Rent To Runaway

RENT TO RUNAWAY I
Hyman and Fleiss met in Harvard Business School (HBS) MBA program. Hyman
commented, "I needed a partner that I added my skills. "We produce $ 149 billion retail sales
in US $ 2008 in 2008. " We are missing "assets of fashion branch experience We
approachedIthe industryIwith a freshIperspective onIhow to transform it. Fleiss and Hyman are
DVFI (Von Furstenberg`s) Companies) andIother designersIrent dressesIthrough theirIown
website. The Designers are responsible for website upgrades, rental dress offerings, and
acquisitions Customer, RTR Transaction fee. Heyman commented: "From the beginning, I have
the opportunity to build my own website. “This conversation made it clear that we needed to
buyIdresses directlyIfrom designers andIdevelop theirIown rental sites.
Designers bear the costs and risks ofIbuilding their own rentalIbusiness. “It offers the
potential to increase profitability over time, and it is imperativeito build a customeriexperience
and brand thatiencourages womenIto try thisInew clothing rentingIbehavior,” said Heyman. To
prepare to meet more designers, Fleiss and Hyman have researched other fashion rental
websites. Wear Today, Gone Tomorrow (WTGT) was launched in March 2009 by a former
editor of Women`s Lifestyleimagazine and rentedidresses,Itops,Ijacketsiand skirts.
WTGTicustomers paidiabout 90%ioff the retailIpurchase priceIof aniitem foriweekly rentalsiand
70% offifor monthly rentals. Fleiss and Hyman weren't impressediwith theiquality and inventory
of the WTGT website, butIthe site was newIand improvements were available.
Fleiss said: "Avelle started with a selection of top brands, but instead of buying directly
from designers, we first bought them through sample sales [retail events that offer designer
goods at low prices] andiother discountistores. Itialso meantithat Avel paidithe retail price
foritheir stock and bought outdated items at theiend ofithe fashioniseason. Instead of selling the
RTR concept, they consulted with designersiand carefully listenedito concernsiabout cannibalism
and brandidilution in the retail market. Heyman recalls: "Our goal in every conversation was to
listen to the dissenting opinions of designers and retailers and to be able to create services that
are synergistic with their needs, and more than using meetings.
"Initially, we focused on the excellent prices that RTR can offericonsumers. However,
after hearing about designer concerns about cannibalism in the retail industry, we positioning
RTR as a newicustomer acquisitionichannel, introducing designer brands to young women and
giving them a chance. To assess customer demandifor clothing rentals, theico-founder
invitedi140 womenito two markets. Fleiss and Human rented or bought 130 dressesifrom 15
designers, with retailiprices around from $50 toi$1,500. Women were encouraged to try on a
mandatory $ 4 premium in addition to dresses ranging from $ 35 to $ 75. In theifirst exam, 34%
ofiHarvard womenirented dresses. "I also wanted to see if the rental experience was social in
nature, so Iiinvited womeniin groups and targeted groups like two prestigious undergraduate
clubs [Sorority] and dance teams. He turned to say, "I look hot!" And I told Jenny, "It's up to us.
" At the second trial at Yale University, womenicould see the clothes butinot try themion. Fleiss
andiHyman thaniadjusted the range of clothing to focus on the trendy styles and sophisticated
classics that were popular at Harvard trials. At Yale University, 75% of women rent. Rent
clothes online. In the process, 5% of women rented.
To measure customeridemand for rental dresses, theico-founder invitedi140 women toitwo

markets. With the participation of the designers andithe initial funding, RTR began buying
clothing. Highman And Fries were considering hiring clothes from designers through profit
sharing They agreed, butithey said designers iprefer direct purchases by RTR. Mostidresses
were purchasediby designers atiwholesale prices (on average about 40% - 50% of retail prices) in
the sameitime that luxury departmentistores buy seasonal inventory. At Gold's suggestion, RTR
first gave department stores a few weeks of sales and then offered a new style of rent. 98% of
RTR's customers rented brands they never owned, and 90% reported purchasing after renting.
The team wasiencouraged byithese results, ibut not yetidemonstrated that womeniwould
renticlothes online. In the process, 5% of women rented.
To assess customeridemand for clothing rentals,ithe co-founder invited 140 women to two
markets. With the participation of the designers andithe initial funding, RTR began buying
clothing. Highman Fries was considering hiring clothes fromIdesigners throughIprofit sharing,
but decided that designersIwould prefer to buy directly through RTR. To create a buzz before
launch, RTR co-founders share plans with industry insiders and An influential fashion blog like
Refinery29.
PR agencies have spent thousands of dollars doing pre-launch work, but they can take
advantage of much more than the efforts of their networks and advisoryIboard members. RTR-
GmbH released a beta version on November 2, 2009. Through beta testing, the team felt a
strong demand for rental dresses and the importance of waiting lists to manage inventory status.
The teamIalso learned fromIthe beta test thatIwomen asked manyIquestions aboutIhow RTR
works andIstrongly needed styling guidance.
The RTR team expected it to be released in a flashy storyIin Vogue magazine, but the
newsIof the RTR betaItest was "tracked" by fashion industry news website Fashionista. com and
later published Widely. If she was lucky, the New York Times economic reporter was an RTR
beta user and encouraged her to write her story. When RTR was launched, theIcompany’s email
database haveI30,000 names and 800 dressesIin 160 styles from 30 designers. rent to runaway
can maximize their marketing for the middle class in society. and can target young rising
influencers or celebrities. Procurement of promos at certain times such as Valentine's Day can
also be applied to attract customers. don't forget to always pay attention to the maintenance on
each item that is rented and always regenerate the item collection
Market segmentation also needs to be considered considering that the services offered can
only be accepted by people in big cities who pay attention to fashion interests. so it's impossible
to rent to runaway spending time to reach new customers in remote areas. an understanding of
the culture and customs of the local community can also be a consideration for the collection of
items to be offered. always upholding the norms of the local community is also important for
sustainability and good relations with the community.

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RENT TO RUNAWAY I

To measure customeridemand for rental dresses, theico-founder invitedi140 women toitwo

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