Rent the Runway Moves Downscale

The Wall Street Journal: Rent the Runway “is introducing a new subscription priced at $89 a month, 35% less than the $139 monthly subscription plan the company launched last year. The new, lower-priced plan limits customers to four items a month and excludes some high-end designers. Jennifer Hyman, chief executive and co-founder of Rent the Runway, said the new plan is aimed at price-sensitive shoppers, not the affluent professionals who make up most of the company’s existing subscribers.”

“Under the new model, customers can rent up to four pieces a month, including dresses, coats or handbags, from labels such as Tory Burch, Vince and Diane von Furstenberg. The items arrive dry-cleaned and in a garment bag with a prepaid postage label; the customer must return them by the end of a month to obtain four more items … With the new price tier, Rent the Runway is hoping to compete with fast-fashion and discount retailers like T.J. Maxx , Zara and H&M , which have bucked many of the problems dragging down traditional clothing chains by luring shoppers with low prices and constantly changing merchandise.”

However: “‘Getting people to change their behavior is difficult,’ said David Bell, a marketing professor at University of Pennsylvania’s Wharton School. Most consumers don’t do the math to determine whether renting or buying is a better deal, he said; others may be turned off by the thought of putting on a previously worn dress.”

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