Loading... Please wait...
  • CALL US ON
  • My Account

Blog - Wholesale

Should you fear the clothing rental trend?

Posted by

The prescription to fight flagging sales that many retailers in the apparel world have embraced recently is the subscription program. In recent months a large swath of brands such as Banana Republic, Urban Outfitters, Ann Taylor, American Eagle, and Vince have all announced plans to launch their own clothing rental programs. What's behind this move by so many big players getting into the rental business? It's simple; it's a play to stay relevant in a wildly competitive retail environment where online sales seem to gobble up more market share each year from these traditionally brick and mortar retailers. The subscription service model is not a new one, but it's gained significant popularly in recent years. Consumers have acclimated themselves to the concept and have gotten used to seeing that monthly charge on their credit card statements. It's quite an appealing concept for retailers as its guaranteed revenue in their doors each month in the form of the flat monthly fee. Plus more potential sales if the goods are kept or if the consumer forgets to return them. This is the kind of income that retailers crave. It's far easier to forecast revenue in a subscription-based program, and guaranteed income even if the consumer does not end up purchasing that particular month's items.

Let's return to the initial question of this article. As independent retailers should you be concerned about clothing subscription services replacing online or brick and mortar apparel retail anytime soon? The answer, in my opinion, is no for several reasons. For starters, subscription services are most appealing to consumers when they offer a solution to a particular problem. Need entertainment? Subscribe to one of the multitudes of streaming services now available to consumers, millions of hours of entertainment are now at your fingertips. Need some quick homecooked meals? Subscribe to one of the many home delivery meal kits currently available and save yourself the headache of figuring out what's for dinner tonight. These are both solutions to a particular problem, and that is their main appeal. Now I am not saying having no clothes is not a problem, but the concept of buying all of your clothes from a single brand seems like quite a stretch. Do you have a closet comprised of exclusively a single brand? And if not, are you willing to start up a half dozen or more subscription services to give your wardrobe the variety you crave? I highly doubt it. Clothing selection is a very personal thing; it's a form of self-expression that very few consumers are willing to leave in the hands of anyone or anything else. Some of these models may have some initial success, in particular, those able to offer a variety of brands and styles. There are several well-established players in the arena like Rent the Runway that will probably be around for some time to come, but most of these new rental options will burn out quickly as the fad loses its appeal. Consumers want variety and choices; that's why there will always be room for independent retailers like you that offer their customers a multitude of options. You know too that you can rely on Foxliquidation a leader in the liquidation industry that can deliver all of these options. Keep one thing in mind. Clothing rental subscription services are a solution to a retailer's problem, not a consumer's problem. 

The Real Real is the real deal.

Regular readers may recall us mentioning the Real Real before as a part of your multiplatform online sales strategy but we thought it was high time for a deeper examination. There have been lots of new developments with the company recently. Most notably a successful initial public offering earlier this year, but what has turned this online consignment business into [...]

Read More »


The latest developments from the trade war front

Developments in the China trade war have been unfolding rapidly over the last few weeks, so I thought It would be an excellent time to reexamine the current state of affairs. Retailers have been bracing for some time now for the List 4 tariffs, slated to take effect September 1st this round, in particular, has caused some sleepless nights [...]

Read More »


Is it time to freshen things up?

When was the last time you had a McDonald’s hamburger? Has it been a few months or years perhaps? If so, you are not alone, the golden arches have lost some of their luster. Over the last decade, McDonald’s has seen a steady decline in sales and market share as newer players have entered the fast food arena and [...]

Read More »


We highlight this week some old features and some new features of Foxliquidation.com

Today we are going to spotlight two valuable tools our site offers and to explain what they do and how to use them to your best advantage. The first is something old, but if used properly, can be an invaluable tool to lock down that merchandise you need. The second is something new to the site, and it’s a [...]

Read More »


A closer look at one of the apparel industries leaders

Apparel resellers who want to stay on top of their selling game, need to keep a careful eye on the fashion industry, so they know where the apparel market will be going next. It’s just like driving, best to know what’s on the road ahead and to know what’s around that next bend. So today we are going to [...]

Read More »


A quote at the click of a button

It’s midnight, you had a long day at work and the kids were driving you crazy most of the night, but they are finally in bed and now you’re ready to sit down and start doing some shopping. Not on frivolous purchases though, your shopping for your next load of liquidation merchandise from Foxliquidation.com the kind of shopping that [...]

Read More »


Some people are just not cut out for retirement

To bookend last week’s blog entry, we are going to go to the opposite end of the reseller spectrum and this week talk about resellers interested in starting their second career in reselling. Do you have someone in your life like this? A serious minded hardworking professional with loads of talent and energy just about retirement age or older that [...]

Read More »


Hey kid, Get a job! How about hey kid start a business! instead?

This one’s directed to all the soon to be anxious parents out there dreading the impending summer break and their teenage children being home from school for two months. Yes, summer is just around the corner and it can be a real challenge to keep them occupied and out of trouble. Likely they have their own plans for how [...]

Read More »


Don’t let another season pass you by

After a long, cruel and seemingly endless winter, It’s finally spring again and the perfect time to start selling swimwear. Before you say it, yes we have talked about swimwear before, and we are circling back on the subject again today because it’s a category of goods that deserves the added attention. Swimwear as a category is perfect for any type [...]

Read More »



 

Categories

View all categories

Recent Updates

Connect with us

Newsletter