Rent The Runway Expanding Into Fashion Resale Market To Build Back From Pandemic Loss
On Wednesday, Rent The Runway announces the major expansion in the fashion resale market. It is anticipated to be one of the biggest evolution for the fashion rental platform.
With the major change in the business, the customers will be allowed to buy used designer clothes from the platform, whereas renting is also possible. It doesn’t require any membership since the platform has broadened the reach and allows shoppers to avail extensive yet feasible entry points. However, Rent the Runway used to pay to the members who were able to buy gently used Rebecca Minkoff dresses, Lululemon leggings, Tory Burch tops, and best bob wigs women from the business at a huge discount.
How Rent The Runway Is Clawing Back?
Well, we all know how global pandemic has affected businesses to a great extent. Rent The Runway is also one of those victims, which has suffered a lot due to the COVID-19. Like any human hair extensions manufacturer and other famous fashion companies, the business also decided to come up with the change that brings a vital change in the sales and its growth.
The changes in Rent The Runway are occurring because of the effects of the COVID-19 pandemic. Since people in countries where COVID-19 was at its peak were forced to stay at home, businesses like this one were making fewer profits than usual. Not only this, but people controlled their spending on buying outfits for the offices, vacationing, weddings, and other occasions of the year. Hence, Rent The Runway was also forced to reduce the investments. For instance, it immediately controlled the operational costs by shutting the retail stores and laying off the staffers.
Last September, the business took another turn. It simply overhauled the subscription plans and optimized the options to the ones that seem effective and simple.
According to the company, starting up with this resale marketing offer yields business growth while it is a complete realization of the value proposition. Also, the company is surprised to see intense growth in the business. It further added in the interview that Rent The Runway witnessed twice as many customers as before the pandemic. Indeed, people’s demands have come to reality. They urged for sustainable fashion solutions and the business is providing them with what they asked for. The amazing change in the business impacted the buyers’ appetite. They now wish to get secondhand clothes and add them in their closets.
The Bigger Is The Better – Business On The Show
The competitors of the business are now concerned about the biggest expansion of the company. Already established big names in the resale fashion market are looking at the position of their competitor, i.e. Rent The Runway. Some of these include ThredUp, StockX, Poshmark, and The RealReal.
As per the statistics and prediction of the Global Data, the U.S. will witness a huge resale revenue of worth more than $33 billion by the end of this year. However, the drastic change will occur by 2024 which will reach $64 billion.
According to the analysts, the business can see more value proposition if it aspires to focus more on clothing, home goods, accessories, and something more compelling like that. It will definitely let the business come out of the health crisis.
Well, we can see how the business is initiating a change in concept for buying secondhand clothes and accessories. Any cheap gray wigs supplier or branded clothing companies will think of the competition differently so that they can also come to the same position as this one.