How many times has that designer dress been worn? To many fashionistas, that is now beside the question -- a designer dress can, these days, often go from being made to being rented out hundreds of times to finally being sold to its final owner.
It can seem like an unusual business model but, in today's economy, certain style lovers want to get the most wear out of every piece. While only 7% of the average American's wardrobe was composed of second-hand clothing in 2019, that number is expected to rise to 17% by 2029.
The growing demand for second-hand and consignment pieces has been pushing brands that traditionally would have not wanted to be anywhere near used clothing to make it a core part of their brand.
Rent the Runway (RENT) , an online platform that started out by renting out designer gowns but later expanded to everything from blouses to workout leggings, has been the biggest platform in this space since launching in 2009.
Who's Rent The Runway Partnering With This Time?
Over the years, Rent the Runway has partnered with everyone from W Hotels to British department store Selfridges and, when it went public in 2021, was worth an estimated $1.7 billion.
The latest department store to partner with Rent the Runway is Saks Off Fifth. While both department stores are owned by Canadian giant Hudson Bay (HBAYF) , the Saks Fifth Avenue offshoot sells off excess inventory from the main store at discounted prices.
As part of the new partnership, certain Saks Off Fifth stores will have sections with Rent the Runway clothing -- these are the pieces that, after being rented through the platform, can now be bought for around 85% off.
The company works with over 85 designer brands such as Ulla Johnson, Phillip Lim and Giambattista Valli.
TheStreet
While the companies did not immediately respond to TheStreet's questions on how many times a given piece will be worn before it is moved over to Saks Off Fifth, the department store said that a survey of its customers found that 70% bought pre-owned clothes.
Another 80% of those customers said they wanted to see more pre-owned clothing at the stores.
"Through this unique relationship with Rent the Runway, we're introducing new brands, providing exceptional deals and offering pre-owned apparel from a trusted partner that resonates with our customers," Saks Off Fifth CEO Paige Thomas said in a statement.
Is Consignment The Future? Or Will There Be A Turnaround?
There has been some debate on the future, as well as the sustained profitability, of the second-hand clothing industry -- as both startups and established brands branch out into this space, some analysts say that the market risks getting oversaturated at a time when many want new and nicer clothing after two years of staying in due to pandemic-related restrictions.
But while new apparel sales are also going up, a recent study by online marketplace Mercari found that the number of used clothing items bought from October to December 2021 rose by 24% from the previous year.
What's more, many young people are especially likely to do this kind of shopping. Generation Z, or those born between 1997 and 2018, is buying second-hand clothes 250% more than other generations.
The reasons have to with everything from rising inflation to a growing consumer consciousness of the impact of fast fashion.
"Whether renting or shopping resale, the secondhand economy is a critical part of creating a more sustainable future for our industry," Rent the Runway's co-founder Jennifer Hyman said in a statement.
