RENT THE RUNWAY
Rent or Resale - 750 Designer's Looks
Those out of reach, high-priced designer clothings were too pricey for many until Rent the Runway came on the scene. Founded in 2009 by Jenn Hyman and Jenny Fleiss, RTR was a “shared designer closet,” giving women the opportunity to rent an item without breaking the bank. In the early days, the two entrepreneurs pitched the idea to designer Diane von Furstenberg as a rental option for her brand’s website. The story goes that Furstenberg suggested they start a multi-brand retail site. And so they did, and Furstenberg joined as one of the company’s first designer partners.
Today, the company has grown to offer a range of clothes from high-end to casual wear carrying over 750 designers. The designers include some of the most recognizable names in fashion: Gucci, Fendi, Jason Wu, Ralph Lauren, Oscar de la Renta, Stella McCartney, and more. RTR has also introduced emerging talent, giving these designers a platform and the tools to help grow their business.
As the company has evolved over the years, they feel “we’re reducing negative environmental impacts through rental.” Maybe so, but they recently announced they’re seizing an opportunity in the resale market. According to GlobalData, the resale market in the U.S. is expected to top $33 billion by the end of the year and double that by 2024. Customers will be able to buy used designer clothes from RTR in addition to renting them. No membership will be required as Rent the Runway looks to broaden its reach and target the consumer steering away from fast fashion. With this new endeavor, RTR is positioned alongside other established resalers such as Poshmark, Thred-up, and The Real Real.
The pandemic forced RTR to shut down its brick and mortar, overhaul its subscription plans and take on the resale market.” We couldn’t have foreseen the global pandemic and the resulting fight for our survival,” said Jenn Hyman, its co-founder, and CEO. “Today, Rent the Runway has emerged stronger.”
A recent survey found that 74% of Rent the Runway customers said they will likely buy secondhand in the next 12 months; when asked specifically about buying secondhand from RTR, that number jumped to 90%. Rent the Runway functions like a retailer, buying collections every season and introducing new products every month.
Rent the Runway filed for an initial public offering earlier this month. The IPO revealed a slump during the pandemic. RTR’s revenue dropped nearly 39% or $157.5 million. The company will list on Nasdaq with the ticker symbol “RENT.”