Hong Kong may be a small place, but it has always been known for its fast pace and high efficiency, a culture that is deeply ingrained in the daily lives of its people. Fast fashion, with its affordable prices, extensive range of styles, and trend-focused designs, has gained immense popularity in Hong Kong. This led to the rapid rise of fast fashion brands such as Forever21, H&M, Zara, and GAP in the region. However, with the surge in online shopping, the popularity of fast fashion has been on the decline, and its appeal has waned in recent times.

Similar to economic cycles, every industry experiences a slowdown after a period of rapid growth. This is true for both the retail cosmetics industry in its early days and the fast fashion industry discussed in this article. A few years ago, fast fashion was booming, and related retail stores were popping up everywhere. However, the emergence of online shopping has compelled the big players who expanded aggressively a few years ago to take a step back and reconsider their future development strategies.

Cosmetics can be forgone, but clothing is a must-have for everyone. To bring back consumers to brick-and-mortar stores, the key is to enhance their shopping experience. One of the new approaches in the industry is clothing rental. Could you envision that fast fashion, recognised for its low prices, is now available for rental?

H&M has announced the introduction of a clothing rental service at their flagship store in Sergels Torg, Stockholm, joining other fast fashion brands that have introduced similar services this year. For a fee of 350 Swedish kronor (approximately HKD $280), customers can rent up to three pieces of clothing. The company also provides online reservations and outfit recommendations to elevate clothing rental as a fashionable trend.

Joining the fast fashion industry, household goods giant IKEA also announced the launch of an office furniture rental service before the new year. Although IKEA's furniture is known for being budget-friendly and of good quality, it is also associated with the concept of 'overconsumption'. With the new rental service, used furniture will be refurbished and then made available for rent, sold as second-hand, or donated to prolong the product's lifespan. This initiative caters to business needs while also enhancing IKEA's brand image, killing two birds with one stone.

The shift from buying to renting has recently made its way to mobile phones. iPhone's design, which has led to a decreased desire for upgrading devices among consumers, has caused growth and profits to slow down. To retain its loyal customer base, Apple has launched the iPhone Upgrade Program, enabling users to rent the latest phone models through a monthly fee system.

Gome, a Chinese retailer, experimented with a phone rental service before the new year, allowing customers to rent an iPhone 7 for a year at a monthly fee of 330 yuan. However, the rental fee was not much lower than the purchase price, resulting in a lukewarm response from the market. While Gome's rental service and Apple's seem similar, Apple is actually competing with the second-hand phone industry. For consumers, renting a phone from Apple is advantageous as it comes with an official warranty and prevents them from acquiring heavily used phones.

In today's dynamic market, businesses are adopting diverse strategies to counteract the deceleration in growth. Renting has emerged as a favoured option for those who don't desire long-term ownership of certain goods or services. Similarly, there has been a surge in the market for renting companions, catering to individuals who seek temporary companionship without the burden of a lasting commitment. This trend underscores the importance of living in the moment and relishing present experiences, rather than being restricted by future obligations.