Is renting clothes instead of buying them truly better for the planet? As the fashion industry faces growing scrutiny for its environmental impact, a growing crop of clothing rental companies promises consumers the opportunity to refresh their wardrobes frequently while lowering their carbon footprint. But is this solution as eco-friendly as it appears? This is the question we sought to answer in a recent study, in which we examined the hidden effects of consumer behavior when using access-based services (“ABS”) instead of owning clothes.
Clothing Rentals & the Rebound Effect
Our qualitative and quantitative studies highlight a surprising fact: far from always reducing the ecological footprint, clothing rentals can actually encourage increased consumption among certain types of consumers. The cause? The rebound effect, a phenomenon that occurs when the expected environmental gains are reduced, cancelled out or even reversed by compensatory behaviors on the part of consumers. These issues are part of a wider debate on the limits of solutions perceived as ecological and on how consumers and businesses can react to avoid the pitfalls of overconsumption disguised under a different name.
ABS are built on a simple idea: instead of owning a good, the consumer benefits from it temporarily in exchange for payment. Possession is no longer an imperative. This paradigm shift has been made possible by the rise of digital platforms in transport (Uber), leisure accommodation (Airbnb), household appliances, and fashion.
Popular Flexibility
Clothing rentals – once reserved for special occasions, such as weddings – are now available for everyday wear. Platforms, such as Le Closet, Coucou, Rent the Runway, Hurr, Vivrelle, etc., allow consumers to borrow designer clothes and/or accessories for a few days or a few weeks, before returning them to rent new ones.
Consumers say that they value the flexibility and variety these services provide; they can stay up-to-date with fashion trends without committing long-term, all while engaging in a consumption model that is marketed as being more sustainable. Textile production is among the most polluting industries, especially with the rise of fast fashion. In principle, subscribing to a clothing rental service should not only limit the quantity of clothes produced, but should also extend the lifetime of a garment by offering it to several successive users.
Through conducting interviews with users of Franco-Belgian clothing rental platforms, we identified various rebound effects that challenge the idea that renting clothes is inherently more sustainable than buying them. Rebound effects occur when efficiency gains or practices that are supposed to be sustainable, such as clothing rental, paradoxically lead to an increase in consumption.
The easy access – variety and low cost of rented clothes can encourage a more frequent use of the service, or even lead to buying clothes impulsively (some people even buy clothes they initially rented) – can cancel out the expected environmental benefits of renting instead of buying (direct rebound effect). On the other hand, someone that saves money by renting clothes may use those funds to buy other goods or services in other product categories (high-tech products, travel, household equipment, etc.), thereby, increasing their total consumption and their ecological footprint.
Our quantitative study of 499 individuals allowed us to reach this conclusion, but it is crucial to understand that these effects are not homogeneous and vary according to consumer groups and their psychological motivations.
The Rebound Effect is Not Homogenous
Our study identifies two of the five groups analyzed – representing about one-quarter of clothing rental service users – as particularly prone to experiencing negative rebound effects. The “thrill and pleasure seekers” group (7 percent) is characterized by a strong search for stimulation and hedonistic motivations and is mainly made up of men. For them, renting clothes does not reduce their overall consumption, and on the contrary, it can increase it by stimulating their desire for novelty and diversity.
The group of “contextually apathetic spenders” (18 percent) displays paradoxical behavior: although they are not particularly motivated by pleasure or stimulation, and reduce their consumption of clothes by renting, they increase their purchases in other product categories after renting clothes. They are also the least frugal, which reinforces their propensity for indirect rebound behavior. They tend to be young urban men, often single and highly educated. These results highlight the need to address the diversity of consumer behavior within the sharing and ABS economy, and to adapt strategies for each consumer group.
Other Avenues for Responsible Fashion
Although ABS have the potential to promote more sustainable consumption habits, they can also encourage behaviors that negate these benefits – or worse, exacerbate environmental impacts. This research, therefore, challenges the assumption that clothing rental services are inherently sustainable.
So, what are the avenues for more responsible fashion? As ABS gain in popularity, it becomes crucial to understand how to maximize their ecological potential while minimizing undesirable rebound effects. To achieve this, businesses and consumers alike may need to rethink their approach.
The implications for managers and policy-makers are clear: it is not enough to promote clothing rentals as a sustainable solution. With around a quarter of users of clothing rental services likely to exhibit negative rebound behavior, it is essential to identify these consumers and provide them with appropriate information and incentives to limit these effects.
Rental companies’ communication strategies need to be differentiated, according to consumer segments. For people looking for stimulation and pleasure, hedonic incentives unrelated to the clothes rented, such as competitions, games, rewards or gifts, can be effective. For apathetic consumers, reminders of the negative consequences of their behavior can make them think more carefully about their choices.
Companies should avoid solely emphasizing the inherently hedonic aspects of clothing rentals, as this approach may inadvertently reinforce negative rebound effects. Instead, they should highlight the ecological benefits and promote value co-creation with consumers, addressing their needs while minimizing environmental impact. For example, clothing rental services could encourage the more responsible long-term rental of eco-designed products from brands that share the same ecological values. Instead of promoting the rapid rotation of items, they could encourage users to reduce the frequency of exchanges and limit the number of items that can be rented at the same time.
Efforts on All Fronts
Companies could also raise consumer awareness about the environmental impact of their choices by sharing data, such as the carbon footprint of rented clothes or the number of additional uses a rented garment achieves compared to a purchased one. Clothing rental companies should collaborate to share information and develop a deeper understanding of the environmental impacts of their practices. Through such cooperation, they can better target consumer segments and promote more responsible consumption behaviors.
At the same time, consumers play a crucial role in transforming fashion toward more thoughtful consumption. This shift begins with rethinking their relationship with fashion and adopting a minimalist approach that priorities quality over quantity. Consumers can also choose “ethical” pieces – responsibly manufactured garments that combine style and durability. Before renting a garment, they might ask themselves, “Do I really need this?” Such mindfulness can help prevent impulse rentals and reduce environmental impact.
Ultimately, though, achieving sustainability in clothing rental platforms requires a shared commitment from both businesses and consumers. Only through collaborative efforts can these apparel – based services deliver on their promise: reducing fashion’s carbon footprint while fulfilling consumer aspirations.
Joëlle Vanhamme is a Professor of Marketing at EDHEC Business School.
Valerie Swaen is a Professor at Université catholique de Louvain (UCLouvain).
Share
