Motivators of Circular Fashion: The Antecedents of Chinese Consumers’ Fashion Renting Intentions
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1. Introduction
Renting, a type of access-based consumption, under the umbrella of a circular economy, is expected to become a significant trend by 2025 [1]. Though the non-ownership mindset of renting started with high-value and durable items like cars, this trend has been spread to relatively low-value and non-durable products like clothing [2]. A current report estimates that the revenue of the global online clothing rental market is expected to grow to USD 1.83 billion by 2028 [3]. This new business concept involves shifting consumer attitudes and threatens the traditional retail industry, but as a result, the “new retailing” format has turned into a marvelous opportunity as well.
The traditional fashion system primarily relies on a linear system [4], known as the “take-make-waste” model [5], which focuses on the “cradle-to-grave” concept. Products are made from raw materials and discarded as waste eventually [6], generating thousands of tons of textiles that end up in landfills each year [7]. Recently, there has been a growing transition in the fashion industry toward circular fashion, which emphasizes the reuse of products and keeping fashion items in a closed loop for a longer time. Renting, a type of access-based consumption, has been seen as an essential mode of the circular system. Fashion renting not only enables individuals to have access to a “new” product, the latest fashion, and aspirational brands that they may not afford [8] by reducing the burden of ownership [7], but also escalates the use frequency of clothing and keeps the items in the circulation loop [7,9], which play vital roles in eventually lowering the carbon emissions of fashion production.
It is increasingly evident that fashion renting is making a great contribution to the attainment of sustainable development goals and is growing exponentially in many countries [6]. Although the COVID-19 pandemic slowed down the business of fashion rental in 2020 and 2021, the trend of exploring budget-friendly options by reducing the burden of ownership and the shift of consumer preferences toward variety and novelty have been evident since 2022 [3], which contributed to the growth of the fashion rental market. However, the current global renting market is unevenly developed across countries, and it is led by developed countries (e.g., North America and Europe). A recent report has revealed that 40% of Americans prefer renting clothing instead of purchasing it [3]. Even though fashion renting is widespread in the US market, this market activity still represents an emerging phenomenon in other countries [10]. For instance, China, the largest share of the Asia Pacific market, is behind in the fashion rental business.
The Chinese apparel market is projected to generate a revenue of USD 313.8 billion in 2023 [11] and is considered the largest apparel market globally. Driven by the increasing awareness of sustainability, Chinese consumers have displayed a surge in demand for sustainable and ethically produced clothing. The product-sharing market in China exceeded USD 3 trillion in 2019 [12], which indicates that China has now genuinely embraced the circular economy. Renting is not a new concept in China. Several factors, including a growing population in cities, the rapid development of technology, and an increasing number of price-conscious consumers, explain the growth of the renting business (e.g., car renting, bike renting, book renting, etc.) in China. Nevertheless, when it comes to fashion renting, Chinese consumers may still show hesitations.
Previous studies have explored different factors that have influences on fashion renting activities; however, within the literature, a majority of studies investigating fashion rental are focused on the Western market, e.g., [13,14,15,16,17]. Yet, related research focusing on fashion rental in the Chinese market is severely lacking and limited. To the authors’ knowledge, only a few studies have focused or partially focused on China’s fashion rental market, such as understanding Chinese consumers’ second-hand clothing consumption intentions and perceived values and concerns [18]; determining the causes of clothing subscription rental services among young Chinese consumers [19]; or exploring the influences of both Chinese and US consumers’ attitudes and subjective norms regarding clothing rental [20]. Relatively, more reports outside of the academic field pay close attention to the development and potential of China’s fashion rental market. However, they are focused on single business cases, such as the fashion rental pioneer YCloset [21].
Due to the significance of the Chinese apparel market and the large population of Chinese consumers that have great potential to contribute to fashion sustainability, the limited literature, or lack thereof, demonstrates an urgent need to identify the antecedents behind the Chinese fashion rental market. This study aims to contribute to the literature through a quantitative study by investigating the barriers to and motivations behind fashion renting in the Chinese market. Previous research has pointed out the influences of sustainability-related factors on Chinese consumers’ fashion renting intentions, such as environmental consciousness [19], environmental value [22], and environmental concern [23]. The current study will only focus on shopping-related factors to examine the antecedents of Chinese consumers’ fashion renting intentions. Specifically, this study is developed to investigate how some intrinsic factors (i.e., shopping values, frugality, and perceived enjoyment) and extrinsic factors (i.e., product performance risk and social risks) influence Chinese consumers’ intentions regarding fashion renting. This study initiates an attempt to examine the impacts of both shopping values and perceived risks on the intentions regarding fashion renting among Chinese consumers and to address why and why not Chinese consumers would like to rent fashion products. It reverberates the current rising research demand of investigating consumers’ responses to circular fashion, specifically fashion renting. This study’s results are expected to be able to shed light on the understanding of Chinese consumers’ renting intentions, which could help fashion rental businesses implement efficient marketing communication strategies to increase fashion circulation.
5. Discussion and Implications
This research investigates how utilitarian and hedonic orientations, frugality, and perceived risks determine Chinese consumers’ attitudes and perceived enjoyment regarding the intention to participate in fashion renting. The results indicated that social motivation and social risk directly influence consumers’ attitudes regarding fashion renting and their perceived enjoyment. This implies that the pursuit of enjoyment through social connections is crucial in shaping positive attitudes and experiences in fashion renting. Achievement motivation and performance risk only directly impact perceived enjoyment, and not the general attitude toward fashion renting. This could imply that while utilitarian reasons and cognitive assessments from consumers might enhance their perceived enjoyment of fashion renting, they do not necessarily influence consumers’ overall attitudes. Frugality directly influences perceived enjoyment and the intention to rent fashion but does not affect the attitude toward the intention to rent, which suggests that cost-saving aspects are significant drivers for the intention to engage in fashion renting due to the practical benefits of saving money. This study confirmed that consumers’ attitudes toward fashion renting are shaped by their social motivations and perceived social risks, but not by frugality. Surprisingly, this study’s results indicate that perceived enjoyment does not lead to behavioral intention, which suggests that even if consumers enjoy the concept of fashion renting, this does not necessarily translate into an intention to engage in this behavior because of the complexity of the decision-making process, which might be influenced by a combination of different factors (e.g., perceived risks).
As observed in 2023 and beyond, Chinese consumers, alongside those from many other countries, are experiencing a transformative phase in their consumption patterns, such as degrading shopping choices, reducing shopping frequencies, purchasing second-hand items, and so forth. These changes can be closely tied to the growing embrace of sustainability and principles of a circular economy, but also to a global economy downturn and supply chain reconstruction due to geopolitical reasons and self-preservation modes being run by many countries after COVID-19. These macro trends can steer businesses toward more local (nearshore or onshore) retailing, production, and distribution models. As a result, these zeitgeists after COVID-19 might lead to business opportunities for fashion renting businesses as they align well with the broader ideological shift towards sustainability and offer a viable alternative to traditional fashion consumption. Researchers foresee the possibility of the fashion renting model maturing and becoming an integral part of the diverse fashion industry landscape, which already includes upcycling and resale sectors.
However, while the growth potential is evident, it is crucial to acknowledge the challenges and uncertainties facing investors and new businesses in this space. First of all, Chinese consumers’ attitudes toward fashion renting are largely determined by whether the online renting platform can fulfill their social needs, that is, whether fashion renting businesses can create a collectivist atmosphere that defines their affective components of attitudes. As Sternquist and Zhou [77] claimed, shopping is an important social occasion that provides opportunities for families and friends to stroll around marketplaces for window shopping in major cities in China. Shopping with others is found to be very important for Chinese consumers in terms of having a pleasant shopping experience [78]. Retailers and marketers should consider stimulating companion and group shopping behaviors in the renting platform. In addition, creating virtual communities in renting platforms to engage consumers’ social interaction experiences is of great concern. The online community can also serve as a platform to share consumers’ experiences of fashion renting to inform and motivate consumers to become involved in fashion renting.
The most mature renting business in China is limited to products such as bikes and cars. Fashion renting is still an emerging business and needs more awareness among Chinese consumers. Consumers trying out fashion renting in China from businesses such as Ycloset and Dora’s Dream are usually college students or young professionals [79]. They rent for fashion with the primary purpose of representing themselves with different social images through wearing trendy items. Therefore, the current renting behaviors in China are likely driven by hedonic values. However, fashion renting, as it is in the introduction stage in China, does not appeal to achievement-oriented Chinese shoppers. Compared with shopping at a familiar store, renting from an APP or online may conceal much more uncertainty for utilitarian Chinese shoppers. This result indicates that tailoring their services to meet consumers’ utilitarian needs may benefit fashion renting businesses in China. This approach involves offering fashion items that serve specific functional or practical purposes. For instance, businesses could focus on providing attire for events like weddings, interviews, graduations, and other significant occasions. By catering to these specific needs, fashion renting businesses can position themselves as practical solutions for consumers seeking appropriate attire for essential events without the commitment of a purchase.
A significant negative relationship was found between social risk and both attitude and perceived enjoyment regarding the intentions of Chinese consumers to rent. This result is different from that of [59] in the United States, where no direct relationship was found between social risk and either attitude or perceived enjoyment. Rooted in collectivism and an interdependent cultural value system, a significant concern about ego and personal image loss still originates from evaluating other people. Chinese consumers are more likely affected by the burden of receiving judgments from their peers by wearing rented clothes; thus, this concern may initiate negative attitudes toward fashion renting. Considering renting while spending less money by giving up ownership may make some Chinese consumers feel ashamed and afraid that others may think they cannot afford new items. Concerning one’s self-esteem and social standing among peers, an individual’s renting intention might be reduced. Nonetheless, by paying a minimum price, consumers may keep up with the trends and show a fashion leader image and alternative extensions of themselves among their peers. This may trigger a greater intention to rent.
Performance risk is a significant barrier to fashion renting consumption among Chinese consumers. A primary concern, as identified in [13], revolves around the hygiene and quality of rented items. This concern is increased when consumers rent from unfamiliar brands, as there is a greater fear that the items will not meet their expectations. Such concerns are further amplified in online rental scenarios. To mitigate perceived performance risk, fashion renting retailers should consider expanding their operations to include offline channels by establishing physical showrooms, return centers, and dedicated service centers. These offline touchpoints allow consumers to personally inspect and experience the quality of the items and the brands before renting them, thus reducing the perceived risk and enhancing trust in the service.
As predicted, the direct effects of frugality on perceived enjoyment and Chinese consumers’ intention to participate in fashion renting were confirmed. In contrast, the association between frugality and attitude toward renting intention was insignificant. The results differ from the study conducted in [59] among US consumers. Individuals with a higher level of frugality care more about making the most of what they have without unnecessary spending [66]. Through renting, consumers can access more trendy and high-quality pieces without the commitment of purchasing. It can be a cost-effective way to enjoy variety in their wardrobes. Especially after the COVID-19 pandemic, with financial uncertainties, fashion renting became an excellent budget-friendly option. This is especially true for the category of high-value fashion items because people are concerned about their pockets but still want to consume high-quality and high-value products with low financial burden and risk [33]. Fashion retailers who provide rental services, especially those who provide high-value fashion products, should emphasize the economic benefits of rentals in their marketing strategies.
The results show that attitude has a positive direct effect on the intention to rent. This finding is consistent with a study conducted in the United States presented in [59]. Social shopping motivation and achievement shopping motivation are positively related to attitude, while social perceived risk negatively influences attitudes toward fashion renting. Based on these findings, when stimulating consumers’ intentions regarding fashion renting, marketers and retailers should articulate that, first of all, fashion renting creates an online or offline space for customers shopping together; second, there are unlimited choices for them to rent, and guaranteed effective customer services will be provided to assist them with finding the right products. Also, renters may promote themselves by educating consumers about fashion renting as a socially responsible and economically assessed consumption that has been widely adopted. As a majority of consumers gradually become familiar with the ideology of renting consumption, less social perceived risk attributed to renting will result later on.
6. Conclusions, Limitations, and Future Research
This study investigates the antecedents determining Chinese consumers’ intentions to rent fashion items. The results theoretically confirm and expand the knowledge regarding what conceptual constructs impel or restrain consumers’ renting behaviors. By expanding the body of knowledge concerning circular fashion, this study equips us with valuable insights into this rapidly growing industry. Given the novelty of the fashion renting business in China, educating consumers with more knowledge of fashion sustainability and the merits of fashion renting may be necessary to encourage circular fashion. The results emphasize the importance of consumers’ attitudes and perceptions of renting fashion products with the intention of participating in fashion renting. The major findings from this study are that social shopping motivation is a strong determinant of attitude toward fashion renting. The statistical results also confirm the positive influences of attitude and frugality on fashion renting intention and indicate that a favorable attitude toward fashion renting reflects consumers’ perceptions of the benefits and enjoyment associated with the services. In addition, the negative influences of perceived social risk on attitude and perceived enjoyment are also affirmed. This study’s results contribute to the academic gap of empirical knowledge on the antecedents of Chinese consumers’ fashion renting practices.
In the evolving landscape of the fashion industry, fashion renting remains in an organic phase. The preferences of Chinese consumers toward fashion renting have yet to solidify, as evidenced by the fluctuating success of fashion renting businesses in China. This instability indicates that, while there may be a positive attitude toward fashion renting, the general positive attitude only sometimes translates into actual subscription service behaviors and even less into long-term subscription commitments. The disconnect between attitude and intention highlights the complexity of consumer engagement in fashion renting, calling for further research investigating the critical gap between consumers’ intentions and their willingness to commit to a renting subscription-based model.
While offering valuable insights, this study is subject to several limitations. A primary limitation is the lack of data on consumers’ actual fashion renting behaviors. This gap is a challenge in determining whether the identified antecedents directly lead to actual renting behavior. Future research should focus on how these antecedents impact the behaviors of actual fashion renting users, thus providing a more direct connection between the theoretical framework and practical behaviors. Secondly, it is important to consider that fashion renting has yet to be a predominant choice among Chinese consumers. Future studies should incorporate the involvement toward fashion constructs into theoretical models of renting to better understand the motivational process of fashion renting in China. This would serve as an antecedent of motivational value, which would offer more fruitful insights into what drives consumer interest in fashion renting. Furthermore, this study did not include sustainability-related factors (e.g., environmental awareness, environmental concerns, environmental knowledge, and the sustainable benefit of renting); future research may add these factors when studying Chinese consumers’ fashion rental practices. In addition, this study did not differentiate fashion renting items into low- and high-value categories. Such a distinction is critical as consumers’ cognitive, affective, and motivational responses vary significantly between low- and high-value fashion items. Future research exploring these potential differences could reveal important insights into how consumers perceive and engage with different tiers of fashion renting options.
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