Following this week’s news that ASOS has partnered with rental platform Hirestreet; Alice Price, apparel analyst at GlobalData, offers her view: “ASOS’ rental partnership with Hirestreet is a smart move for the fashion giant, as its expansive occasionwear offering is unrivalled, making it a strong candidate to win within the rental market. Amidst a challenging year for the retailer, with UK revenue in the six months to 28 February 2023 falling 10.3%, this rental initiative will help increase relevance among its shoppers which are becoming increasingly conscious of both the cost and environmental impact of buying new clothes. It will also help repair some of the reputational damage that resulted from greenwashing claims made against the retailer in 2022.
“The UK rental market has boomed in recent years and is set to grow by 163.9% between 2022 and 2026. However, it still only accounts for a small proportion of total apparel spend, at an expected value of just £229.9m in 2023. Therefore, ASOS will have to do much more to truly benefit from the demand for sustainable apparel and improve its credentials. It should first tackle the problem at its source, by adopting more environmentally friendly production methods and marketing these effectively to drive awareness and gain consumer trust.
“ASOS should also not overlook the growing resale market. ASOS Marketplace sells some pre-owned items, but compared to resale platforms such as Vinted, garment prices are more expensive and comparable to buying new, as it mainly sells styles from independent boutiques. Items also tend to have a vintage aesthetic, restricting appeal among the everyday ASOS shopper. ASOS should therefore take inspiration from competitors such as PrettyLittleThing and consider launching a dedicated C2C resale app, to fully tap into the secondhand market and attract more eco-conscious consumers.”
