24 April 2023
3 min read
High-End Rental & Resale Market Will Grow 5 Times by 2025
The growth of the high-end rental and resale market has been remarkable over the past few years. According to a report by Bain & Company, the luxury resale market is expected to grow five times faster than the luxury market as a whole by 2025. This growth is due in part to the rise of sustainability concerns among consumers who want to reduce their environmental impact.
The circular business models that involve renting and reselling products are gaining popularity because they provide a solution to the problem of overconsumption and waste generated by the fashion industry. These models allow consumers to enjoy the latest fashion trends without having to buy new clothes every season, and they also provide a more affordable option for those who cannot afford to buy luxury items outright. Additionally, renting and reselling products prolong the life of garments and reduce the amount of textile waste generated by the fashion industry.
Luxury Products and Resale Value
Grace Osborne, senior associate analyst, ESG at Bloomberg Intelligence, emphasizes that luxury products are synonymous with longevity and quality, which are key factors in determining resale value. Fast fashion, on the other hand, is not built to last and does not hold its value over time. Therefore, consumers who invest in high-quality, durable luxury items are more likely to benefit from the growing rental and resale market.
Incorporating Circularity in Design Phase for Garment Recycling
The EU’s Sustainable and Circular Textiles Strategy aims to promote sustainable and circular practices in the textile industry. The strategy requires that all textiles entering the EU by 2030 must be long-lasting, repairable, and recyclable. However, industrial-scale recycling of garments is a complex process due to the high amount of fibers they contain. Therefore, incorporating circularity into the design phase is essential to ensure that garments are made with materials that can be easily recycled.
AI-powered Tools for Optimizing Production Processes and Improving Product Quality
Although AI has the potential to revolutionize production models and reduce waste while increasing profits, it may also result in decreased revenue for manufacturers. However, technology can play a crucial role in decreasing the 30% of global garment production that never gets sold and ends up in landfills, dumped in developing countries, or incinerated.
AI-powered tools can help manufacturers optimize production processes, reduce waste, and improve product quality. Furthermore, technology can help companies track products throughout their lifecycle, from production to disposal, to ensure that they are recycled or disposed of properly.