The trend for consumers demanding convenience and limitless choice at rock bottom prices shows no sign of slowing down. The music industry has long passed the tipping point with subscription sites like Spotify enjoying deeper and broader market share. People have become used to paying a flat, affordable monthly fee and having it all. Amazon did it with kindle and your bookshelf, Netflix with your TV and movie entertainment.
Now, the latest trend developing in the US is for rented clothing. ‘All you can wear’ deals where consumers pay a monthly fee to rent designer clothes for formal events, special occasions and (coming soon folks) everyday and work wear. If it grows at the rate retail analysts expect, it will be just one more in the domino effect of industry disruptions – this time, fashion. Market leader, Rent the runway is bullish. Earlier this year co-founder Jennifer Hyman while announcing RTR had achieved over $100m sales last year said that they now aimed to ‘put Zara and H & M out of business’. A model of subscription where consumers will pay a monthly subscription of estimated between £100 - £150 per month to include every aspect of your wardrobe: clothes, accessories, bags – up to 4 items at a time and continuous refreshment throughout the month. The business says they provide ‘experiential marketing’ for young designers and brands, offering a younger market the chance to enjoy clothing, which typically would fall into an older market’s price bands. They offer sellers the chance for a much earlier connection with their customers and the increased exposure, they say, will have significant implications for increasing share and sales. For the consumer the attraction is obvious too – unlimited wardrobe options at consistent pricing levels. Marketing and web analytics is playing a critical role as it establishes shipping and distribution models, pricing structures, buying behaviours and targeting as personalisation of choices becomes ever more ‘personal’. The race is now on for this trend to find you, meet your needs, get the pricing right for your pocket and simplify the entire retail experience, including bricks and mortar options for trying on and choosing your rental wardrobe in your lunch break or after work. The line between online and offline shopping will blur into an easier, more affordable, more convenient and flexible choice model and marketing analytics will navigate the change.
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AuthorSambecketts Archives
May 2018
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