Rent The Runway Wants To Be The Netflix Of Fashion With New Tiered Subscription Model
Why buy a wardrobe when you can rotate it? RTR’s $89 offering is bringing its model to the masses.
The so-called “sharing economy” has disrupted industries like hospitality (Airbnb), transportation (Uber, Lyft), and entertainment (Netflix). Now, a strategic product update from fashion disruptor Rent the Runway is taking things a step further thanks to tiered subscription models.
RTR’s new subscription service is called “Update” and it provides the opportunity for a lower level of investment based on a user’s preferences and budget. For $89, Update subscribers will be sent four designer pieces from names such as Tory Burch, DVF and Milly and Opening Ceremony. After 30 days, simply send the items back and request a new shipment.
RTR’s “Unlimited” model, now $159/month, allows members with bigger budgets to rotate four items in an unlimited capacity for the duration of the month. The company’s original product, called “Reserve” is tailored for people looking to update their wardrobe around a specific event, such as a dinner, speaking engagement or gala.
The goal of these updates, per CEO and co-founder Jenn Hyman, is to take the “closet in the cloud.” The key benefits include an endlessly updated wardrobe, no additional dry cleaning fees, and added closet space, to boot.
Moreover, there’s a bonus perk for early adopters: In an email to current Unlimited members, Hyman promised to keep rates at $139/month “forever” for current users. When ClassPass raised its monthly rates in April 2016, the news was met with public backlash from current members who felt the hike was too steep.
In terms of how the latest update ties to RTR’s big picture goals, the company hopes to expand its list of retail locations, open a second distribution center and continue to deliver affordable subscription offerings. “We would need to have a $50 a month subscription to truly get at everyone in the U.S., and mark my words someday we will,” Hyman told Self.com.
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