Women’s clothing for rent – a new business idea from the USA
Two entrepreneurs from New York in four years were able to prove to the whole world that women in business are able to achieve no less heights than the stronger sex. Rent the Runway company is estimated by experts at $ 1 billion, this project is a fusion of logistics, fashion trends and modern technologies.
For the first time with her business project Rent the Runway, 29-year-old Jennifer Hyman spoke to venture investment professionals in 2009. At that time, Jennifer was behind Harvard Business School.
Female business or clothing rental
The essence of the project was that Jennifer offered to buy fashion designer clothes in bulk and at wholesale prices, and then rent them out using the Internet, for one or two evenings, for a small amount.
At the moment when Hyman started talking about how often she would be able to update her collection of dresses at Rent the Runway, one of the experts could not stand it and asked a completely masculine question: “You are simply lovely and charming, and you probably don’t have a closet one dozen dresses! But why should others rent your clothes? ”
After five years, Jennifer remembers this story with a smile, but at that very moment she was not at all laughing. Indeed, a few weeks earlier, she managed to enlist the support of the six best US venture companies, who believed that her project “a common big wardrobe” could cost $ 50 million. So that you can appreciate Jennifer’s endurance and calmness (these qualities were useful to her more than once in the process of developing the service ), it should be said that she did not answer the investment specialist. She only clenched her fists and decided to build a logistical network worthy of respect and attention, which many developing, young projects will be able to follow.
Wardrobe from the “cloud”
The huge and large-scale company that was created by Hyman and her friend and business partner Jennifer Fleiss, certainly can not be called “charming and charming.” This is a business machine that works with a certain accuracy and streamlined speed.
In a cozy and comfortable office, which is located in southern Manhattan, about 300 people work. All of these people are indispensable components of a mechanism called Rent the Runway. Application developers and merchandisers, stylists and logisticians – all these people work so that everyone who wants to get fashionable and beautiful furniture for one evening can anywhere in the United States, without much bothering and thinking, literally with a few hand movements on the touchpad of the laptop get the desired thing to your own doorstep.
Female business or clothing rental
Jennifer Fleiss, as the person responsible for the development of the company, says with a laugh that the naivety and simplicity with which the girls entered the business helped build this business giant. Because if they knew from the very beginning how many difficulties and obstacles they would face in their way, they would hardly have decided on this business adventure.
The daily turnover of goods from Rent the Way is about 90,000 units (!) – just think about this figure – throughout the country, more than 65,000 people order their outfit for the evening, and some, and this is about 25,000, select jewelry for it.
More than half of the outfits, or rather 60% of dresses, return to the company on the same day. Mylar UPS envelopes for return shipments are used to transport clothing from the client to the lessor.
Envelopes go to a New Jersey company sorting warehouse. About 200 people work in the warehouse, who are involved in inspecting things, cleaning them, sterilizing jewelry and minor repairs of clothes.
By the end of this year, the company plans to move the warehouse to a larger room, with an area of about 15 thousand square meters. After that, both Jennifer, and Hyman, and Fleiss, will automatically become the owners of the largest dry cleaners in the country.
With their idea of renting clothes, Hyman and Fleiss turned out to be very popular in the service market. Modern young people do not want to spend hundreds of dollars on a one-time dress to go out, they are ready to wear a thing and pass it on to another, saving not only their own money, but also allowing another person to dress just as fashionably and beautifully, without exposing their own wallet to fabulous expenses.
Where to get money to start your own business? It is this problem that 95% of beginning entrepreneurs face! In the article “Where to get money for a business,” we revealed the most relevant ways to get start-up capital for an entrepreneur. We also recommend that you carefully study the results of our experiment in exchange earnings: “see the results of the experiment”
In essence, Rent the Runway service is a new format of the cloud service, in which instead of quick access to files and your own information you have the opportunity to choose and get the necessary thing, in the required color / size, etc. without going beyond your own home.