Le Tote China, which debuted in 2017, currently has more than 1 million members and is among the leading players in the clothing rental sector. Other major rental platforms are Shanghai-based Ms Paris and Y Closet from Beijing.

But instead of viewing the other companies as competitors, Tang said the clothing rental market is still at a nascent stage and is therefore large enough to accommodate more players.

"It's actually a good thing to see more players in the field, especially well-established brands or companies from other areas. It proves that clothing rental is a promising business prospect," says Tang.

Earlier in June, retail chain Urban Outfitters from the United States announced that it would launch Nuuly, its own clothing rental platform which offers apparel from both its own brands and others, including Levi's.