rent vs. buy 👗
Rent the Runway Chases the Fast-Fashion Shopper
Rent the Runway is going after discount shoppers outside big cities with a limited, lower-priced fashion-rental plan, dangling the allure of an ever-changing designer wardrobe for $89 a month.
The New York-based company on Monday is introducing a new subscription priced at $89 a month...Under the new model, customers can rent up to four pieces a month, including dresses, coats or handbags, from labels such as Tory Burch, Vince and Diane von Furstenberg. The items arrive dry-cleaned and in a garment bag with a prepaid postage label; the customer must return them by the end of a month to obtain four more items.
Rent the Runway has raised a $60 million investment led by Fidelity
The company was profitable in 2016 on revenue north of $100 million.
The startup best known for its dress rental business put together a profitable year on an EBITDA basis while growing its revenue to well over $100 million.
Stitch Fix has filed publicly for its long-awaited IPO
$0 to $977 million real quick.
The San Francisco-based company registered $977 million in revenue in its most recent fiscal year, which ended this summer. It lost $594,000 for the year, after two years of strong profits.
Selling, general and administrative expenses in 2017 increased by $143.8 million, or 55.5%, from selling, general and administrative expenses in 2016. The increase in selling, general and administrative expenses was primarily attributable to a $68.1 million increase in compensation and benefits expenses as we increased our headcount, and a $16.5 million increase related to compensation expense recognized for certain stock sales by current and former employees. In addition, the increase was driven by $47.8 million in higher marketing spend as we expanded our television, online and radio advertising initiatives.
Stitch Fix runs a large data-science operation, which the company says helps it make more accurate styling choices for customers, and also helps it create its own clothing that matches up with current trends.
This really helps solidify the earlier point about our idealistic startups; if you're going to compete, you have to provide something really meaningful for the end user, in brand or product. It has to be something that would compel them to circumvent the convenience of Amazon and jump through whatever hoops are necessary to purchase yours, and you need to be able to find your audience wherever they live.