What’s missing from everyday fashion rental subscription services?


Through a special arrangement, presented here for discussion is an excerpt of a current article from the blog of Nikki Baird, VP of retail innovation at Aptos. The article first appeared on Forbes.com.
Online fashion rental has taken off in recent years. The initial focus was on high-end accessories and apparel for “once in a lifetime” events like weddings or pregnancy, but that has now extended to making high-end labels approachable to average budgets, giving a wear-it-and-move-on fashionista the opportunity to look like she has the closet of a Kardashian.
The next round in fashion rentals looks to target the more everyday shopper with Express, Ann Taylor and New York & Co. all launching businesses. Each follows the exact same model (unlimited exchanges, pre-paid shipping, free laundry) with different assortments and price points for a three-item subscription. NY&Co comes in the cheapest at $50 per month, followed by Express ($70) and Ann Taylor ($95).
I decided to try NY&Co, placing 13 items into my “on the rack” list. Three items soon arrived, but the whole experience was a letdown.
Even opening the box failed to hold the same anticipation that, say, StitchFix holds. I don’t know what StitchFix will send me. I know that all the things in the NY&Co box will be things I picked, so that “Christmas morning” feeling was diminished.
But the major problem for me is the vague uneasiness that accompanies such services, which is pretty much a little whisper that says, “You don’t own these.”
NY&Co’s box did offer options to purchase the rental items at a steep discount that adds some value to the proposed $600-per-year subscription service. But I’m not wearing something exciting, like for a special event, and I’m not wearing something that makes me feel special, like a high-end label that I would never buy on my own. (I still have the heavy satin bridesmaid dress in my closet from the last wedding I was in, which I think is going on 10 years ago.) And I find, without that kind of value equation — even with the potential discount on items I might keep — it’s just not as satisfying as owning.
As someone who admittedly has a subscription box addiction, it was a feeling I did not expect.
- The Curious Emptiness Of Renting Everyday Fashion – Forbes
- NY&CO Closet
- Infinite Style By Ann Taylor
- Express Style Trial
DISCUSSION QUESTIONS: What do you think of the business potential of everyday clothing subscription services such as those described in the article? Do you think consumers are changing their notions about ownership and are increasingly open to renting products that have traditionally been purchased?
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10 Comments on "What’s missing from everyday fashion rental subscription services?"
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Vice President of Marketing, OrderDynamics
What Nikki articulates is the same feeling most of today’s shoppers feel. The clothing rental market is still quite new. As such, growth is a wide open opportunity. Even for retailers that sell their products, companies like REI are offering pre-used goods. It can bring in shoppers to consider your products, who might not traditionally have been a customer. Interesting prospects.
Managing Director, GlobalData
The concept of ownership has changed and continues to change. People are slightly less materialistic and more concerned with sustainability, so rental services will continue to grow across all categories. However, I agree with Nikki’s view that the appeal is somewhat diminished for everyday apparel. There is little thrill in receiving more mundane products and there is little value in renting things which are of relatively low value. Indeed, it’s probably more wasteful to rent everyday things than to buy them and wear them regularly.
Global Retail & CPG Sales Strategist, IBM
I think the obvious direction is toward subscriptions versus ownership for everything, yes everything. There is no more pride in ownership for many consumers, and those merchants that can provide the instantaneous satisfaction to those seeking it for specific goods, including fashion apparel, have an unlimited opportunity at this point.
Associate Professor, Fashion Institute of Technology
Principal, Retail Technology Group
Being, admittedly, one of the worst consumers in the world, I venture to say that the rental model — while not for me — is a good model for the special occasion, which is very limited. To how many special occasions do I go for which I need a special something? It doesn’t matter, the answer is a tuxedo and I own one. For women, it is quite different, as each special occasion is an opportunity to wear something different without having to purchase it, but it is still a limited market.
Principal, KIZER & BENDER Speaking
Strategy & Operations Delivery Leader
The subscription services model has taken off and is resonating with consumers across the luxury, fashion, and health & beauty spaces. However in order to retain that level of excitement, brands have to continue to impress, entertain and mix up the assortments on a personal level that will inspire the customer to stay with the model.
The move to a shared economy has ascended across so many industries, and the old concept of ownership has been diminished to an extent. This also applies to the fashion industry. I am in full agreement with Nikki that the subscription model has worked extremely well for Rent the Runway, and other companies, yet for everyday clothing, the excitement simply isn’t there.
Retail Transformation Thought Leader, Advisor, & Strategist
I think Nikki hits exactly the two points that have made subscription services appealing to consumers – the element of surprise, and the idea of using a product you otherwise would not buy. With everyday apparel, we’re talking about items that the consumer would already be inclined to buy which most likely they would use quite frequently. So the appeal of opening the box and seeing something unexpected is gone, and the items themselves, once opened, don’t carry that awe-inspiring “I can’t believe I have this” feeling either. That leaves the price as a deciding factor for many consumers to opt into these subscription services. While that may work for some, I suspect this is an experiment that will need continued tweaking to find the right price point and service combination that works for a critical mass of consumers such that the retailer finds it financially worthwhile.
Marketing Strategy Lead - Retail, Travel & Distribution, Verizon
Subscription rental programs don’t seem to make sense for everyday clothing. As Nikki mentioned, there is no excitement and the value proposition is not compelling. For everyday clothing, fast fashion and off-price retailers now offer consumers very inexpensive options for basic apparel. In some cases, it is so reasonably priced that consumers can just wear a garment a few times and discard or donate and buy something new. This allows them to keep their wardrobe fresh without having to wear and item that has been worn by someone else.
Subscription rental programs make total sense for luxury brands and apparel items for special occasions. I suspect the everyday clothing brand rental services mentioned above may be short-lived.
Director of Marketing, OceanX
I think there is definitely a place for apparel subscriptions, but can’t see them really succeeding on the low end of the market where you can just as easily buy from a discount or fast fashion retailer or even try Amazon Wardrobe. There is also something special in finding that perfect outfit for an occasion that these rental type programs from these specific retailers who all use the same platform don’t quite hit on enough. As Nikki articulates, the experience needs to be special and continually prove value for someone to continue to subscribe.