By COLLEEN DEBAISE
Wall Street Journal
If consumers can rent a movie by mail, or wheels on a whim, why not a couture gown should the occasion strike? That's the concept behind Rent the Runway, a website launched in November 2009 that promises to give "every woman the opportunity to be Cinderella for the night," says co-founder Jennifer Hyman. Customers can choose from an array of designer duds for one-time wear at a fraction of the frocks' retail price tag. (A little black dress worth $1,250, for instance, rents for $150, plus shipping and $5 insurance.) Returns are as simple as dropping the Dolce & Gabbana or Diane von Furstenberg into a pre-paid mailing envelope. To date, Rent the Runway appears to be leading a charmed life of its own, signing up 800,000 members, growing February sales at 10 times last year's rate, securing $17 million in venture capital and becoming cash-flow positive in under a year. Ms. Hyman, 30 years old, and her co-founder, Jennifer Fleiss, 27, who met at Harvard Business School, are attending this week's Fashion Week as buyers, on the look-out for styles that customers will love, wear – and return.
If consumers can rent a movie by mail, or wheels on a whim, why not a couture gown should the occasion strike? That's the concept behind Rent the Runway, a website launched in November 2009 that promises to give "every woman the opportunity to be Cinderella for the night," says co-founder Jennifer Hyman. Customers can choose from an array of designer duds for one-time wear at a fraction of the frocks' retail price tag. (A little black dress worth $1,250, for instance, rents for $150, plus shipping and $5 insurance.) Returns are as simple as dropping the Dolce & Gabbana or Diane von Furstenberg into a pre-paid mailing envelope. To date, Rent the Runway appears to be leading a charmed life of its own, signing up 800,000 members, growing February sales at 10 times last year's rate, securing $17 million in venture capital and becoming cash-flow positive in under a year. Ms. Hyman, 30 years old, and her co-founder, Jennifer Fleiss, 27, who met at Harvard Business School, are attending this week's Fashion Week as buyers, on the look-out for styles that customers will love, wear – and return.
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