Rent the Runway is usually generating its fashion subscription service accessible to more shoppers by adding a membership option of which costs less than $100 per month.
The brand-new York-based clothing service partners with more than 500 brands — such as Kate Spade, Oscar de la Renta in addition to Rebecca Minkoff — in addition to lets women rent pieces via its website in addition to a few physical locations, either on a monthly basis or strictly for special occasions.
The brand-new, less-expensive membership tier, called “RTR Update,” allows shoppers to choose four pieces via Rent the Runway’s selection of more than 0 brands every month, with free shipping, returns, dry cleaning in addition to insurance included from the package. The monthly fee is usually $89.
The company’s current “RTR Unlimited” tier is usually also being revamped, that has a cost increase to $159 via $139 per month. Current members, though, will be locked in at the lower cost “for life,” Rent the Runway said. This specific package allows shoppers unlimited rentals throughout the month, choosing via more than 500 designer brands.
“We noticed some pretty unusual customer behavior when we launched the ‘RTR Unlimited’ subscription in 2016,” co-founder in addition to CEO Jenn Hyman told CNBC. “of which confirmed to us the future is usually ‘closetless.'”
“With the decline in physical retail sales … the rise of Amazon happening so quickly, of which’s difficult for brands to stay afloat,” she added. “We are a growing in addition to important player for brands, in addition to of which’s one of our missions to help incredible designers have big businesses.”
According to Hyman, Amazon in addition to big-box players Target in addition to Wal-Mart present some of the biggest threats to the fashion industry. The three companies have at one point or another mentioned growing their apparel businesses.
In partnering with more brands, Rent the Runway has plans to triple its subscription business by 2018, having seen 125 percent growth on its platform via a year ago. The company has set up physical stores in brand-new York, Chicago, San Francisco, Washington, D.C., in addition to Woodland Hills, California, with the goal of also growing its brick-in addition to-mortar footprint.
Some women are visiting Rent the Runway’s stores twice a day, Hyman said, changing their looks before heading into work in addition to then before heading home, or for a night out on the town.
“Our stores have turned into extensions of our customers’ own closets,” she said.
Unlike online fashion platforms like Gilt, Spring in addition to subscription box service Stitch Fix, which sell clothes, Rent the Runway is usually building what of which calls a “closet from the cloud.”
The company’s original rental offering allowed shoppers to pick a dress or different special-occasion outfit for only four or eight days at a time. Women turned to Rent the Runway for weddings, proms in addition to birthday parties. although a monthly membership type opened the doors to those picking everyday wardrobe staples, even jewelry in addition to accessories.
In tandem with announcing its less-expensive membership type, Rent the Runway also rolled out its first national brand advertising campaign on Monday, hoping to introduce the name to a much wider audience.
The ads predict “what women will do with their closets once they start renting the runway.”
“The concept behind the commercial is usually the idea of which the closet is usually changing, in addition to we’re rethinking This specific place in our home,” Hyman said. “We at Rent the Runway don’t think of which’s going to exist from the future.”