Nothing to wear? Rent it!
As the founder of a new rental startup, I've always been a fan of the Netflix model. I loved watching this company shake things up after years of complacency in the movie rental industry. I enjoyed the David and Goliath style competition that developed between nimble Netflix and monstrous Blockbuster. And I continue to be impressed by the innovations Netflix continues to push out. Maybe it has something to do with their unique corporate culture -- if you wanna peek, check out this fantastic Netflix culture presentation. Clearly, I'm an admirer. Which is why I was pleased to see a new startup applying this same simple model -- mail-order renting -- to another sector.
A new website, Rent the Runway (RTR) mixes Netflix with high fashion. Check out this great feature from last week's New York Times. Geared toward trend-conscious women on a budget, RTR offers dresses from A-list designers at a fraction of the cost. Rather than blowing an entire paycheck for one night out on the town, RTR provides options for single-use stylings that don't break the bank. Rentals run between $50 and $200 for four days of use. The concept is simple: find a dress you love, schedule delivery, wear it, drop it back in the mail. They even take care of the dry cleaning for you! The founders, who just finished the testing phase on Monday, were particularly smart with the roll-out of their product -- making it invitation-only, creating a sense of exclusivity and attracting 20,000 women to the wait-list. Very clever and perfect for the gotta-have-it mentality of the fashion world. I didn't expect any less from two HBS grads.
Like any startup, RTR has its share of challenges -- quickly changing styles, divergent tastes, covering costs for each dress, delivery fiascoes, sizing and fitting issues -- but I believe they've got something here. Reminds me of a couple other luxury rental companies I'm also a fan of, Avelle (formerly BagBorroworSteal) and BorrowedBling. The economics of renting make so much sense, and I think companies like these are opening up opportunities for the everyday person to enjoy the finer things in life. Kudos.
