Rent-the-Runway, a New York City-based firm recently secured Debt based funding of $200Mn to finance its growth plans. Centred around a clothing rental "service" rather than a "product" ownership, is it signalling a need for change to fashion & apparel PLM vendors? Would this mean that product obsolescence management will become equally if not more important as NPD?
PLM solutions have come a long way from the CAD-oriented design & development focused view to their current form where they are leveraging 4th generation technology and participating as an essential component of enterprise solution strategy. However, business innovations such as Rent-the-Runway would force PLM solution vendors to look beyond product development community and start aligning PLM with Customer, Supply Chain and HCM focusing on commercialisation & obsolescence to truly leverage the service/ experience economy transformation.
Over its first six-plus years, Rent the Runway grew to do one thing very well: Rent out designer dresses to women for special occasions. In 2016, it unveiled a clothing rental subscription with the belief that working women would gravitate to the choice and flexibility that would come with a rotating wardrobe. Today, it’s doubling down.(It) plans to expand the selection of clothing available to subscribers and invest in its logistics to improve the speed of sending out new orders and dealing with returns.