Renting Traditional Clothes: A New Business Pops Up in Shiro Meda

A slowdown in business caused by skyrocketing prices as raw material costs escalate and dynamism in the ever changing fashion design of traditional clothes pushes entrepreneurs in Shiro Meda to come up with new ways to make outfits for special occasions affordable. EBR’s Meseret Mamo writes about the blossom of the traditional and modern clothing rental business

Shiro Meda, one of the biggest markets in Addis Ababa, found at the foothills of Entoto is famous for its locally-made traditional attire. Hundreds of visitors each day flock to this local market to purchase varieties of traditional clothes at a price that is less expensive than other markets in the capital.

Recently, however people have begun renting traditional clothes for special occasions like weddings. In a place called Megazen, one corner of Shiro Meda’s busy traditional clothing district, nearly 120 shops rent traditional clothes. This new trend is becoming a winwin situation for several people. People often don’t get much out of owning traditional clothes because they are only worn a few times, now that prices for formal wear have begun skyrocketing, many would prefer to rent and wear them when they need them.

In Shiro Meda, a readymade traditional dress of the best quality and latest design costs up to 5,000 Birr though inferior quality dresses around the outskirts of the market can be had for as little as 500 Birr. One of the highest quality types of fabric for producing traditional clothing is ‘Menen’. Other types of fabric, such as; Saba (Silk), Calos and Qumtare are also used to make traditional clothes. Clothes produced with these fabrics have varying qualities and styles. However, all of them are very delicate and damaged easily. Sometimes the colour on the ‘tibeb’, edge of the clothing fades away and ends up spoiling the entire piece of clothing when it is washed. This, in addition to price of the clothes, has further pushed some people to avoid purchasing traditional clothes.

However many still encounter times where they have to wear traditional clothes for public engagements, particularly during weddings and holidays. It is for these reasons they prefer renting them. The best quality dresses are rented out from 600-1,000 Birr per occasion which lasts for three consecutive days unless there is a special agreement. The rentee is required to deposit 1,000 in Birr collateral to rent these clothes. In addition to traditional clothes it has also become quite common to rent other more modern types of clothing, originally designed and manufactured for weddings for dinner dresses or other special occasions. 

In one of the shops of Megazen, Mimi Desta, 38, rents traditional and modern clothes. Though she started the business by selling traditional clothes, her principal work now lies with renting them. She changed her strategy from selling clothes to renting them because she could earn more money by renting them out repeatedly instead of selling them only once. She can earn even more money this way because the rented out clothes are eventually sold to people looking for second hand clothing at discount prices. “The increasing demand for rental clothes and the better revenue of renting and finally sellingclothes encouraged me to shift the model of my business,” Mimi told EBR.

Many, whom EBR approached, prefer renting because of the ever increasing price of traditional clothes which are only worn on a few occasions throughout the year. The high purchasing price forced customers like Tsega G/ Egziabher to rent clothes instead of buying them. Tsega, 30, a mother of two, prefers to rent traditional clothes for her around holidays and other special occasions. She also rents clothes for her children when they participate in events such as cultural days which are held at their school. “I prefer to rent such clothes occasionally because of the rapid change in fashion and the price for such clothes is increasing consistently,” she told EBR. For Tsega it is irrational to buy these expensive clothes since she only wears them around five times a year. 

Meron Admasu shares Tsega’s opinion. She works at Merylee Bridal at Getu Commercial Center on African Avenue, as a sales person. The shop she works at rents bridal gowns and clothes for brides and bridesmaids. But it is rare that people come to rent clothes for occasions other than weddings.

Business owners like Mimi at Shiro Meda are trying to make rentals go smoothly by preparing a contract to govern the transactions. The contract states the price for rent, description of the clothing, amount of money deposited as a guarantee and the penalty for any delay as well as compensation for damages. Both parties sign the contract at the time of the transaction. With the signed contract customers are required to deposit their original identity card as well.

If there is damage to the clothing, the business people will deduct what it costs to repair the damage from the money deposited as a guarantee. “We withhold a certain amount of money which we consider to be enough in case of damage to the clothing,” Mimi said. The renting process around Bole is almost similar to that of Shiro Meda except only modern dresses are available that were originally made for weddings (clothes for best women) are rented for other occasions as dinner dresses. The price for renting one dress ranges from 500 to 1,000 Birr. Money that will be deposited as a guarantee ranges from 1,000 to 1,500 Birr. The damage will be repaired by the customer or money will be deducted from the guarantee. For each day of delay 10Pct of the rental amount will be deducted as a penalty. 

In fact, renting these types of dresses is relatively more profitable than renting traditional clothes since traditional clothes are easily damaged and cannot be rented when they are, thus it limits the number of times they can be taken out. The risk is higher when it comes to renting traditional clothes because one piece of traditional clothing can only be rented two or three times without washing it. Since their rent goes down after they are washed, Mimi simply brushes newly rented traditional clothes to make them look tidy and rents them at the maximum price. After the clothes are washed their value will dramatically fall, because they will look worn out. So the current business is to sell these clothes after they are washed for a maximum of three times. 

Renting consumer products is nothing new, and has been the basis for viable business models in the United States and the rest of the world. However, renting clothes is something that only materially cash strapped people would engage in. Experts suggest that the new trend in Europe and US, where the economy has slowed down in recent years, demonstrates companies’ attempts to reconnect with lower income consumers, who increasingly rely on renting.

The same concern is also echoed by many business owners in Addis Ababa. For them, renting clothes isn’t a new business model but it has received a major boost recently. Consumers such as Tsega are increasingly buying into the idea, as their fixed income coupled with the high rate of inflation drives them to think outside the box and with a focus about longer-term ways to save money.

56 comments

  • Scotttob

    best place to buy generic viagra online
    viagra without a doctor prescription
    viagra billig online bestellen
    viagra no prescription
    what is the best online pharmacy for viagra

    Scotttob Wednesday, 20 September 2017 21:00 Comment Link
  • Williamsar

    fda approved canadian online pharmacies
    Canadian Drugs
    canadian pharmacy
    Canadian Online Pharmacy
    canadian online pharmacy

    Williamsar Tuesday, 19 September 2017 09:49 Comment Link
  • AndrewBot

    buy cialis super active
    cialis online pharmacy
    buycialis.eu
    cialis canada
    real cialis pills

    AndrewBot Sunday, 17 September 2017 16:13 Comment Link
  • RickySpuct

    cialis and viagra online
    viagra 100
    get viagra new york
    viagra 100mg
    buy viagra pfizer

    RickySpuct Saturday, 16 September 2017 18:36 Comment Link
  • RickySpuct

    buy generic viagra online without rx
    viagra 100mg pills
    viagra 100 mg or cialis 20mg
    viagra 100mg
    se puede comprar viagra en chile

    RickySpuct Saturday, 16 September 2017 16:46 Comment Link
  • Patrickprump

    come funziona cialis 20 mg
    viagra online
    buy viagra online
    best site to buy levitra
    cialis online pharmacy
    cialis buy
    is it legal to buy viagra online in australia

    Patrickprump Friday, 15 September 2017 21:34 Comment Link
  • LouisSeaps

    is there a pill like viagra for women
    viagra online
    buy viagra
    how often can you take cialis 5mg
    cialis buy
    cialis online pharmacy
    sildenafil medana 100 mg opinie

    LouisSeaps Friday, 15 September 2017 09:40 Comment Link
  • MichaelDon

    viagra without a doctor prescription usa
    best price on cialis 20mg
    cialis over the counter

    cialis reviews by men
    non prescription cialis
    generic cialis for daily use

    MichaelDon Friday, 15 September 2017 07:41 Comment Link
  • MichaelDon

    where can i buy cialis
    usa pharmacy cialis
    cialis cost

    generic for cialis daily 5 mg
    cialis for bph reviews
    cialis without a prescription

    MichaelDon Thursday, 14 September 2017 14:36 Comment Link
  • RonaldAmold

    how to get off hydrocodones
    rehab addict
    how to get off oxycontin at home
    rehab addict
    best way to deal with opiate withdrawals

    RonaldAmold Saturday, 09 September 2017 05:45 Comment Link

Leave a comment

Make sure you enter the (*) required information where indicated.Basic HTML code is allowed.

Latest News

Ethiopia to Host the 4th International Coffee Conference

Ethiopia to Host the 4th International Coffee Conference

Ethiopia is set to host the 4th International Coffee Conference from March 6 – 8, 2016 in Addis Ababa at the United Nations Conference Center. Previous conferences were held  in England in 2001, Brazil in 2005 and Guatemala in 2010. Read more

Most Popular

  • 1
  • 2
Prev Next

The White-Box of Ethiopian Agriculture

The agricultural sector remains our Achilles heel, nonetheless, we remain convinced that agricultural-based development remains the only source of hope ...

Read more

For Whoever Has, to Him Shall be Given …

As the Ethiopian government seeks to transform the economy into one that’s rooted in manufacturing, the simplicity for local investors to access finance...

Read more

Commentary

  • 1
  • 2
  • 3
Prev Next

Shooting in the Dark: The Anomalies of Headhunting

The war for ‘heads’ – also known as talent – has been raging for many years and the manner headhunters ‘poach’ people is getting tougher ...

Read more

Understanding Chinese Investment in Ethiopia A Critical Evaluation of the World Bank’s “Chinese FDI in Ethiopia” Survey

The World Bank country office in Ethiopia, apparently in response to the request by the government of Ethiopia, has conducted a survey of...

Read more

Mitigating Growing Income Inequality: What Needs to Be Done

Rising income and wealth inequality in many countries around the world has been a long-term trend for three decades or more. But the atte...

Read more

View Point

  • 1
  • 2
  • 3
Prev Next

Delivering Life Insurance: The Untapped Market in Ethiopia

Modern insurance transaction in Ethiopia was started by an Egyptian Bank in 1905. According to Ethiopian Chamber of Commerce there were 19, 33 and 40 insuran...

Read more

Headache When a Key Personnel leaves a Company in the Financial Sector

The financial sector in Ethiopia has undergone considerable changes in recent decades. The dramatic rise of new market players into the sector has vividly al...

Read more

Women and the World Economy

In many countries, public debate about gender equality focuses mainly on women’s access to top positions and high-powered career opportunities. But the “glas...

Read more