Rent-the-Runway subscribers can browse luxury fashion online and rent attire. Its accessories, handbags and jewellery come from over 750 designer brands.
The business meets a consumer need of wanting ‘new’ styles and since the goods are returned after a month, is arguably more responsible environmentally.
The company was founded in 2008 and has around 120,000 regular subscribers each paying between $89-199 a month.
Last week the company IPO-ed on the Nasdaq at a jaw dropping $1.7b valuation. 2020 revenue was $157m.
Note Rent the Runway is not profitable, and during the pandemic even laid-off staff as subscribers dropped, a trend that has since reversed.
Rent the Runway is not the only game in town, others include Nordstrom Trunk club and Haberdash.
The company is an example of Do-Gooder capitalism, a trend that is becoming more and more prevalent.
Do Good brands need to watch out though. One commentator on the WSJ noted wryly.
A company who says it’s not about the money as they are launching an IPO on the NasDaq? It’s ABSOLUTELY about the money.WSJ comments section