Monthly subscription fees ranging from 90 to 240 dollars for rented clothes may be perceived as an unnecessary expense, prompting subscribers to cancel their memberships.
It is one of the reasons companies like Rent the Runway is banking on clothing from in-demand designers to retain customers and counter recent subscriber losses, while rival Stitch Fix is focusing on private brands.
But it is not just economic uncertainty or rising inflation that has led consumers to reconsider their spending habits on rental fashion. Some subscribers have expressed dissatisfaction with the limited diversity in styles and sizes offered by these rental services, according to the Wall Street Journal (WSJ).
This has prompted for rental service businesses to include diverse style offerings and increase availability, in a bid to convince customers to pay monthly fees for rented clothes.
Rent the Runway CEO Jennifer Hyman told the WJS the subscriber decline was due to inventory issues and believes improvements will drive growth in 2024. Stitch Fix, aiming for profitability, is emphasising private brands to lower inventory acquisition costs.
Furthermore, the emergence of new players in the rental subscription market, such as Nuuly and Armoire, provides consumers with alternative options. With more people working remotely, there is less emphasis on regular wardrobe updates and a decreased need for a variety of professional or formal attire.
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