Start A Clothing Rental Business - Business Ideas

Updated: September 15th, 2022
Start A Clothing Rental Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

A clothing rental business allows customers to rent high-end fashion apparel and accessories for a specified period. The business typically carries various clothing items, including dresses, suits, outerwear, and formal wear.

To start a successful clothing rental business, it is essential to invest in high-quality, stylish clothing that is in demand. This can be achieved through partnerships with designer brands or sourcing items from high-end retailers.

In addition to carrying a wide selection of clothing, it is also essential to have a system in place for tracking inventory and maintaining the condition of the items. This includes regularly cleaning and repairing items to ensure they are in top condition for each rental.

Another critical aspect of running a successful clothing rental business is providing excellent customer service. This includes offering flexible rental periods, providing clear instructions on how to care for the items, and promptly addressing any issues or concerns that may arise.

Finally, it is essential to have a strong marketing strategy in place to attract and retain customers. This can include utilizing social media and other online marketing channels and partnerships with local events and businesses to promote the business and its offerings.

Starting a clothing rental business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell clothing rental, or selling clothing rental online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
$527B
starting costs
$18.9K
gross margin
43%
time to build
270 days
growth
Organic social media
business model
Subscriptions
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs

Equipment & Supply Expenses

$66

$1,200

Retail Business Expenses

$1,250

$11,650

Inventory Expenses

$350

$14,750

Advertising & Marketing Costs

$75

$9,636

Software Expenses

$0

$425

Website Costs

$13

$215

Total Startup Costs

$1,754

$37,876

Successful Businesses

Business URL Rank

Vuori Clothing

vuoriclothing.com

25,389

Gwynnie Bee

gwynniebee.com

187,576

Dress Hire Australia

glamcorner.com.au

249,191

Friar Tux: Premium Men's Suits & Tuxedos, Buy & Rent Online

friartux.com

364,858

FashionPass: Rent Clothes on Subscription from Top Designers

thefashionpass.com

407,327

NY&C Company Closet

nyandcompanycloset.com

577,200

Style Theory

styletheory.co

1,118,982

Rent My Wardrobe

rentmywardrobe.com

1,508,494

Rentwear Inc.

rentwear.com

1,975,501

The Clothing Rental

theclothingrental.com

2,063,906

charlotte's closet

charlottes-closet.com

2,088,967

Pros & Cons

Pros Description

Rewarding work

Starting a clothing rental business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Meaningful business connections

You never know who you will meet as a clothing rental business. This could be the start of an incredible business opportunity!

Daily physical activity

Clothing Rental Business's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.

Amazing perks and discounts

Working in the clothing rental business comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.

You are your own boss!

With starting a clothing rental business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!

Local Community

One of the best parts of starting a clothing rental business is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.

Cons Description

Crowded Space

Competition is high when it comes to your clothing rental business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

Finding The Right Supplier

Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Low margins

The gross margins for your clothing rental business are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the clothing rental business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Taxes

As a clothing rental business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

    Learn more about direct sales ➜

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

    Learn more about word of mouth ➜

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜