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Core Guide:

1. Why are fast fashions going online?

2. What is the current situation of shared renting in China?

3. What is the gap between China and the United States in the rental business?

The sharing economy always does its best to solve the problem of how to make the best wearing experience with the least amount of money and time.

From 2015 onwards, with the rise of the sharing economy, by paying a certain membership fee, you can get a “shared rental” service for renting or discounting purchase rights in up to millions of product warehouses. It is the most sought after form.

From the “Rent The Runway”, the originator of the shared rental clothing in the United States, to the domestic “clothing two or three” and “goddess” platforms, the sharing of rents in the early development path, mostly in the form of platforms, through purchase, from Create a brand, or cooperate with a brand to obtain a source of clothing.

However, nowadays, more and more clothing brands are starting to explore their own clothing business.

Fast fashion enters the rental and saves performance

With the “Rent The Runway”, a unicorn with a valuation of over $1 billion, the shared clothing business has become more popular among apparel retailers in the US and Europe, and even they have saved their business. A life-saving straw.

According to media reports, Banana Republic, one of the largest apparel brands in the United States, will start testing an online subscription service called “Style Passport” in September, which includes women’s rental services.

It is understood that consumers can rent three pieces of Banana Republic clothing for $85/month (about RMB 608) and enjoy free shipping, exchange and laundry services.

This business also supports consumers to purchase clothing after trying on. Banana Republic is a mid- to high-end apparel brand owned by GAP, with a single-piece retail price of around $100.

It is reported that the performance of Banana Republic has continued to decline in recent years. According to the Q2 financial report released by GAP Group, sales of Banana Republic fell by 3% to 616 million US dollars, accounting for 15.4% of total revenue.

In 2016, Banana Republic announced the closure of all offline stores in the UK, retaining only the brand’s official website.

Banana Republic CEO and President Mark Breitbard said in a statement that it hopes the business will stimulate performance growth and help the brand build a better emotional connection with young consumers.

Unexpectedly, the US fast fashion brand Urban Outfitters also announced the launch of the women’s monthly rental business called “Nuuly” in August. Registered members pay a membership fee of US$88 per month, from their Free People, Anthropologies, And among the more than 100 third-party brands, one-time rental of six pieces of clothing worth no more than $800.

Project leader David Hayne expects the “Nuuly” business to attract 50,000 subscribers and generate more than $50 million in annual revenue.

Under the same situation as Banana Republic, Urban Outfitters also suffered from the decline in performance: overall same-store sales fell 3% in the second quarter, retail revenue decreased 2.6% year-on-year to $878.7 million, and wholesale income fell 7.5% to 8,363.6 Ten thousand dollars; net sales totaled $962.3 million, a contraction of 3% compared to the same period last year, and net profit decreased by 35% year-on-year to $60.32 million.

As of July 31, the group had $440 million in inventories, a 17.2% increase from the $375.7 million in the same period last year.

In addition, Swedish fast fashion brand H&M announced that it will open a rental store in the flagship store of Segal Square in Stockholm in the late fall of 2019, which includes a sewing studio where H&M members can rent clothing, mend or Custom clothing.

Retailers that also offer apparel rentals include Ann Taylor, Express Inc. and New York and Co. In, among others. <