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,

Rent the Runway Goes Pop-Up

If you're shopping for a gown for next week's Inaugural Balls, you still have time to visit Rent the Runway's pop-up shop at LivingSocial in Washington, D.C. (at 918 F Street). For an $8 fee, you get a personal consultation with a stylist, a tote-bag, and time to browse the most popular high-fashion dresses and accessories for immediate rental.

Rent the Runway is one of a growing number of rental sites where men and women can have temporary use of clothing, diamonds, and other high-end items for a reasonable price.

Rent the Runway will send your choice of clothing and accessories to you by mail (in two sizes to ensure proper fit). You also get return postage paid, all at a rental fee that's a fraction of the selling price. Want to try a new look or a new designer? Rent the Runway offers an affordable solution. And it's social, with 141,000 Facebook likes plus 34,000 Twitter followers.

TechCrunch calls it "the Netflix for designer clothes." These technophiles are especially enthusiastic about a new tool that allows users to "Find Women Like Me" and see how fashions would look on someone of a similar height, weight, and build.

Fast Company says that Rent the Runway is "servicizing" the product--providing online access to feel-good fashion experiences that will impress friends. It's not a purchase, it's a service.

Rental Model Goes Upscale

Want a piece of fine art to spruce up your walls? Click over to Artsicle, where for $25/month and up, you can rent (or rent to own) a painting or other art for your home or office. Decorative wall art is a $10 billion business--think posters, mirrors, and the like--and Artsicle aims to capture a share. Museums like the Seattle Art Museum also rent fine art.

Or how about renting fine jewelry? Adorn is offering diamond necklaces, earrings, and bracelets with or without precious stones, delivered and returned via UPS (below).

Rent the Runway offers top designer clothing for rent, a new approach to the old problem of what to wear for an evening on the town, Sweet 16, special birthday, or to a wedding. Bag Borrow or Steal rents luxe handbags, jewelry, sunglasses, and watches. Montana Rader rents designer shoes and jewelry...the list goes on.

These and other rental businesses illustrate how the business model of renting is moving upscale into nontraditional categories and putting high-end items within reach for a rental fee, rather than by buying. What categories will be next?