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For Rent the Runway, collaboration with Amazon is a chance to increase its profitability as the company has been facing financial challenges since the pandemic time.
Rent the Runway Inc (NASDAQ: RENT), a fashion company that provides women with the ability to rent designer clothing and accessories, has partnered with Amazon.com Inc (NASDAQ: AMZN) to launch a Rent the Runway Amazon Fashion storefront. The online service features a range of fashion merchandise from over 35 brands, including Tory Sport, Rag & Bone, Tibi, Sita Murt, and Kate Spade New York.
Notably, the secondhand luxury clothes available on the Rent the Runway Amazon Fashion storefront have minor defects. However, before being taken for sale, they were checked, cleaned, and restored. Therefore, nothing is compromising the physical integrity of the items.
In addition to preworn luxury clothes, customers can also buy new items from Rent the Runway’s Design Collective. This selection include limited-edition collections crafted for the platform by up-and-coming designers, as well as partner brands that were previously only available through rental on Rent the Runway. The latter include Adam Lippes, Derek Lam, Esteban Cortazar, Marina Moscone, Ronny Kobo, Jonathan Saunders and Thakoon. Notably, this is the first time when customers can directly buy new designer items from Rent the Runway.
According to Amazon, customers can shop items for any occasion, they can find “weekend wear, workwear, date night apparel and seasonal essentials like sweaters, tops, coats, and denim.” The retail giant can benefit from the increase of the amount of designer fashion sold on its website.
Amazon Fashion president Muge Erdirik Dogan stated:
“At Amazon Fashion, we continually expand our assortment through strategic relationships with brands to inspire and delight our customers. Rent the Runway’s collection continues to grow our offering in pre-loved and designer fashion.”
Meanwhile, for Rent the Runway, collaboration with Amazon is a chance to increase its profitability as the company has been facing financial challenges since the pandemic time. Back in 2020, just one year after Rent the Runway initial public offering (IPO), the company lost a lot of subscribers. Its active subscribers number declined from 133,000 to 55,000, which led to the stock slump.
Rent the Runway co-founder and CEO Jenn Hyman commented:
“There is no site in this country that has higher awareness than Amazon. Rent the Runway is a service that has something for everyone, and we feel that the customer base for us should be broad and diverse.”
“It really brings Rent the Runway much wider brand awareness. Launching programs with major retailers like Amazon is a scaled way to find a home for inventory departing our rental ecosystem, while also further monetizing those units,” added she.
Collaboration with Amazon is not the first time Rent the Runway has partnered with online marketplaces. Earlier, it signed a deal with resale marketplace thredUP on a collection of previously rented designer clothing called “Revive by Rent the Runway.” Besides, the company partnered with off-price department store Saks Off 5th as a part of its recovery strategy.