Fashionistas in the UAE will soon be able to flaunt wearing top brands from Dior, Gucci or Balenciaga to parties or on holiday trips paying just a tiny fraction of their costs, with Cloudset, a re-commerce platform, set to introduce a dynamic ownership model, involving options for limited period purchase or rentals for high-end brands.
The startup’s innovative business model will enable customers to only pay for the period they actively use the apparel, maximising resource utilization while minimizing waste, empowering budget-constraint fashion enthusiasts to chase their craze for trendy, top-end brands.
Cloudset’s ambitious launch plans coincide with the increasing demand for sustainable and eco-conscious fashion solutions in the UAE – as also in the wider GCC region – amidst projections of the region’s re-commerce market reaching a whopping $11 billion mark by 2026, though still just a fraction of its projected global market size of $245 billion by the end of 2024.
The luxury re-commerce segment in GCC alone is projected to reach as high as approximately $800 million in the next two years.
“At the heart of Cloudset’s transformation lies its cutting-edge in-house technology platform, seamlessly integrating resale and rental options into a user-friendly experience,” Amina Musaeva, CEO of Cloudset, told Arabian Business.
“We aim to create an auxiliary tool for selling, built on top of our tech architecture, offering brands a chance to monetize unsold goods, increase customer loyalty, and find new sales channels for emerging designers,” she said.
Industry experts said the platform’s business model has the potential to become a big hit in the UAE and the wider region as it could appeal to the fast rising fashion conscious customers, especially the younger generation which faces pressing budgetary constraints, but eager to be consumers of the trendy and sustainable choices in the fashion world.
“Our platform will empower local fashion enthusiasts to embrace sustainable practices, without compromising the variety of style options,” Musaeva said.
Cloudset model goes beyond re-selling pre-loved items
Musaeva said unlike traditional re-commerce platforms, the Cloudset platform goes beyond simply reselling pre-loved items.
“Customers will be able to select the perfect outfit to rent or list their items on the platform in just a few minutes,” she said.
The startup top executive said by seamlessly integrating re-sale and rental options, Cloudset empowers fashion enthusiasts to embrace sustainable practices without compromising style variety, extending the lifespan of clothing, reducing textile waste, and contributing to a more eco-conscious future of fashion.
Incidentally, Cloudset debuted in the UAE with a high-profile soft launch during the recent Global Citizens Forum, held during COP 28, providing high-profile guests access to sustainable fashion options with a highly reduced carbon footprint.
Its platform features top brands from Dior and Gucci to Balenciaga and Bottega Venetta, as well as hosts mono brands, including Twinyards.
It is also an official partner of select Formula Two and Formula 3, and Yaspis, a Rennaissance tour dressing partner, among others.
“All items are inspected by Cloudset’s specialists to ensure a high-quality selection of premium and luxury fashion items,” Musaeva said.
Offering unique solutions to both B2C and B2B, reducing environmental impacts
According to Cloudset’s statistics, the UAE’s users typically rent bags and dresses for an average of 4 days for a special occasion and 10-14 days for a vacation.
The platform’s user base primarily comprises expats residing in Dubai who value the flexibility of rental and lead an active social lifestyle.
Musaeva said besides offering the dynamic ownership and rental options in the B2C segment, the company also provides a unique B2B solution with modular, expandable architecture that facilitates adding new features to the ecosystem, including a custom-developed CRM (customer relationship management) system.
This features a booking calendar, billing control, loyalty programs, analytics for the life cycle of clothes, conversion to purchase by different categories and marketing analysis.
Musaeva said said Cloudset also addresses the professional needs of fashion stylists and production studios.
She said while aligning perfectly with the growing consumer preference for sustainable fashion, Cloudset’s innovative approach also helps to cut CO2 emissions significantly
“In 2022, there was a record-breaking number of weddings in the UK. According to the regional rental provider, if at least 25 guests came in with rented items instead of bought ones to the wedding, it would have created a compensatory effect equal to the volume of CO2 of one flight from London to Copenhagen,”, Musaeva said, citing an example.
“This is just one example of how our technology can reduce the environmental impact,” she said.
According to a recent study, one-third of GCC consumers have already purchased pre-loved items, and another third plan to do so.
“Cloudset is well-positioned to capitalize on this growing demand, revolutionizing the fashion industry in the MENA region and beyond,” Musaeva said.
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