The Rental Economy: Key Retail Strategies ABoar1e115 g ssoulsngThe global online clothing rental mar! lean into more conscious shopping habits land embrace the idea of access over ownership. According to Reuters, the global clothing rental marke at a CAGR of 10.76% from 2018 will be worth S1Bbillion in 2018, billion by 20 entertainment and automotive industries - bu Payin Zers who want nds into their Investment (and without the price point) These programmes also provide retail with @ new revenue stream and offer a fr way to build long-term customer loyalty{As the rental economy grows, traditional retailers are tying to figure out ways to get involved with fashion rentals, especially in the ever-struggling mall brand category. At the end of 2018, US mall retailer Express debuted Express Style Trial, where shoppers can rent three pieces from the brand for $89.95 a month. Other US retailers experimenting with rental subscriptions include Loft's new Infinitely Loft service, which offers styles in sizes 00 10 26, for a monthly fee of $64.95 arands including Ann Taylor, American Eagle, New York & Company, Vines and Rebecca Taylor are working with Castle, 2 turnkey clothing retail service, to rent out items to expand their customer base and appeal to price-conscious shopper. Womenswear brand Bagsh is using rental as a8 a way of extending consumer trust. Its store in New York features a closet stocked with old-season ready-to-wear items that shoppers can borrow far free, as long a8 it's returned by 2 certain date. “It's based fon generosity and friendship. says Sarah Benady, CEO of North America. Dutch brand Scotch & Sods is also experimenting with rental. In September 2019 it wll introduce Scateh Select, its first-ever men's only subscription rental programme, Customers will pay $99 9 month and can rent up to three items of apparel for as long as they want. The price Includes shipping and dry-cleaning costs. If they choose to buy it, they can. If not, they can simply return it to Scotch & Soda and get something else. Even existing fashion-sharing platforms are expanding further into rental opportunities. In April 2019, Rent the Runway announced that it will begin offering kids clothes. RTW expansion of the company’s existing membership model and offers styles from mini-me luxury brands for ages 3-12. At the end of 2018, luxury handbag resale company Rebag launched Rebag Infinity, where shoppers who buy handbags from the company can return their item up to six months later and automatically get a 70% eredit to buy a new bag, essentially turning 8 purchase into a long-term rentalee On the 17th May, TRAID collected 62 kg of clothes from HURR Collective and reduced carbon emissions (CO2) by 6000 kgs and 99,00 litres of water savings HURR °° With sustainability very much embedded into the elreular economy itself, i's no surprise that new rental platforms are experimenting with eco-friendly initiatives to double-down on their mission to help save the planet Laundry is a key focus for many of these operators who are looking to reduce water waste and opt for cleaner, greener dry: leaning solutions. Washing items properly and responsibly will also extend the lifecycle of a garment and cut down on clothes ending up in landfill Wardrobe, a new US peer-to-peer digital rental marketplace, has secured partnerships with 40 environmentally friendly dry-cleaners across New York where users can pick up or drap off their rented items. The partnership is with the city’s largest GreenEarth dry-cleaner, which cleans items using liquefied sand, or silicone, which is non-hazardous and non. toxic ta the environment or to people. Recyclable wardrobe bags are provided to users picking up items after the item is rented UK rental app Hurr has also partnered with eco-friendly dry-cleaners BLANC, which offers special rates to renters. The company's latest partnership with Traid also helps the planet. Users donate theit Un-rentable clothes to Trald if they don’t meet Hurr’s £150 minimum price point and are put back into circulation, Fashion rental logistics operator Caastle, ‘owned by fashion retailer Gwynnie Bee, manages everything from distribution to the laundering of worn items for third-party retailers The company has two warshouses with cleaning plants in Columbus, Ohio and Phoenix, and states that it dry-cleans as little a8 possible and launders nathing, in order to be as environmentally friend possible, Instead, Caastle cleans rented clothes with a specially developed wet leaning method, using hydrocarbon-based solutions that sre significantly better for the environment than perchloroethylene, 3 chloracatbon most commonly in most dryNow partnerships between existing retailers and rental platforms are emerging to service consumers in different, often In October 2018, US online rental site Rent the Runway installed drop-off boxes for returns at 15 WeWork locations in six cities crass America. The aim? To minimize the well-known pain point of returns, serving both business and customer. The drop-off boxes not only make it easier ‘and more convenient for those renting from Rent the Runway to give their clothes back fonce done, but the partnership also helps to save RTR costs that would have ‘otherwise been incurred from using @ ‘cartier for return. In June 2019, RTW extended its partnership network, installing drop-off boxes at three Nordstrom Local sites and one Nordstrom department store, all in the Los Angeles The Rent the Runway drop-off box fits inta Nordstrom’ service and convenience scheme at its Local stores, which don't sell ‘any merchandise but offer customers services, such a8 alterations and returns A the drop-off boxes within the thre Nordstrom Local units, subscribers can quickly sean and return rented items. The hope is to draw more foot traffic into the sites, while improving RTW's service to existing customers and attracting new The fourth drop-off paint is within Nordstram’s department store at The Grove in LA, where 2 RTW kiosk is located within the express service ares, typically situated by the highest-trafficked entrance In June 2018, London-based luxury retailer Browns partnered with rental service Armarium to give its evening wear collection # new lease of life. For two weeks, shoppers could browse and rent 2 selection of gowns and dresses offered by Armarium within Browns’ South Molton Street store, and hire them for occasions such as weddings or society events. By experimenting with the rental model, Browns was also able to engage 4 younger audience that would otherwise not be able to afford to pay for its deslaner pieces upfront