BUSINESS MODELS

Netflix for fashion – just move your closet into the cloud

Mary Doyle models a Giambi, bordeaux fur vest at her home on Fri. March 18,  2016, in San Francisco, California. Doyle has been using Rent the Runway an online business that rents designer fashions for special events. Photo: Michael Macor, The Chronicle

Would you like to dress up for  your job interview, or your next trip to New York City, the Bahamas, or Northern Norway? If so, you would probably need to renew part of your wardrobe. And you would use the clothes most likely for a short time – say, just a day or so.

SOLUTION: Here is a solution:  Just rent clothes for 10 percent of the retail price! How then about not having to buy clothes for a one-time occation?

Rent the Runway is an online business that rents designer fashions for special events and everyday wear. Rentals cost about 10 percent of the retail price for four days, plus shipping fees. Also, if you like the items, you may buy them at a discount.

Here is a main point, I think: “People now are more interested in using their money for experiences than things”.

OK; many such companies have overestimated the market. In some cases, they came too early to market.

Besides apparel, accessories is a hot sector: FreshNeck for ties; Rocksbox for jewelry, for example.

“Think about what’s happening in Milan, or Tokyo, or now everywhere from Cape Town to Mumbai – being able to access completely new fashion designers or trends that are really hard to find locally is really attractive”. 

So; here is another great example of the on-demand economy!

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