How Brands Can Navigate — and Benefit From — the Billion-Dollar Rental Market

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There are many obvious benefits to renting clothes — for shoppers and brands alike:

Over the past few years, Marie Kondo has inspired people across the globe to only keep things that "spark joy." Going into the new decade, we see this phenomenon reflected in a general shift towards more conscious consumption — which can feel at odds with rapid trend cycles and the desire for constant newness that's come to be associated with social media.

"I remember when we opened our first store, several customers came in because they had already rented from us on RTR and had fallen in love with our brand," she tells Fashionista. All of this, plus customer ratings and reviews, can give brands greater insight into why customers like a certain item — or why they believe that it's not worth the price. That can then, in turn, help inform or even modify a brand's product design or fit.

Of course, with so many moving parts, there are some drawbacks to this distribution system. As we saw with Rent the Runway's supply chain crash back in September, even this centralized model has its limits. Plus, there's bound to be some human error in a giant reverse-logistics machine — a customer’s order might contain the wrong item or color or size, a delivery might not arrive on time. This is where decentralized, peer-to-peer models offer a solution.

In August 2019, Bloomingdales became the first major department store to launch an in-house rental subscription service, called My List. Denise Magid, EVP and general merchandising manager for ready-to-wear and accessories, believes that rental is an organic evolution for the wholesaler, noting that her team is "able to leverage our vendor relationships to create a brand matrix that delivers on our customers' needs.

 

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