FEATURE
WITH THE CONVENIENCE OF
RENTABLE FASHION, PATRONS
ARE ABLE TO SAMPLE A MORE
ASPIRATIONAL LIFE.
Normally, it would be prohibitively expensive for
middle-income consumers to even think about
owning a premium or luxury brand. But with the
convenience of rentable fashion, patrons are
able to sample a more aspirational life. In fact,
this alone is one of the top four reasons that
consumers report drives them towards rentable
clothing. This has worked out fairly for brands as
well—research from Nottingham Trent University
shows that luxury apparel and fashion products
gain more exposure through rentable fashion,
which makes their brand equity more valuable.
THE CHANGING NATURE OF
CONSUMER ECONOMY
Traditionally, the fashion industry is a highly
differentiated space that exhibits a diverse,
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I APPAREL I
December 2019
growing spectrum of brands that offer everything
from inexpensively made, fast-fashion consumer
goods to highly exclusive, premium-priced luxury
items. As a result, this has led to consumer
segments that are fairly divergent from one
other, with occasional crossovers. The sharing
economy, in contrast, has blurred these
boundaries and changed traditional consumer
demographics by attracting a much larger variety
of customer profiles.
Today, middle-income consumers do not have
to slowly save up and delay their gratification
for luxury goods. Instead, they can indulge
themselves and rent these products whenever
they want. With subscription services as a key
element of the sharing economy, consumers
can find affordable ways of ‘temporarily owning’
everything from high-end couture for a
special occasion to relaxed casuals for weeks
or even months, depending on their needs
and preferences.
Rent the Runway is a prime example of
success in the world of rentable fashion. It
was the first American company to offer a
subscription-based fashion service in 2009. This
was just after the Great Recession, which was
a decisive factor of its success. The company
enjoyed a first-mover advantage that allowed it to
grow rapidly in a relatively short time by catering
to the growing needs of a new consumer group.
Today, Rent the Runway has successfully made
the shift from e-commerce apparel to high-end,
rental luxury clothing. Other companies such as
Le Tote, Gwynnie Bee, Tulerie, and Armoire, have
also followed suit, with each having a slightly
different ethos.