From Spotify to Netflix to even Uber, our society today is fairly comfortable with renting goods and services for a limited time and then later returning them. In this sense, we only pay for what we know we will consume and use up, and we usually save money and resources through these actions. With this in mind, it comes to no surprise that in the 21st century women working in business may also want to rent their work apparel. In the Washington Post article, written by Sarah Halczak, it explores the idea of this kind of "sharing economy" being popularized today.
According to the article, the company Rent the Runway, created 6 years ago which allows customers to rent expensive and brand name ready to wear gowns and formal attire, recently launched a new app named Unlimited that lets users "pay a monthly fee of $139 to receive three items at a time that they can keep for as long as they want." This idea is very reminiscent of netflix during its earliest days. I think that this is an interesting and innovative idea for not only working women but also other consumers alike. Although it may take away from some of the sales of the high end department sales and brands that people can purchase in shopping centers and elsewhere, this application and online resource will allow consumers to better allocate their time and money so that they can be more productive in other areas of their life. On of the problems that I do foresee for the app is how it will compete with other similar programs, however, rent the runway is already rather well known and probably has a strong customer base through that asset. Also, the owner of the app stated that the company, "deliberately priced Unlimited to deliver an 'extremely healthy [profit] margin' from the get-go instead of trying to
lure people with a lower introductory price." As an aspiring finance major, I am interested to see how this app will impact the way in which modern business and working women fill their closets in years to come.
Link: https://www.washingtonpost.com/news/business/wp/2016/03/23/the-meaning-of-rent-the-runway-expanding-from-fancy-dresses-to-everyday-clothes/
I would be curious to see how something like this may work for men's clothing too. In particular, for suits that may be needed. Some men may not care too much about own these specific clothes, and just want something they can have available for work and be able to get new suits without going through the hassle of buying one at a store, or the expense of buying one they may not wear that many times. Thanks for the post.
ReplyDeleteThis was a really interesting read. The concept behind these businesses is extremely rational. Clothing goes out of style every season and sometimes we only need clothing for a certain event. So why would we purchase these items? I believe that in the near future there will be many more companies similar to Rent the Runway and Unlimited. It would be interesting to see how these would impact the fashion industry economically. In addition, it is strange that Unlimited did not lead in with an introductory price. I wonder if this is due to Rent the Runway's strong customer base or some other reason.
ReplyDeleteI wish I had something like this when I was in high school and had to go out and buy a prom/homecoming dress that I only wore one time. Those dresses still just sit in my closet and I constantly need outfits for specific events, so this is a great idea.
ReplyDeleteThat ideas is awesome, kind of like the dollar shave club or tieflix. That is probably where consumerism is leaning towards
ReplyDeleteI never really thought about how the demand is for renting goods and services for a limited time. I would like to see how successful Rent the Runway will become. I am sure we are going to continue seeing products being offered in the way.
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