RENT, SUBSCRIBE, SUSTAIN: THE FASHION REVOLUTION SHAPING TOMORROW’S WARDROBE

Ms Shweta Sheth

Post Graduate Academic Scholar, Department of Fashion Management Studies, National Institute of Fashion Technology, Ministry Of textiles, Govt of India, Daman Campus.

Dr Vidhu Sekhar P

Assistant Professor,  Department of Fashion Management Studies,National Institute of Fashion Technology, Ministry Of textiles, Govt of India, Daman Campus.

ABSTRACT: The fashion industry is undergoing a seismic shift towards sustainability, propelled by the emergence of fashion-as-a-service models, namely subscription and rental systems. These innovative business models are revolutionizing the way consumers engage with fashion, offering a more circular and environmentally conscious alternative to traditional ownership. By providing consumers with access to curated clothing collections through regular deliveries or rentals, these services cater to the growing demand for convenience, flexibility, and eco-friendliness. This study delves into the rise of fashion as a service, examining the transformative impact of subscription and rental models on the fashion ecosystem. Through an in-depth analysis of consumer behavior, market trends, and environmental implications, the research highlights the potential of these models to reduce waste, promote garment longevity, and foster a culture of sharing and reuse. The paper also explores the crucial role of digital platforms in facilitating consumer engagement, streamlining logistics, and driving market growth, while addressing the challenges these models face in terms of scalability, profitability, and customer retention. Ultimately, the study underscores the imperative for innovation in business strategies as the fashion industry transitions towards a more sustainable, shared, and circular economy.

Keywords: Fashion-as-a-service, Subscription models, Rental models, Sustainable fashion, Consumer behaviour, Eco-friendly fashion, Digital platforms, Scalability, Innovation in business strategies, 

• INTRODUCTION: The research paper explores the significant role of fashion-as-a-service models, particularly subscription and rental systems, in promoting sustainability within the fashion industry. As the global demand for environmentally conscious and sustainable practices grows, these innovative business models provide consumers with an alternative to traditional clothing ownership. The shift to fashion-as-a-service, encompassing subscription-based clothing rentals and curated fashion services, is driven by consumer preferences for flexibility, convenience, and eco-friendly options. Through these models, consumers have access to fashion without the commitment of ownership, reducing waste and promoting the reuse of garments. This paper delves into the dynamics of this emerging market, examining consumer behaviour, preferences, and the environmental benefits of reducing fast fashion consumption. The role of digital platforms in facilitating these services is also highlighted, alongside the challenges companies face in scalability, profitability, and maintaining customer loyalty in this rapidly evolving sector. The study contributes to understanding how fashion-as-a-service is reshaping the industry and accelerating the transition toward a more sustainable and circular economy.

• RESEARCH OBJECTIVES 

• Assess the Impact of Fashion-as-a-Service Models: To evaluate the influence of subscription and rental models on consumer purchasing behaviour and the broader fashion industry, with a focus on sustainability.

• Examine Environmental Implications: To investigate the role of fashion-as-a-service in minimizing textile waste, extending the lifecycle of garments, and supporting the principles of a circular economy.
• Analyse Consumer Adoption Drivers: To identify and understand the key factors influencing consumer adoption of fashion-as-a-service models, including convenience, flexibility, and sustainability concerns.
• Evaluate Operational Challenges: To critically assess the challenges associated with scalability, profitability, and customer retention faced by businesses within the fashion-as-a-service sector.
• Explore the Role of Technology in Service Delivery: To explore how digital platforms and technological advancements facilitate the execution and growth of fashion-as-a-service business models.

• PROBLEM STATEMENT: The fashion industry is under increasing scrutiny due to its environmental impact, driven by fast fashion, overproduction, and excessive waste. As consumers become more environmentally aware, there is a rising demand for sustainable alternatives to traditional fashion consumption. Fashion-as-a-service models, such as subscription and rental systems, offer an innovative approach to meet these demands, providing consumers with access to curated collections of clothing while promoting the reuse and longevity of garments. Despite the growing popularity of these models, there is limited research on their environmental efficacy, consumer acceptance, and the operational challenges companies face in scaling these services. This study aims to bridge these gaps by examining the transformative potential of fashion-as-a-service models in promoting sustainability and assessing the challenges companies face in implementing these models effectively.

• LITERATURE REVIEW: The fashion industry is evolving with a growing focus on sustainability, driven in part by the rise of fashion-as-a-service (FaaS) models such as clothing rental and subscription systems. These innovative models are reshaping how consumers engage with fashion, offering a more sustainable alternative to the traditional ownership-based system. As concerns regarding overproduction, waste, and environmental impact continue to mount, fashion-as-a-service is becoming an essential area of exploration within the industry (Bocken et al., 2016). According to McKinsey & Company (2020), these models align with consumer demands for flexibility and eco-consciousness, particularly among younger generations such as millennials and Generation Z. A fundamental aspect of the success of fashion-as-a-service models lies in understanding consumer behavior. Research indicates that younger consumers, especially millennials and Generation Z, are increasingly inclined toward sustainable consumption patterns, driven by factors such as cost-effectiveness, convenience, and environmental concerns (Joy et al., 2012). Subscription and rental models cater to this shift, offering consumers access to high-quality clothing without the burden of ownership. As McKinsey (2020) highlights, the demand for clothing rental and subscription services has surged, fueled by the appeal of curated, flexible, and sustainable alternatives to traditional fashion retail. Additionally, the rapid growth of digital platforms has played a critical role in making these services more accessible and consumer-friendly. Fashion-as-a-service models are recognized for their potential to address some of the most pressing environmental issues within the fashion industry. According to the Ellen MacArthur Foundation (2017), the fashion sector generates significant waste, with over 92 million tons of textile waste produced each year. The adoption of rental and subscription services promotes garment reuse, reduces waste, and supports the principles of a circular economy. Nordin et al. (2020) argue that these models play a crucial role in reducing the environmental footprint of the fashion industry by extending the life cycle of garments and promoting reuse, which ultimately lowers the need for constant production of new items. By facilitating access to clothing without ownership, these models help mitigate the overconsumption and excessive waste associated with fast fashion. While the rise of fashion-as-a-service offers promising benefits, businesses face significant operational and financial challenges in implementing these models at scale. The financial model of renting or subscribing to clothing requires substantial upfront investment in inventory and logistics. According to Joy et al. (2012), maintaining a profitable balance between inventory management, garment quality, and rental prices remains a major challenge for service providers. Furthermore, customer retention is a key concern in an increasingly competitive market. Studies by Bocken et al. (2016) suggest that while consumers may appreciate the sustainability of rental services, the perceived value and affordability of these services must be aligned with customer expectations to ensure long-term loyalty. Additionally, logistical issues such as garment cleaning, timely deliveries, and returns further complicate operational efficiency. The technological infrastructure that supports fashion-as-a-service models is a critical factor in their success. Advances in digital platforms, AI, machine learning, and big data analytics have enabled companies to streamline inventory management, predict consumer preferences, and enhance the overall customer experience (McKinsey & Company, 2020). Digital platforms facilitate the rental process, allowing for easy access to clothing, personalized recommendations, and flexible return options. The integration of technology not only improves operational efficiency but also enhances customer satisfaction by providing seamless user experiences and tailored offerings. As the demand for fashion-as-a-service grows, the role of digital platforms will become even more crucial in fostering business scalability and consumer engagement. The growing interest in sustainable fashion is expected to continue to drive the expansion of fashion-as-a-service models. As digital platforms evolve, new trends are emerging within the market, including the integration of second-hand fashion into rental and subscription services. This trend further emphasizes the circularity of fashion-as-a-service and contributes to reducing waste associated with fast fashion (Bocken et al., 2016). Additionally, the increasing consumer interest in eco-conscious consumption and the development of more efficient, cost-effective logistics solutions will likely support the continued growth of fashion-as-a-service. However, for these models to achieve long-term success, companies will need to address scalability issues, enhance customer loyalty strategies, and improve the overall environmental sustainability of their operations.

• RESEARCH METHODOLOGY:

Secondary Data Analysis

• The research utilizes existing literature, market reports, and case studies from academic sources such as Emerald Insight, McKinsey reports, and Google Books.
• Data from McKinsey’s consumer survey on subscription models and previous studies on sustainable fashion rental models are analyzed to understand global and Indian market trends.

• Research Design:

This study employs a qualitative method research design to provide a comprehensive understanding of the impact of fashion-as-a-service models, particularly subscription and rental systems, on sustainability in the fashion industry. The method approach is chosen to integrate both qualitative data, thereby capturing the nuances of consumer behavior, market trends, and environmental implications while also providing measurable insights into the effectiveness of these business models.

• Research Approach:

This study employs a secondary research approach, analyzing existing data from scholarly sources, industry reports, and case studies to understand the growth, challenges, and future potential of fashion-as-a-service (subscription and rental models) in India. A descriptive and exploratory research design is used to systematically review relevant literature, identify key trends, and assess the role of sustainability in these business models.

3.3 Data Sources:

Secondary data for this research is collected from three key sources:

1. Academic Journals & Books
   • Emerald Insight (Journal of Fashion Marketing & Management): Provides insights into consumer behavior, market trends, and sustainability in fashion.
   • Google Books (The Rise of Fashion as a Service): Discusses the evolution of subscription and rental models in sustainable fashion, focusing on their adoption in India.
2. Industry & Market Reports
   • McKinsey’s Report on Subscription-Based E-commerce: Offers valuable data on consumer preferences, financial feasibility, and business models of fashion subscriptions globally.
   • Reports from Indian fashion rental startups (e.g., Flyrobe, Rent It Bae, Stage3): Provide business case studies and real-world examples of market trends.
3. Government & Trade Organization Reports
   • Confederation of Indian Textile Industry (CITI) reports: Help in understanding the export performance and regulatory impact on the Indian fashion industry.
   • Ministry of Textiles, India: Offers policy insights and sustainability initiatives influencing fashion rental markets.

3.4 Data Collection & Selection Criteria

• Time Frame: Data from the past 10 years (2015-2025) is considered to track the evolution of fashion rental and subscription models.
• Relevance: Sources must directly relate to fashion sustainability, subscription-based retail, or Indian market trends.
• Credibility: Only peer-reviewed journals, industry reports, and government publications are included.
• Comparability: The research compares India’s fashion rental market with global leaders like the U.S. (Rent the Runway), U.K. (HURR Collective), and China (YCloset).

4. Data Analysis Techniques

• Trend Analysis: Examines historical data to track the rise of sustainable fashion rental models.
• Comparative Analysis: Assesses the differences between India’s rental market and global leaders.
• Content Analysis: Identifies recurring themes in scholarly literature and industry reports (e.g., consumer preferences, environmental impact, business challenges).
• Market Forecasting: Uses secondary data to predict future growth potential of subscription-based fashion in India.

 

4. FINDINGS AND ANALYSIS:

4.1 Drivers of Subscription Model Adoption:

• Convenience and Personalization: Subscription services offer curated selections and personalized styling, catering to the time-constrained lifestyle of modern Indian consumers.
• Cost-Effectiveness: Access to a wider range of styles and brands at a lower cost compared to traditional retail.
• Sustainability Concerns: Growing awareness of environmental issues and a desire to reduce textile waste.
• Experiential Consumption: The novelty and excitement of receiving curated boxes contribute to a positive consumer experience.
• Technology Adoption: Increased smartphone penetration and internet accessibility have facilitated the adoption of e-commerce and subscription services.

 

4.2 Impact on the Indian Fashion Ecosystem:

• Promotion of Sustainable Practices: Subscription models can contribute to a more circular fashion economy by extending the lifespan of clothing and reducing waste.
• Empowerment of Local Artisans and Designers: Subscription services can provide a platform for showcasing local talent and promoting indigenous crafts.
• Increased Accessibility to Fashion: Subscription models can democratize access to fashion, offering a wider range of styles and brands to consumers in Tier 2 and Tier 3 cities.
• Shift towards Experiential Retail: The focus on curated selections and personalized styling can transform the retail experience.

• Alignment with Sustainability Goals:  The Indian government’s focus on promoting sustainable development and circular economy principles aligns with the potential benefits of fashion subscription models. These models can contribute to:
• Reduced Textile Waste: Extending the lifespan of clothing and promoting reuse.
• Lower Carbon Footprint: Reducing the need for new production and transportation.
• Resource Conservation: Minimizing the consumption of water and energy in the textile industry.

 

5. CONCLUSION:

The integration of subscription models within the fashion industry represents a significant paradigm shift, driven by evolving consumer preferences, technological advancements, and the imperative for sustainable practices. This research paper has synthesized secondary data to provide a comprehensive analysis of the key drivers, challenges, and implications of this trend.

The successful implementation of subscription models requires a strategic focus on customer experience, operational efficiency, and sustainability principles. Businesses must adapt to the evolving demands of the digital age and embrace circular economy practices to achieve long-term success.