Market study - Sales management and negotiation techniques - Rent the runway

Thèmes abordés

Rent the Runway (RTR), case study, sales management, negotiation techniques, democratize luxury, clothing and accessories, Netflix for fashion, clothing industry, sales strategy, online rental of luxury clothes, e-commerce, swot analysis, business model

Résumé du document

Rent the Runway (RTR) was founded in New York City in November 2009 by Jennifer Hyman and Jennifer Fleiss, with the idea that nowadays female consumers purchase costly products for the reason that they create a unique experience that goes farther than the price itself. Hyman observed a business opportunity; women who seek to have that experience also have budget and social limitation, since the clothes were used specifically for one occasion. For this reason, Rent the Runway has been established as an eCommerce business with a goal to democratize luxury in the U.S. by enabling millions of women the access to wear expensive clothing and accessories.

Extraits

[...] And for many potential consumers who are interested in luxury brands and are willing to spend more than in chain stores, but cannot afford to spend thousands on a single piece of clothing, it would be the perfect solution. In addition, for Polish women who pay more attention to fashion trends, but are also aware of how fast these trends change, renting products from Rent the Runway could be a good alternative for buying. Given the circumstances, a company like Rent the Runway has a potential in Poland and with prices adjusted to the market situation, it could become a very successful platform. [...]

[...] This is the Mission Statement of the company to “access to a new ownership”. This willingness can be explained with the creation of a new market segment on the clothes sale market. On their website, their actions and the positioning of the company is depicted by this sentence: “We're not disrupting an existing market. We're creating a new one.” Thanks to this innovation, Rent the Runway is the current leader of the clothes rental in the United States, its main market. [...]

[...] Forbes August.p Bloomberg Company Overview of Rent the Runway, Inc. [Online] Available at: http://www.bloomberg.com/research/stocks/private/people.asp?privcapId= [Accessed 26 March 2017]. Crunchbase Look up a specific company, person, investor, or event. [Online] Available at: https://www.crunchbase.com/organization/rent-the-runway#/entity [Accessed 26 March 2017]. Cubeyou Target - Rent The Runway Fans.[Online] Available at: http://customer-profile.com/apparel-and-fashion/clothing/women-s- clothing/rent-the-runway- customer-profile.html [Accessed 26 March 2017]. FOXBusiness Rent the Runway's Roots; Fashion, Tech & a Dress. [Online] Available at: http://www.foxbusiness.com/features/2016/08/22/rent- runways-roots-fashion-tech-dress.html [Accessed 26 March 2017]. KPMG Rynek dóbr luksusowych w Polsce, Warszawa, Poland: KPMG. [...]

[...] This market development seems to be successful for the company, with products which are luxurious. Then it exists a differentiation concerning the product, the price and the way that these products are sold to the customer. Strategic Options The first barricade to the business concept was the fact of endorsing the loss of ‘exclusivity' of each dress made by premium designers. Since the fashion model turns around the common & inexorable remark: wish I had this dress”, it helps the clothing industry toping up their revenues by adding (sometimes) a huge margin - related to the brand-value - to each item (even though the price of the selected item is sometimes a quarter of its actual retail price). [...]

[...] O'Connor, C Rent The Runway To Hit $100M Revenues In 2016 Thanks To Unlimited Service. Forbes June.p PitchBook Company Profiles-Rent the Runway. [Online] Available at: http://pitchbook.com/profiles/rent-the-runway-profile-investors-funding- valuation-and-analysis [Accessed 26 March 2017]. Rent the Runway Rent the Runway - About. [Online] Available at: https://www.renttherunway.com/pages/about [Accessed 26 March 2017]. Roberts, D Fortune.com. [Online] Available at: http://fortune.com/2013/12/30/holiday-party-dress-central-how-we-started- rent-the-runway/ [Accessed 26 March 2017]. [...]