The Netflix business model is seeping into every industry. From books to video games to even high-end bags. Well soon you will be able to get the latest DVF wrap to go with your rented Louis Vuitton. Two Harvard Business School graduates, Jennifer Hyman and Jennifer Caret Fleiss, are taking on an already proven business model and mixing it with high fashion, creating a new Web site and service called Rent the Runway.
Rent the Runway presents a great opportunity to fashion brands to expand their business, but it presents unique challenges to the HBS grads. “In challenging economic times, it’s important for brands to reach a larger audience and age demographic that you wouldn’t normally because of price,” said Karen Scheck, president of Lela Rose in an interview with The New York Times, “This is a great way to do it without jeopardizing the brand.”
Meanwhile Rent the Runway has some obstacles to jump. The first they have hurdled beautifully. They have managed to maintain an aspect of exclusivity to their Web site allowing members to join via invitation only or having to wait in the cold to get on their membership list. The last obstacle is involves the numbers. Seasons come and go. And those seasons are expensive. They are going to have to take a gamble on some pieces estimating whether the dress will make a return in rentals comparable to what they paid for it. No doubt customers, who have nothing to wear, and designers, who have wares to sell, will welcome this business. The million dollar question is can it be sustained and what will they think of next, designer dogs by mail?
{ 6 comments… read them below or add one }
One solution is to get designers to just loan the business the dress in an effort to promote their brand.
Very good idea. I wonder if Christian Sciriano is going to do that. Definitely some Parsons grads should look into that.
Jillian
Really like this idea … especially since my Black and White Ball is on Dec. 2nd and I’m w/o garb. I’d like to know the membership requirements, the average rent price on a dress, and I’d also like to view some dresses on the website. I feel like the website is lacking in information and direct member feedback. It’s almost too exclusive. Thanks for finding this company, Jillian!
Hey Kira,
The New York Times reports that the rentals can run from $50 to $200 for a four-night loan. The Web site isn’t providing much since they are really running on that invite only. I think it will open up more once they figure out how to accomodate their current clients and do so in a smooth manner. Hopefully that happens before the Black and White Ball.
Jillian
Let me know when they come out with “Rent a Body Double”. I could really use a vacation with my rented wardrobe without having to technically take a day off. What will they think of next???
I’ve come up with nothing. But, if you come up with a good rent by mail business please let me in on the ground floor.