Renting Clothing Is Still in Fashion

Back in 2009, Rent the Runway was in the vanguard of the clothing rental business model, offering designer-branded, special-occasion fashions at a fraction of the purchase price, to be worn for a few days and returned. Since then, it has expanded to stores and stores-within-stores at Neiman-Marcus. And gained competitors. And it offers a wider range of products like fashion accessories.

The rental/subscription model is increasingly popular as consumers avoid buying and instead, enjoy wearing in-style clothing for a limited time (a few days or a month). Of course, startups are looking for niches and differentiation so they can fine-tune an effective positioning.

For instance, Le Tote offers clothing by monthly subscription, selected by personal stylists for your consideration. Just check the "tote" to see what's being recommended, then rent, wear, return, and repeat. No shopping, no laundry, hundreds of styles/brands to choose from, and no unworn styles sitting in the back of your closet with the tags still on.

Interestingly, fashion brands that do business with these and other rental startups gain access to feedback that helps them better satisfy their customers, rental or purchase. Le Tote notes what happens to garments that are rented and returned, re-rented and returned. What parts wear out, for instance. And tells the manufacturers so they can do better. Win-win-win (for manufacturer, rental service, and--of course--the next customers.

Other product categories are represented in the rental-subscription business model, too. More on that soon,