YOWO- You Only Wear Once
It is not a new phenomenon that people, and women in particular, do not have anything to wear despite a closet full of clothes. A study of 18,000 households in 20 countries discovered that approximately 50% of people’s wardrobe are not in use. [1] Between 2000 and 2014, the production of clothes doubled with the average consumer buying 60% more compared to 15 years ago. However, each item is kept for half as long. [2]
Increased shift to eCommerce shopping.
With the spread of covid-19 and social distancing measures, many traditional retail- and department stores were closed for several weeks. Apparel retailers have fast-tracked the shift to eCommerce through technology and software development in order to enhance digital capabilities and speed to market. Brands like Nike and Lululemon are channeling sales directly to the end consumers taking control of inventory and reducing costs.
Ecommerce is a USD3 trillion market globally, excluding China and bill payments, and has reached a fundamental inflection point likely to grow in the mid-to-high-teens range post covid-19. The pre-covid-19 levels are in the low-to-mid-single digit range. In recent weeks US eCommerce spend on apparel was up +102% and was growing more than 50% YoY since mid-April, even after stores had begun to reopen. In the UK during lockdown online shopping increased from 27% to 88%. In 2019, US e-commerce represented ~26% of apparel, up from 6% in the last decade and is estimated to increase by 20% in 2020. European online penetration increased from 6% to 18% over the same period and is expected to reach 23% penetration in 2020. [3] The broader offline retail sector is projected to shrink 15% from 2019 to 2021. [4]
Wardrobe rentals gained momentum prior to covid-19.
There are a variety of subscription-based clothing services on the market dubbed on the Airbnb fashion of a sharing economy. These services offer to rent you items for a monthly fee or at a cost typically equal to 10-20% of the item’s retail value. If you love the item, some platforms allow you to buy it at a discount or extend your rental. You get a prepaid label with every order and can switch items within the rental period. Other services allow you to rent just for a special occasion such as a wedding or tuxedo event, and some even offer to send a free backup size to ensure customer satisfaction. The subscription service providers will handle your specific requests through technology driven software, notify you when other items you listed are ready, package the goods, ship the clothes to your door within i.e. 2 days, dry clean the items and provide styling services tailored your needs and preferences. The shipping service, dry cleaning and insurance of damage goods are all included in the price.
