Exploring renting models for clothing items – resource interaction for value creation

Abstract

Purpose The purpose of this paper is to explore renting models for clothing items and their value creation logics with a basis in resource interaction. Design/methodology/approach The paper relies on a multiple case study of renting models pursued by start-up companies in the Swedish context. The cases cover fashion wear as well as outdoor clothing. The theoretical frame builds on the industrial marketing and purchasing approach to business markets with a special focus on resource interaction and value creation. Findings The multiple case study provides the basis for identifying three categories of renting models: membership, subscription and individual item renting. The three models use different patterns of resource mobilisation, resource utilisation and resource combination to build their value creation logics. Research limitations/implications A plethora of different business models for sharing resources will be needed in reaching sustainable development in the fashion context. Renting models is one such model for sharing resources that increase product usage but struggles with economic sustainability. Practical implications The paper offers implications for actors in the fashion industry and capital systems by considering renting models not as tech start-ups but as sustainable start-up business models in which investments require longer time frames before showing results. Originality/value Few studies have treated the variety of renting models for clothing items. Thereby this paper extends the literature by providing a categorization of such models and how they create value.