Rental is changing the fashion landscape – here’s how logistics can help

More style, for less 

With the rising cost of living, many consumers are looking for ways to feel fabulous that won’t break the bank. In the US, fashion rental is already a well-established concept thanks to industry pioneers, including Rent the Runway. Offering both one-off rentals and a subscription service, it allows millions of users to mix and match their wardrobes without making a big investment. And many similar platforms have sprung up across Europe.  

Companies like Circle Closet, Something Borrowed, LENA Library, Rerun.rent and The Collectives have been delighting consumers with high-end fashion on demand for years. And more established players are also entering the rental business. For example, The Bijenkorf, the largest premium department store in the Netherlands, now offers shoppers the opportunity to rent an outfit from their favourite designers with its Style Studio.² 

Succeeding in rental 

With a clear consumer appetite for fashion rental services, now may be the perfect time to explore the potential of this innovative model. However, there are several factors to consider before launching a rental offering. So, what does it take to develop a winning fashion rental formula? The key is to create a truly customer-centric user experience. 

From the moment a customer clicks on your website or enters your store, they should feel confident that they’ll find exactly what they’re looking for. This means setting up your operations to prioritise choice and convenience. Step one? Intelligent inventory management. There’s nothing more frustrating for a customer than discovering that the item they wanted to rent is out of stock. And if this happens repeatedly, they won’t come back. It’s therefore vital to optimise your logistics to ensure that this doesn’t happen by tracing the location and status of your inventory in real time. 

Robust data collection and analysis can help. Working with your logistics provider, you can gather detailed data to build up an accurate picture of your operations. This allows you to track trends and identify the most popular items. You can then stock up on these to reduce the risk of shortages. Of course, trends may be linked to seasonal events, such as the winter holidays, and you should adjust your inventory to reflect these changes. 

Deliver a seamless experience 

How customers receive and return items can also play a big part in creating a positive experience. Renting should be just as convenient – if not more so – than regular online shopping, so be sure to set up delivery and returns to minimise friction and maximise flexibility. In the US, for example, popular rental companies such as Nuuly and BNTO provide customers with a variety of options for returning rented items. They can ship them for free with pre-printed return labels, drop them off at one of the partner stores in their area, or schedule a free home pick-up. 

Prioritise customer service 

Sizing is another persistent problem in fashion e-commerce, and it’s often difficult to tell whether or not an item will fit. You need to ensure that customers have the best chance of getting it right the first time. One way to do this is to integrate customer feedback about items into the e-commerce experience. This will give renters a better idea of what size they’re likely to need. You could also explore high-tech solutions such as virtual try-ons. And if customers have a problem with their order, it’s important that your customer service team is as responsive as possible to get it resolved quickly. 

Never compromise on quality 

The most important part of any successful fashion rental business is the ability to quickly clean and repair items so that customers always receive them in excellent condition. This requires a highly efficient and coordinated operation, especially given the complex nature of many designer pieces. Advanced techniques such as ozone cleaning can bring the highest standards of cleanliness to even the most delicate items. And when it comes to repairs, skilled specialists – like those at Bleckmann’s Renewal Workshop – can efficiently restore garments and accessories to like-new condition.  

But what happens when rented garments are deemed to have reached the end of their commercial life? The answer doesn’t have to be landfill. When a garment is no longer in good enough condition to be rented out, there is still an opportunity to further extend its life via resale. That’s what Rent the Runway did when it teamed up with fashion resale platform ThredUp to launch Revive – a collection of their ‘retired’ designer clothing that’s available for sale at discount prices. This is an effective way to reduce their waste footprint and provide an exciting shopping experience for customers.   

Unlocking the value of rental 

As well as unlocking a new revenue stream for brands, the rental model is a powerful way to build deeper relationships with your customers and extend your brand’s reach. Shoppers get instant access to items that they might not otherwise be able to enjoy, and they don’t have to worry about the clothes taking up wardrobe space. This fun and ‘guilt-free’ shopping experience is key to the joy of renting. And, if you can get the logistics right, it's a great way to keep consumers engaged with your brand over longer periods. 

There are also waste reduction benefits. Rather than buying an item and wearing it once, users can simply rent it – helping to disrupt the ‘take-make-dispose’ model of fashion. In short, you’re reducing the need for new production, helping to decouple business growth from increased resource consumption. This can be a major attraction for environmentally conscious consumers. And as sustainability in fashion becomes increasingly important, rental can be a valuable addition to your business model.