How to keep up with the changing trends? Rent the runway, don’t own. Read more on why Rent the Runway is betting on a new subscription model.

New Investment

Headquartered in NYC, Rent the Runway has changed the way many women dress and disrupted retail in the US. Now they are investing heavily in a new subscription business model after securing 200 million in a debt loan. ‘With the new funds, Rent the Runway plans to expand the selection of clothing available to subscribers and invest in its logistics operations, which could improve the speed of sending out new orders and dealing with returns, according to the company’s Chief Financial Officer Scarlett O’Sullivan.’

 

Subscription = Sustainability?

Rent the Runway offer more value to their customer than traditional retail. By shifting consumer habits to renting it means the value is shared amongst their users. By further investing in their subscription business Rent the Runway will automate the continual renewal of your look.  Wearers are able to pay a fraction of the retail price to keep their wardrobe current.  Garments are thoughtfully curated, worn and kept in circulation. This is an example of a retail business tapping into consumer sentiment and by using basic economics are able to pool and distribute resources more efficiently.

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