For many female consumers who love beauty, they always feel that there are few clothes in their wardrobe. Most consumers often start buying like crazy as soon as their salary is paid, but newly bought clothes often face the embarrassment of being put aside after being worn only a few times. The sigh of the wallet cannot save the punishment of impulsiveness.
To this end, some clothing brands focus on leasing and pay a sum of money monthly, quarterly, half a year or a year, allowing consumers to choose rented clothes on the shared wardrobe platform, and through express delivery, consumers can realize The connection with merchants has also formed a shared wardrobe model with the concept of monthly clothing replacement.
In fact, the clothing sharing model has already appeared abroad. RenttheRunway, an American clothing rental website, has become very popular since its establishment in 2009. It mainly rents high-end gowns and other occasion wear, including 50,000 sets of dresses, 10,000 pieces of jewelry, handbags and other accessories. Customers can rent a dress with a retail price of $1,700 for $150. On December 27, 2016, RenttheRunway announced that it had raised US$60 million in Series E financing, bringing the total financing to date to US$190 million.
With the continuous innovation of science and technology and the rapid development of Internet technology, human life has also shown an “Internet” model – fast, intelligent, and diversified. The rapid development of e-commerce fully confirms this. Facts have proved that people’s consumption patterns have undergone earth-shaking changes. Taking advantage of the popularity of the sharing economy, entrepreneurs, brands, and rental websites have devoted themselves to the field of shared clothing. The shared clothing market has ushered in a revolution in quality, price, and marketing. Contest.
The professional clothing sharing platform uses the slogan of “renting clothes with credit”
Among the leading companies in the field of shared clothing, Doraemon is the first platform to propose the concept of credit-based clothing rental and credit-free deposit. It stipulates that as long as new users meet the Zhima score standard, when paying the deposit, they must be authorized by Zhima Credit, that is, You can skip the steps of paying a deposit and complete the registration and payment easily.
The upgrade from “deposit rental” to “credit rental” is a completely new experience for users. On the one hand, the deposit model sets a threshold for the conversion of potential users. Previously, many users wanted to try to share such a new way of dressing, but they often stopped in front of the deposit. Nowadays, if Sesame Credit reaches 600 points, you can rent clothes without deposit, which lowers the threshold for users to use new products.
On the other hand, accessing Sesame Credit can bring more recognition from B-end merchants to the shared rental platform, making more clothing brands willing to participate through the shared clothing rental platform.
For the shared clothing industry, credit-free deposits are bound to lead more and more shared service companies to the path of credit leasing. Currently, many shared products on the market offer deposit-free leasing services. The large-scale shared clothing rental platform has joined the ranks of Sesame Credit’s deposit-free services, which has further improved the market structure in the sharing field and made better use of Sesame Credit to improve risk control levels.
For its own platform, the process of paying a deposit will inevitably become a factor that hinders the acquisition of new users. The platform cooperates with Zhima Credit to waive deposits, which solves this problem very well. The cooperation between the two parties will inevitably set off a new round of user growth and have positive significance for the development of shared clothing platforms.
Clothing e-commerce also wants to get a share of the pie with shared clothing
Some rental platforms now mainly provide rental services for daily clothing. The model is B2C. They do not take goods from individual users. All goods are purchased directly by the platform from brands or dealers. After users add their favorite clothes to their suitcases on the platform, they can start enjoying the subscription-based service with a monthly fee of 499 yuan. You can wear these clothes as long as you like them. There is no time limit. If you don’t like them, you can return them and receive a new batch. Of course, the number of clothes in each package is limited. The shared clothing platform provides monthly rental, dress rental and clothing sales services. The clothes it rents include VeraWang, Valentino and other expensive international first-line brands. These clothes are The platform purchases them through overseas brand supply channels and specially hired buyers.
There are also clothing sharing platforms that are open to women through a monthly rental model. You only need to pay a monthly subscription fee of 239 yuan per month to enjoy the clothing rental service of “no limit on holding time, no limit on the number of rentals, no washing and free shipping” during the service period. For autumn and seasonal weather when it is not easy to buy clothes, this model can greatly reduce the cost of buying clothes for women.
Whether it is a model of cooperating with brands or designers to purchase clothing directly or cooperating with brand owners, the model of clothing directly provided by brands is aimed at people with different incomes and different regions, and it also connects with different clothing brands. In terms of cash flow, the self-operated model of directly purchasing clothing in cooperation with brands or designers takes up a lot of funds and is relatively heavy to operate, so cash flow will face greater pressure. When cooperating with brands, the platform model in which clothing is directly provided by the brands will be less stressful.
“”Shared Wardrobe” APP, including “Yi Er San”, “Goddess Pie”, “Dora Clothes Dream”, etc., are similar in model, and their core is rental. Although the positioning of each platform is different, their target customers are all Beauty-loving young women in their twenties, in addition to renting dresses for special occasions, also have the need to wear big-name and trendy fashions in daily life, with prices ranging from several thousand to tens of thousands of yuan
Judging from the current situation of China’s economic development, many industries are facing overcapacity. Many modern people have unprecedented material and cognitive surpluses. This surplus needs to be shared and flowed between societies. Coupled with “environmental protection”, a lifestyle commonly advocated among young people, this has formed a The basis of the sharing economy. Clothing rental companies represent an important aspect of the sharing economy, making fashion more accessible and down-to-earth.
A few years ago, a similar clothing accessories rental website appeared in China, but it was eventually shut down quietly. Today, clothing rental is taking advantage of the shared economy trend. To truly become a “star” of the sharing economy, it still needs to pass multiple thresholds.
1. It is difficult to increase the number of users of shared clothing platforms
Since clothing sharing is basically aimed at first-tier cities, the clothing brands used for rent on the shared clothing platform are also mid-to-high-end. Take Goddess Party as an example. The clothes it shares are all high-priced clothing brands such as VERAWANG, DKNY, and VALENTINO. This means that the platform has to spend a lot of money on inventory.
However, the proportion of female white-collar workers who are willing to spend money to rent these high-end brands is actually not too large, causing the platform to encounter growth bottlenecks in terms of the number of users. It is worth mentioning that the number of platform users is the core of the development of shared clothing. Only when the number of users continues to grow can the new economic model of shared clothing rental continue to grow.
2. The shared leasing model of big-name clothing takes up a lot of funds and makes capital flow difficult
The rental of daily clothing is an important means for clothing sharing platforms to expand their user base. But most people are unwilling to rent daily clothing, as there is no guarantee of quality and it is not cost-effective. Nowadays, the target users of these clothing sharing platforms are white-collar women in first- and second-tier cities, who often have certain requirements for the clothing brands they share.
If the shared clothing platform calculates that a single piece of clothing costs 500 yuan (the price of daily clothing on the clothing rental platform is not low now, ranging from a few hundred yuan to several thousand yuan), each time a member can choose three pieces of clothing, it will take up at least 1,500 yuan. . The greater the number of users, the more funds will occupy the platform, and the greater the pressure on the platform in terms of cleaning and logistics.
In addition, because the rent is too high, on the one hand, low-income consumers are excluded; on the other hand, high-end users are mostly inclined to consume and have certain financial capabilities, so they are reluctant to rent when they see that the rental price is equivalent to the purchase price. , but add a little more money and buy it directly. The pricing of clothing often determines the development of shared clothing platforms.
3. The profit model of the shared clothing platform is not yet clear
With the rapid popularization of the sharing economy, clothing sharing has fully changed the traditional way of selling clothing. The value of shared products lies in maximizing the use value of the product itself. Only when someone uses it will create economic value. Therefore, the charging model of the sharing platform is basically calculated based on the frequency of use. The more times it is used, the higher the income. This is the intrinsic need of the enterprise and the basis for achieving profitability.
However, considering the cost of clothing turnover, inventory, logistics and other costs, it is difficult to support the development of a shared clothing platform with just a few hundred yuan per month in monthly rent.
4. Clothing hygiene issues are a psychological barrier for consumers
According to surveys, many people are skeptical about clothing hygiene issues. In the past, the idea of ”the boss’s clothes should be worn by the second child” has changed. For shared clothing rental platforms, in addition to connecting with more brands and listing more popular styles, they must also make improvements in cleaning, including cooperating with laundry factories and even building their own cleaning centers.
5. The repair cost of high-end clothing is high
If the dress returned by the user is found to be seriously damaged or stained during the quality inspection process, the platform will hand it over to professionals to determine the damage. Based on the damage assessment, it is determined that the user needs to bear the additional cost of repairing the dress. This cost will be deducted from the deposit after confirmation by phone with the user. The remaining deposit will be returned to the user’s account within 24 hours after the repair is completed.
This is the solution given by Shared Clothing to the problem of customers damaging clothes, but this solution will obviously put a certain amount of pressure on the platform. Most of the clothes rented by the platform are big-name brands and are expensive. If the damage is severe, Seriously, the customer’s deposit cannot cover such losses. This is particularly important for small and medium-sized entrepreneurial enterprises and those that lack capital support.For the company, it is a crucial problem.
As a new business model, shared clothing conforms to people’s consumption concepts and psychology as well as the development trend of the times. Since ancient times, everyone has a love for beauty, and the development of the times has also made people have a stronger pursuit of beauty. , the pursuit of clothing is the obvious pursuit of beauty. However, people always like the new and hate the old when it comes to clothes, but the constant purchase of new clothes is a huge expense for quite a few people, and they are even unable to afford it. If you can wear different new clothes by sharing clothes, you can avoid the embarrassment of clothes being thrown away and save a lot of money.
Overall, the innovative business model of “shared clothing” can allow more people to enjoy the pleasant experience brought by these products at an affordable price. It is a very environmentally friendly and sustainable way of development, both for individuals and for society as a whole.
Source: Flush Finance
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