Renting the runway might be a brand new concept for many of us. However, the idea has been around for quite some time now. The apparel rental model already exists in the West. A lot of online and traditional fashion shops are doing their business on the basis of this concept. A few modest fashion companies have successfully adopted the business model in the past few years.
But is this business model for you? Well, we may not be in a position to decide on your behalf, but we will try to give you some basic information on this before you actually get started.
What is the Meaning of Modest Fashion for Rent?
In this business model, people rent out their formal dresses for special occasions like weddings and parties. They do not wear these dresses frequently. So, it becomes feasible for them to rent their expensive clothes to the people who need them on special occasions. Women all over the world love the concept as it gives them a chance to wear expensive clothes on special occasions by spending a small amount of rental money.
The idea is to offer women “a closet in the cloud.” By paying a small sum of money, women can rent a wide range of apparel, jewelry, and bags.
Some people might not like the idea of showing their designer dresses to strangers. However, based on the market data, it looks like a thriving business model for many companies.
Market Analysis of the Modest Fashion Rental Market
Research and markets claim that the value of the online fashion rental market will increase from its 2019 level of $1.26 billion to $2.08 billion by 2025, representing a CAGR of 8.7% between 2020 and 2025.
Companies that rent out clothing online seem to fill a need for people who want to look good but can’t always afford high-end labels or who just don’t want to shell out a lot of cash on a single occasion. Customers of this business have the option of renting clothing in a wide range of colors, sizes, designs, brands, and pricing ranges.
Steps to Start Your Fashion Rental Business
1. Develop a Strategy
Having a well-defined strategy is crucial to the growth of your rental business. The main factors of the plan are market analysis, identification of target clients, selection of effective pricing, identification of basic expenses, and estimation of necessary funds.
Market research should be conducted prior to launching a clothing rental service to determine the potential for profit, the size of the current market, and the identities and business strategies of potential competitors.
The next step is to identify your ideal customers by learning more about where they live, what traits they possess, and so on. In order to attract customers, it is essential to first develop a detailed profile of your ideal client.
Moreover, it’s important to settle on a pricing structure for the things you’ll be renting out. How much of a range exists in the cost of renting various clothing? Is it possible to subscribe to a clothing rental service? Are the costs of shipping and dry cleaning rolled into one monthly payment? The needs of the customer must be identified and met in order to ensure success.
2. Create a Company’s Website
Customers for your fashion rental business will mostly interact with you through your website. Try putting yourself in their place and thinking about what kind of content you would find useful if you were visiting the site. Put them in an order that will allow customers to quickly locate the goods they need.
The essential part to handle overall duties is to have a third-party rental management module built into your website. Find a program that will help you design and manage your rental products. It includes the rental duration and holds a rate for each item to prevent orders from being placed also, the inclusion of any necessary accessories, and so on.
3. Find a Shipping Service
Delivering the rented items on time is just as crucial as providing high-quality clothes and attentive customer service in order to win over new clients and keep existing ones happy. The time it takes to get orders to customers’ hands depends on a number of factors, including the location of your warehouse, the quality and cost of your shipping partners, and so on.
Just as important as how quickly you can provide your products to customers is how well they hold up once they get there. If you use a reliable shipping company, your goods will arrive in perfect condition. If you want to succeed in this industry, you need to make sure that your deliveries are always made on time and with the utmost care.
4. Engage with Laundry Services
Finding a dry cleaner to assist with laundry is particularly important for a clothing rental business. Furthermore, unlike when using water, the cleaning process employing a solvent could preserve the condition of clothing.
In an effort to cut costs, you might decide to do the dry cleaning on your own. But, when your rental service attracts a significant number of clients who return a large number of products every day, it’s more practical to hire a local dry cleaning service provider. You’ll be able to get through the laundry cleaning process more quickly, which will ensure that the following customer gets their clothes on time.
Well, there you have it. Read this article to find out what it takes to launch a modest fashion rental company. One day soon, you’ll be able to assist others in responsibly wearing the clothes of their dreams. Always keep in mind that the following is essential for your success:
- Put legal and organizational structures in place.
- Make sure everything is neatly arranged.
- If you want to succeed, you need to promote yourself aggressively.
Wondering how long it all might take? Though launching a business from scratch requires significant effort, it is possible to do so in a reasonable amount of time with the right mindset and work ethic.