Question

How did the founders of Rent the Runway go about testing their original idea?

What concerns did suppliers and designers have? How did Rent the Runway’s founders dispel these concerns? Describe how the firm seeks to build deep and mutually beneficial industry partnerships

Answer 1

How did the founders of Rent the Runway (RTR) go about testing their original idea?

They visited college campus first Harvard then Yale. They first took a room on rent in Harvard and sent invitation to ladies to come and try dresses and rent if they like it. They came to know the emotional link women attach to fashion and by having designer dress could make them feel empowered. 35% of respondents were excited with it. They repeated in Yale but trying was not allowed, variety of dresses were increased. 55% women got excited with this idea. Next they went to New York and just showed an image of dress and found that 15% women still agreed to rent the dress.

3 What concerns did suppliers and designers have?

It was a new revolutionary idea never tested before, thus it made suppliers and designers skeptical about it. They had questions over brand identity, and target market.

How did Rent the Runway’s founders dispel these concerns?

By doing surveys and test marketing and showing its videos as well as inviting designers to the dress trials, they dispelled all concerns.

Describe how the firm seeks to build deep and mutually beneficial industry partnerships.

It has e-platform where designers can show interest for doing business with RTR. Forty brands have already got associated with it.

They are closely working with designers to get their dresses featured which match according to Rent the Runway’s target market. They give customer information and feedback to designers as a swap arrangement.