Will Sharing Rents Be A New Attempt For Clothing Business Operators?

At present, the goddess faction has launched three business lines, namely, single dress rental, monthly fee membership cloud wardrobe and offline store.

"These businesses achieve profitability or balance in a year."

The goddess school mainly solves the following four major problems, which are the main pain points and barriers in this mode.

1. reduce procurement costs, 2. change traditional inventory system, 3. limit hire, 4.

Cleaning is a barrier.

In February 16th, women's fashion share of the business goddess School announced that it had completed its venture capital investment by the end of 2016 by the end of 2016.

According to the world clothing shoes and hats net, this is the domestic clothing.

The largest A round of financing to date.

At the end of 2014, Xu Pai co founding team set up the goddess school.

From the point of view of the pattern, the goddess group provides consumers with short rental services for dress, daily clothing and accessories by buying clothes, and members can rent the international brand at the original retail price of 5%-10%.

According to Xu Baizi, the main customers of the goddess group are 20-25 year old college students and workplace newcomers, followed by 26-30 year old white-collar women.

Daren.

The former uses mostly casual clothes, with a retail price of around 1000 yuan, and a young designer brand, which has a high frequency. The latter has enough regular clothing accumulation to meet the rigid requirements of the party, wedding, company annual meeting and other special occasions.

Domestic online apparel rental platforms have been launched online and get financing.

For example, "clothing two or three" was invested by IDG capital in A+ million dollar investment; "multi garment dream" also completed 46 million yuan A round of financing.

By the end of 2015, the goddess group had invested $3 million in Huachang capital Pre-A.

Xu said that the current financing will be mainly used for market input to accelerate the growth rate of the monthly membership base, and to expand the purchase volume of the high-end and well-known overseas brands daily clothes.

From this we can see that the development of the uniform on the goddess platform is more rapid.

In addition, the goddess group has further strengthened the management team, and the newly joined strategic person graduated from London School of Economics and Political Science and served as an analyst of Macquarie Group.

Meanwhile, supply chain experts, red star, VP and other senior talents joined the goddess group at the same time.

Will sharing rents be a new attempt for clothing business operators?

Traditional clothing business operators generally low gross profit, low Re purchase and low customer orders, plus online retail sales atrophy. Is the clothing leasing under the shared economy really a good business?

According to the world's clothing and shoe net, goddess school has launched three business lines, namely, single dress rental, monthly fee membership cloud wardrobe and offline store.

"In less than a year, we can make profits or break even."

Xu Baizi, founder, told reporters.

Earlier, Yu Yue, a Huachang capital investor, told reporters that the reason for investing in the rental area of clothing was: "influenced by the social media, fashion, and friends, the Chinese girls have escalating demand for clothing consumption.

However, international top and high-end women's clothing is still unable to reach domestic consumers at a reasonable price and quality experience.

There is a market opportunity -- clothing leasing.

Jiang Haotian, managing director of Aurora ventures, further explained the advantages of the mode of clothing leasing: "clothing is a trillion market, and it is highly mature in the field of e-commerce, but it still can not avoid the problems of inventory risk, high return rate, and low online consumption caused by non-standard products. The goddess school has carried out the innovation of the underlying mode according to the core demand of the new generation of consumers, and optimized the supply chain and operation mode in a large number."

As for the goddess of investment, Xu Chuansheng, managing partner of Jingwei, said that the team's ability to perform is valued because the goddess is doing a business that needs to be spelled out and run together.

An attempt to localize American experience

In fact, the birth of the goddess faction is the shadow of the Rent the Runway, the more original example of the American experience.

Xu has been vice president of Deutsche Bank and Macquarie Group's TMT investment banking division in Hongkong. Her experience in investment banking has brought her to many pre Internet start-up companies.

In early 2014, Xu Po TSE found that several foreign companies in the field of clothing leasing have won huge sums and rounds of financing. Among them, the Rent the Runway, which earned US $60 million in E financing, is a typical case. The founder of the company even claimed that she wanted to build "Amazonian" in the leasing industry.

Online clothing rental demand has a long history, but the pain is obvious: first of all, to bear high rental and personnel costs, resulting in rent and even more than shoulder price; secondly, there is no advantage in the purchase channel, mostly for the wholesale market without brand low-end dress, and the wedding dress, table clothing and other vertical scenes.

The success of Rent the Runway is based on the internal complex and efficient operation system. According to Forbes Chinese net, the company has 5 million members in the United States, the daily website and its software algorithm need to be processed, and more than 65000 garments and 25000 earrings, bracelets and necklaces are sent to members.

This is exactly what Xu is good at. She graduated from Columbia University's enterprise operation engineering specialty, similar to the operations research in domestic universities. In brief, she uses computers to simulate the whole practical operation system to improve efficiency.

"Maybe you can copy American experience to China and build the Chinese version of Rent the Runway."

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At present, the goddess school mainly solves the following four major problems, which are the main pain points and barriers in this mode.

01 reduce procurement costs

Xu said that the leasing mode mainly produces three major costs, namely procurement cost, express cost and labor cost in the back end supply chain.

Although the latter two have advantages over Rent the Runway in China, procurement costs will be a major constraint in the case of smaller platforms.

Compared with other rental platforms in China, goddess brand positioning is relatively high. The high-end dress and daily rentals available include Vera Wang, Kate Spade, Valentino, Lanvin, Ralph Lauren, etc.

American brands account for more than 70% of the goddess brand library, but high unit price means high inventory costs.

It is very important for the goddess school to choose a reasonable purchase channel and ensure a competitive purchase price on brand expansion and selection.

Under normal circumstances, super brand licensing is more difficult. In order to reduce costs, most of the goddess are purchased from distributors.

In the high-end positioning, Yu Yue believes that the establishment of high-end brand procurement channels overseas, to ensure the supply of clothing supplies, reduce procurement costs, which is able to provide users with the core value.

02 traditional inventory system, out

"The traditional electricity business is mainly based on inventory sales, and the business of renting clothes is actually looking at how many times a garment can turn around in its limited life, which means how much money it can earn."

Xu told reporters.

However, it is not easy to deliver a high priced dress or bag across the country. We need to consider factors such as timely delivery, fit, quality and so on.

In addition, the reverse logistics from the user's hands is also an important part of online leasing, which requires higher customer service, customer experience and inspection.

This requires a complete rental system.

The goddess school adopts the predetermined pattern, followed by a rental schedule behind each garment.

The advantage is that first, we should promote the operation and supply chain operation by the business mode, instead of making KPI artificially; secondly, we can directly judge the selling level of the models, and judge the level of the users by the rent pricing; thirdly, we should flexibly adjust the price to control the leasing situation, rent the rent quickly, slow down the rent, and maintain the lever balance between the brand and the inventory.

In addition, the goddess faction will increase the stock of the explosive money.

Under normal circumstances, the goddess sent each purchase 3-5 sizes, according to the scheduled days before the shelves, the rental rate of high style inventory gradually increased to dozens of pieces.

The retail price of most overseas channel clothing ranges from 2000 to 5000 yuan on the platform. The retail price range of most domestic channel clothing is 600-2000 yuan, and dozens of new products are on shelves every day.

03 limit the amount of hire.

Xu has found that in order to make the platform flow quickly, the main force is always served.

Although the dress is just needed, the frequency is limited. Even the most active social queen does not exceed 10 times a year.

The focus of operation naturally falls on how to make users stay on the platform for a longer time, and recommend commodities according to user's data to reduce the cost of decision-making.

The goddesses once made a series of attempts in the membership system, paying three pieces per month, and at the same time, they could borrow more than one piece. The result was that the clothes with high price were looted, the rate of attrition increased, the relatively cheap ones were left idle, and the stock utilization was very uneven.

Therefore, Xu decided that, for regular clothes, the monthly package should be used in the form of monthly package, the amount of free rent should be limited, the way of flexible price adjustment should be improved, the monthly mode should be improved, and the monthly allowance of 518 yuan and 3588 yuan can be set. Users can choose any clothing that is less than 400 yuan within the total rent. The number of monthly garments is unlimited, and each dress is set free for 5-15 days. For dress, the number of times is calculated. The platform stipulates that the rental time is 3 days.

04 clothing cleaning is a barrier.

According to Xu Baizi, the average Rent the Runway can be cleaned for more than 30 times, and the goddess self service laundry center is gradually reducing its distance.

In her opinion, the probability of washing is higher than that worn out. The main reason for this difference lies in the cleaning equipment. "All fabrics with corresponding detergents and special cleaning instruments will affect the service life of the clothes."

At present, the goddess faction has moved into the self built 3000 square meter integrated warehousing and cleaning center, and the high-end commercial laundry systems and equipment imported from abroad have also been put into operation.

After all, the longer the life cycle of clothing (70%), the higher the rate of return on investment.

For a long time, the goddesses were polishing the back-end operation capability, including personnel distribution and execution efficiency, so as to ensure that they could react quickly when clothes were exposed to non-standard special situations such as stains, blemishes and wires.

In terms of cost calculation and profit model, the cost of ordinary electricity providers is mainly composed of logistics, packaging and goods purchase price. The goddess new increases the depreciation cost of goods (that is, the price divided by the number of rents), but at the same time, the goods may be leased n times (1 less than n or less than 15), and the profit depends on the operational efficiency.

According to Xu Bai Zi in 2016, "the goddess faction has been able to make profits in the fourth quarter of the year."

As to whether there will be malicious damage or pfer of genuine products on such rental platforms, in a senior user's view, the clothing sharing economy must first be based on trust collection items, and then the platform will enhance user participation and quality through reward and punishment rules, and timely collect and collate user feedback information, so as to form a virtuous circle.

A netizen commented that this kind of platform still focused on dress, wedding dress and other clothes sharing on major occasions. After all, not many people spent a lot of money on clothes for a banquet.

The biggest problem is that Chinese people are still in conflict with second-hand clothing. If there is a guarantee that they can be cleaned and sterilized, it will be a promising market.

More interesting reports, please pay attention to the world clothing shoes and hats net.