Rent The Runway Adds $89 Subscription As Fashion Tech Startup Chases Younger Shopper – Forbes

Jamel Toppin for Forbes

Jenn Hyman desires Rent the Runway to perform as a "closet on each nook" for girls exterior city coastal areas.

In 2016, vogue tech startup Rent the Runway hit $100 million in revenues for the first time, thanks largely to its Limitless subscription, a $139/month "closet within the cloud," as CEO Jenn Hyman described it.

The plan has confirmed in style with older millennials, largely from city and coastal areas: the common age of Limitless subscribers is 33, and their family revenue has tended to be $100,000 or extra.

On Monday, Rent the Runway will roll out a inexpensive subscription tier geared toward democratizing the rotating wardrobe. For $89/month, girls will obtain 4 rental items from manufacturers together with Tory Burch, DVF, Milly and Opening Ceremony.

This 'RTR Replace,' because the service is named, will look to win over twentysomething girls, Midwesterners, and people from households with an annual revenue of $75,000 and up, Hyman advised Forbes.

It will additionally goal quick-vogue buyers, lots of whom could also be spending some $89 month-to-month already on disposable, badly-made garments from chains like Zara and H&M.

"I wish to take the 'closet within the cloud' and switch it into the 'closet on each nook,'" mentioned Hyman, who's been operating the present solo on the eight-12 months-outdated firm since cofounder Jennifer Fleiss bowed out in March.

She described Rent the Runway as primarily a logistics firm; certainly, its important warehouse can also be America's largest dry-cleaner. To service the "thousands and thousands" of ladies Hyman hopes to achieve with this $89/month plan, the corporate could nicely open a second distribution middle in 2018.

The firm's 5 current retail shops perform as mini-distribution facilities of kinds; subscribers can stroll in earlier than work or a perform, attempt on outfits, and stroll out with out swiping a bank card due to self-scanners. Hyman mentioned to count on additional retail areas exterior main city areas within the close to future.

As for Rent the Runway's massive-image plans, Hyman denied trade rumors that the corporate is seeking to be acquired by a tech big like Amazon or by Neiman Marcus, the place it opened its first store-within-a-store in 2016. "They can not afford us," she laughed.

So far, Rent the Runway has raised $190 million in enterprise capital funding; its $60 million Collection E in 2016 was one of many largest ever for a girls-run firm. Cofounders Hyman and Fleiss, every with stakes of 13% within the enterprise, landed on Forbes' 2016 Self-Made Women to Watch list consequently.

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Jamel Toppin for Forbes

Jenn Hyman desires Rent the Runway to perform as a "closet on each nook" for girls exterior city coastal areas.

In 2016, vogue tech startup Rent the Runway hit $100 million in revenues for the first time, thanks largely to its Limitless subscription, a $139/month "closet within the cloud," as CEO Jenn Hyman described it.

The plan has confirmed in style with older millennials, largely from city and coastal areas: the common age of Limitless subscribers is 33, and their family revenue has tended to be $100,000 or extra.

On Monday, Rent the Runway will roll out a inexpensive subscription tier geared toward democratizing the rotating wardrobe. For $89/month, girls will obtain 4 rental items from manufacturers together with Tory Burch, DVF, Milly and Opening Ceremony.

This 'RTR Replace,' because the service is named, will look to win over twentysomething girls, Midwesterners, and people from households with an annual revenue of $75,000 and up, Hyman advised Forbes.

It will additionally goal quick-vogue buyers, lots of whom could also be spending some $89 month-to-month already on disposable, badly-made garments from chains like Zara and H&M.

"I wish to take the 'closet within the cloud' and switch it into the 'closet on each nook,'" mentioned Hyman, who's been operating the present solo on the eight-12 months-outdated firm since cofounder Jennifer Fleiss bowed out in March.

She described Rent the Runway as primarily a logistics firm; certainly, its important warehouse can also be America's largest dry-cleaner. To service the "thousands and thousands" of ladies Hyman hopes to achieve with this $89/month plan, the corporate could nicely open a second distribution middle in 2018.

The firm's 5 current retail shops perform as mini-distribution facilities of kinds; subscribers can stroll in earlier than work or a perform, attempt on outfits, and stroll out with out swiping a bank card due to self-scanners. Hyman mentioned to count on additional retail areas exterior main city areas within the close to future.

As for Rent the Runway's massive-image plans, Hyman denied trade rumors that the corporate is seeking to be acquired by a tech big like Amazon or by Neiman Marcus, the place it opened its first store-within-a-store in 2016. "They can not afford us," she laughed.

So far, Rent the Runway has raised $190 million in enterprise capital funding; its $60 million Collection E in 2016 was one of many largest ever for a girls-run firm. Cofounders Hyman and Fleiss, every with stakes of 13% within the enterprise, landed on Forbes' 2016 Self-Made Women to Watch list consequently.

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Rent The Runway Adds $89 Subscription As Fashion Tech Startup Chases Younger Shopper - Forbes