Luxury on Rent: The Rising Trend Among Millennials and Gen Z in India

The concept of luxury is undergoing a significant transformation, particularly among younger generations. Traditionally associated with exclusivity, craftsmanship, and ownership, luxury is now more about the experience than possession. This shift is driven by factors such as instant gratification, environmental consciousness, and a desire for minimalism. The younger demographic, accustomed to quick commerce, is less inclined to wait until they can afford luxury items and instead seeks temporary access through rental models. These models, part of the broader sharing economy, allow consumers to experience high-end products without committing to ownership. Platforms like Rent the Runway and Flyrobe are making luxury more accessible, tapping into a latent demand for affordable, temporary access to prestigious goods. Additionally, luxury brands are grappling with issues like wardrobing—where customers return products after one-time use—which could be mitigated by embracing rental business models. Rentals not only promote sustainability but also increase brand exposure and potential sales by introducing luxury goods to a broader audience. As the market evolves, luxury brands must adapt to these new consumption patterns, aligning their strategies with the growing demand for experiential luxury and environmentally conscious consumption.