This study aims to examine the challenges, opportunities and strategic responses shaping the long-term viability of clothing rental businesses in India, highlighting sellers’ perspectives within the context of emerging markets. While prior research has predominantly focused on consumers’ adoption intentions, this study foregrounds entrepreneurial experiences within rental fashion businesses.
This study uses a qualitative research design using semistructured interviews with 20 clothing rental entrepreneurs operating in the Delhi-National Capital Region of India. Guided by Behavioral Reasoning Theory (BRT), the interview protocol explored entrepreneurs’ “reasons for” and “reasons against” sustaining rental operations. The data were analyzed through thematic analysis using manual coding and ATLAS.ti software.
The findings reveal that environmental consciousness, affordability, digital accessibility and changing consumer preferences act as important enablers of rental fashion adoption. However, entrepreneurs continue to face significant barriers including hygiene concerns, inventory risks, reverse logistics complexity, fluctuating demand and low profitability. This study further identifies adaptive strategies such as hybrid rental-retail models, centralized refurbishing systems, collaborative logistics and digital engagement practices that enhance operational resilience and business sustainability.
This study contributes theoretically by extending BRT to organizational sustainability decision-making and practically by offering strategic insights for improving the scalability and resilience of circular fashion businesses in emerging economies. Several practical implications are drawn from the findings, and future research propositions are suggested for theoretical contribution as well as managerial contribution.
