Rent-The-Runway or RTR as I will refer to it by has a problem that finally reached a boiling point. It’s not with growth, subscribers, or even any CEO problems. It’s good ole fashion supply chain logistics and operations that’s weighing down the subscription fashion pioneer.
As I just mentioned RTR is one of the first and one of the biggest pioneers of rental/subscription services in the fashion world. Just a few years ago the company was founded by Jennifer Hyman, who changed how we (mainly women) saw the way to buy clothing. They transformed an ancient industry through technology and a new perspective. By renting out dresses they quickly became a very well liked and perfectly functioning company. Today they have millions of users and returning customers, they are profitable, and they continue to gain traction.
But as I see it, they have just found their biggest growing pain and possibly their biggest opportunity. Supply Chain and Operations. Because of a recent uptick in delays and overdue items, the company is taking a strategic, but costly, step back to revamp operations and make tweaks in supply chain that will, hopefully, lead to less delays and quicker turn over time of product. That is what they hope of course. The plan has halted the ability to take on customers or even take new orders. This is bad. This will lead to plenty of people to turn away and move to competitors. IF those customers that left end up having the same or a better experience then RTR is truly going up shit’s creek without a paddle. The losses are predicted to be in the almost 3 million dollars and cause quite a stir among the loyalists. People are relying on a service and not getting their desired outcome. Defcon 5 people, this is Defcon mafuckin’ 5.
This ultimately means two things, 1- RTR needs to be ready to repair broken relationships and win back their customers through incentives (they have already started) 2- This is the FUCKING OPPORTUNITY of a lifetime for the competitors. Kick ‘em while their down and keep kicking. If you want to win it’s probably going to be brutal. Competitors should be taking these 3 weeks to advertise, incentivize, and multiply. They have a short window but it is just enough to win over some loyalists from RTR. Meanwhile, RTR is not stupid. They will fire back, but make hay while the sun is shining. Go out there and take #1.
On another note this is a good way for RTR to rebuild and perfect a really great supply chain and operations channel. They need to look at their mistake, think about it, and try something new to build upon or recreate their systems. This is a good time for RTR to reflect, they should use that wisely. The damage is done, now time to rebuild baby.
So, the fashion industry had a little shake up, between Forever21 shutting down to the operational nightmare at RTR, there is plenty of room for movement and improvement. The companies that see this as a giant opportunity, will surely prevail, the one’s that overlook this will end up like all the rest, in a retail and fashion graveyard. Take advantage, learn from mistakes, Jesus it’s like I’m writing life advice for a subscription fashion company. It’s your time to shine little one’s!
Anyway, that’s my take on it.
Until next time.
-GS
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