Social media and a tightening economy are driving many women to rent expensive outfits instead of buying them. While the special occasion rental business has already been flourishing in America, two women entrepreneurs have started Rent the Runway in England, and with the priciest most sought-after brands and lots of dry cleaning, have created a great business concept. They rent $2, 300 Calvin Klein gowns for as little as $70, and have offerings of over $65, 000 outfits.
The ongoing lackluster economy in Europe is one reason many women don’t want to spring for brand new outfits for fancy dress occasions. Social media is another. ” Co-founder Jennifer Hyman said, “You can’t repeat outfits because your friends have seen that outfit on social media, and as ridiculous as it sounds, that is what drives our business.”
Who knew selfies could put a hole in one’s budget? Now not only the people at that particular party have seen you in that dress before, but all your Facebook friends have seen it too. Rent the Runway could do $100 million in sales this year, and Wall Street analysts think it could be the next big thing.