these days… so rental platforms are taking off.
Nuuly, owned by the parent company of Urban Outfitters, has 400,000 active monthly subscribers and over 230,000 clothing items available.
Pickle, another clothing rental platform, saw rental demand soar 500% in Miami and 195% in LA this year. 60% of its users are Gen Z, and 40% are millennials.
BNTO, a subscription site to rent new clothes, raised a $15 million Series A this year in a round led by Notable.
Rent the Runway, the OG in the space, has turned around its falling COVID-era demand and is now posting an $80 million-revenue quarter.
Final Transaction: Consumer-insights research firm GWI found back in 2022 that one in five Americans would rather rent a piece of clothing for a one-off event than purchase it outright… and all signs show that percentage has significantly grown. That’s been fueled by a de-influencing trend online that supports spending less money and being more sustainable. Plus, a Gen Z habit of secondhand shopping and thrifting has naturally evolved into a rental mindset. People are looking for ways to save money and still look good.
That’s also great news for people wanting to make passive income. Isabella De Murguia, a 27-year-old who rents her clothes on Pickle, has already made over $25,000 this year renting out her closet.
The Future: Over the next decade, most young people may be able to fit everything they own into a literal suitcase… which will make moving between smaller and smaller apartments easier.
PARTNERSHIPS | COMMUNITY | PODCAST | FRIENDS
Today’s email was written by David Vendrell.
Edited by Nick Comney. Polled and Copy-edited by Kait Cunniff.
Published by Darline Salazar.