What Are The Challenges And Opportunities Of Brand Entry Rental Market?

Nowadays, many brands are trying to win the favor and recognition of the millennial consumers, while leasing services and subscription services have become a breakthrough and access means for many brands. This also makes many retailers eager for second-hand rental markets that have not yet seen absolute hegemony.

Department stores such as Macy's and Bloomingdales have entered the rented apparel market, and they are also offering leasing and ordering services for children.

Although the potential of the secondary rental market is huge, it is not always possible for every seller to afford it. Retailers need to know the following before creating their own leasing supply chain.

Destroy the old and establish the new

Rent the Runway, the rental platform of the United States, will combine leasing fashion with its subscription mode to replace the purchase, making it another way for consumers to wear new clothes.

In addition, many rental market players are constantly innovating. For example, the Scotch Select launched by Scotch&Soda is one of the earlier men's rental services. The move also succeeded in "Raiders" of consumers who usually did not want to spend a lot of time shopping.

The new players in the rental area should dare to break the old and establish new ones. Another example is renting platform Tulerie, which has some exclusiveness and mystique. It also becomes one of the characteristics that it can attract consumers.

When building effective systems, it is important to establish advantages and subvert innovation, but the premise is that you do not think that doing so will hamper the operation of the supply chain.

This is not a supply chain for everyone.

In February, JC Penney announced that it would close its menswear ordering service while Gap also cancelled its children's clothing ordering service. This is the two negative example. There is a certain risk from retail transformation or leasing industry, which is especially true for retailers who have not yet done well in store experience. If the traditional retailers fail to solve the problem of full channel operation and passenger flow, they may not have enough strength to enter the rental market.

It is understood that in the United States, ordinary consumers throw out 81 pounds of old clothes every year. The retail industry is also the second largest polluting manufacturing industry in the world. Moreover, the big topic of clothing leasing is environmental and ecological problems. The clothing industry has become a serious disaster for environmental pollution. So in recent years, fashion brands are gradually warming up in sustainable, environmental protection and other related topics.

More and more consumers are beginning to realize the pollution of fast fashion industry, so retailers also need to adapt to changing consumer habits and find new sources of revenue in the leasing supply chain. Another advantage of renting services is that consumers who are less willing to try to buy new brands are more likely to become renters through renting.

Summary

Rental service companies are gradually divestiing retail business and rapidly entering the leasing area in an attempt to transform the current customers who are still not satisfied with the retail experience. Leasing electric LeTote acquisition of old luxury department store Lord&Taylor is a clear signal, but also shows the prospects for the development of the rental market. To create a lasting lease supply chain, to provide customers with unique services and enhance the overall consumption experience, all players need to go up and down.