The rental services are gradually making their way into the fashion industry. Renting a fashion luxury product, such as handbags, is more common than ever. It is helping several fashion icons and influencers to try and experiment with various brands and styles without purchasing them. It is an intriguing business model to experiment and gain insight into what would customers like. Likewise, installing a customization solution offers you a similar platform that allows customers to experiment with their looks and give their flair to the product they wish to buy. The handbag design software is a customization tool that enables brands to revamp their business model by helping their customers take the driving seat and decide and design their handbags, purses, and backpacks, among other bag products, as their fashion sense. With the help of a new-age model, buyers dominate what brands should manufacture and what shouldn’t be produced.
Bags Design Software Offers Solutions to Gain Competitive Edge
The fashion industry and its supply chain were hit hard by the pandemic and its events. The need for party outfits and accessories soon disappeared as people were forced to stay at home and work remotely. However, the new normal lifestyle didn’t prevent fashion brands from recognizing the potential for rental to move inventory and reach new customers, particularly to a growing demographic of digitally savvy, sustainability-minded customers. Therefore, many leading fashion houses are trying their luck with the rental services, but it is still in its budding phase and will offer more lucrative opportunities to brands in the days to come. However, brands must first ensure that they have to be financially savvy if they plan to go this route. In fact, the Wall Street Journal conducted a survey to see whether the model benefits customers or not. It was revealed that rental fees could add up quickly, especially for customers who don’t purchase a membership, which entitles them to discounts. A $29 weekly rental at one site will cost only $15 if the buyer adds a monthly $4.95 membership fee. Customers also should look beyond straight rental costs because shipping and insurance fees can add to the bill. Insurance is usually optional and can be purchased to cover potential problems such as damage, loss, or excessive wear and tear. Rates depend on the bag but could run $59 to ensure a pricey Chanel that rents for $450 a month.
Therefore, brands need to study how they should approach the evolving market scenario and offer new collections to consumers that don’t affect their revenues and keep the market growing.
So, let us dive into whether you should rent or buy a bag and the companies that offer designer bag rentals:
- Offers More Options to Explore
The decision to offer rent services or a traditional business model depends upon the fact how much you want to expand your business horizon and increase your customer base. Designer bags and purses have high quality and higher desirability, making them the best product to rent. Also, brands can charge more for their fashion items as they allow their customers to experiment with various products and can help them uplift their social status and fashion sense. Renting a designer bag is an excellent way to earn more profits for brands, but it also helps customers identify with their internal style icon and have an in-depth understanding of what they desire. It also gives them the opportunity to assess how much they like the bag before buying it for long-term use. And lastly, they get to wear the latest trends and save money by resisting the urge to accumulate a closet full of items you rarely use. Besides, renting has helped brands and buyers experiment with their various looks and see which style suits them the best. Also, providing renting a designer bag, brands can consider only doing it occasionally as it helps them to be budget-friendly. Additionally, it enables customers to enhance their lifestyles and buy expensive bags at a relatively cheaper price. For example, renting a bag at $50 per month for a year will cost them $600, and that is enough to buy them a designer piece they can keep long-term.
Therefore, many leading brands are investing in the fast-growing rental market. The latest luxury conglomerate to join the stream is Kering, signalling investment in upmarket handbag rental service Cocoon. The UK-based company offers new, limited-edition, and pre-owned vintage handbags that include collections from Gucci, Prada, and Bottega Veneta has raised funding from Kering. The funding is used to extend the retail brand’s inventory of luxury handbags, build operations, and extra headcounts. The brand intends to build on our position within the retail space.
- Taps New Age Consumers
Gen Zs and millennials have been on the radar of many fashion brands; however, converting these dominating age groups into loyal customers has been challenging for brands. Their requirements, expectations, tech-savvy attitude, and many other factors are hard to catch up with. In this ever-evolving landscape when companies are unsure about what their customer will like, the rental market offers the best bet to brands and allow them to tap into unexplored customers. Besides, it has been found that despite the tough trading moment during Covid, the rental models are poised to accelerate again in a post-pandemic world. In fact, a study by BCG in partnership with the Altagamma Foundation found that even during the challenging last year, 21 per cent of Gen Z and millennials rented products. This shift in the trend could be attributed to the fact that today’s buyers are highly concerned about the rising pollution caused by the fashion luxury industry. They are looking for products that show more value and respects their belief, and rental market serves the best purpose in the current scenario. Besides, it prompts them to think more about access versus ownership.
Moreover, rental has the potential to be a customer acquisition tool, especially with younger customers, as well as be used to test different products and styles and drive returns on low performing inventory. According to the Bain and Company report, a sustainable luxury company’s growth for the next ten years could hinge on rental and resale, with rental accounting for 10 per cent of revenue by 2030.
Likewise,bag design online, a customization solution, helps brands lure in more modern buyers by designing their handbags, bags, purses, and backpacks. The tool allows customers to flaunt their handbags as a status symbol and make bold fashion statements as they can customize their bags using various styles, sizes, shapes, fabrics, and patterns. The custom-made software enables customers to create stylish and unique handbags that allow them to experiment with their ideas and creativity. The tool has a built-in digital solution that enables buyers to view their designed product in real-time and also allows brands to offer a real-time engagement and delivers the freedom of creating their unique handbag design. It gives them the freedom and opportunity to select a handbag type, select the components, such as front, back, side panel, lower panel, inside shoulder strap, and metal hardware, and apply their finishing touches including, various colored leathers, even add initials or text.
- Offers Platform to Experiment or Join Forces
The fashion industry has always been about intense competition, continuous research, unique products, and those who fail to adhere to these norms fall flat in the industry. And when it comes to venturing into a new business domain or adopting a new business model, it is crucial to have someone who has your back. Joining forces with already powerful or emerging brands that have a good hold over the market can help expand your customer base. Similarly, many luxury companies are joining hands with other leading brands that will help them to learn from them about the changing landscape in the fashion industry. For instance, a leading fast-fashion company, Zara, announced a collaboration with Belgian Dutch fashion collective Kassl Editions for a capsule range of ready-to-wear, accessories, and homeware. The capsule is anticipated to debut at Milan’s interior fair, Salone del Mobile, from 5-10 September. The Kassl Editions brand launched in 2017 with coats that were made available in various fabrics, lengths, and colors. Its utilitarian appeal has since been expanded into bags and accessories. The partnership is expected to bring a certain cache to high street retailers; they are rarely profit drivers. Zara continues to invest heavily in product development under its name, but smaller collaborations may bring kudos and entice a customer who is not yet shopping at the giant Spanish retailer.
The collaborations offer a win-win situation for brands and allow them to capitalize on each partner’s strong points and help them expand their business. Therefore, brands are leaving no stone unturned to gain the best of both worlds. These partnerships enable them to thrive in the new domain, avoid competition with other bigshots and also aid in leveraging the existing customers and maintain their elevated status.
- Commences New Fashion Trends
Today’s buyers are all about trying anything different, unique, and more inclusive. The traditional fashion model has never accepted the people as they are; rather, it has been more critical about their personality, body type, color, and other factors. However, the rising demands for more inclusive fashion have pushed the formidable and traditional stakeholders backwards and compelled them to adopt business models that are sustainable and gender-free. Therefore, Rob Smith, after working hard for many years on his dream project Phluid Green Label, is all set to spread its wings across the USA. The new label ticks off all the pertinent boxes for inclusivity and sustainability by redesigning the entire business model for the company. The project needs to continue to lead with purpose and humanity by amplifying voices that have been long silenced and offering spotlight to those who have long been overlooked.
Pluid’s creative process begins with RISE, standing for responsibility, inclusion, solutions, and expressions. The intent of the label is to listen to the community and grow its commitment to the care and sustenance of our planet. In addition to apparel, there are accessories, including bags, belts, and more. It is for the first that time that the company is venturing into a domain other than apparel. This is its first time outside of Phluid producing and wholesaling things other than T-shirts and basics.
As we all know, the resale and rental market is being revisited and rebooted, especially post-pandemic; luxury brands must look for ways to help them look good, produce better, and sell the best. The new market is driven by a heightened desire to gain more revenue while catering to the environment and customers’ requirements. In fact, the global resale market is expected to grow by 93 per cent to $64 billion by 2024, according to Stylus. Consequently, more brands are venturing into the new market to grab and explore more lucrative opportunities that may look daunting initially but can help flourish in the market in the coming days. Starting a sustainable product comes with its share of complexities, and therefore, offering rental services can only ease the transition and kill the two birds with one arrow, that is, revenue and ethical production.
- Keeps the Inventory in Check
The biggest problem brands face when consumers like their products are the “out of stock” message they have to put against it. However, with rental services coming into the scene, brands don’t have to worry about these anymore as the buyers will be subscribing to the product or renting it out for some time, and those willing to pay the extravagant prices can also purchase it. In this scenario, brands will always have the product in the inventory and can also circulate the unsold items by renting them out. The model works especially for the customers w1ho are in glamorous one-time evening bags that they can’t normally afford, for example, a $990 Dior bag that we spotted online. The premium-priced bag was way out of the league for many customers, and the brand had already invested its resources for its design, research, and other essential elements. But it could have been more cost-effective if the label could rent it to other buyers and let them wear them every day or own them indefinitely and generate revenue through these EMIs and other payment options. Likewise, a Dooney & Bourke satchel rented can be bought online for $319, and a Coach signature bag can sell for as low as $298.
The rental services encourage buyers to spend more and experiment, and try all present in the market. Luxury brands can even offer discounts on their website, and buyers would be more than happy to purchase these products. Therefore, brands like LXR, a Canadian brand, buy bags from leading brands and resell or rent the products to buyers at lower prices. The budding start-up sells pre-loved designer handbags and eliminates the risk of selling duplicate or fake brand products. Unlike companies that work with consignment models, LXR has a network of expert luxury buyers in Tokyo and Canada who search for one-of-a-kind designer handbags, authenticate them (not only to make sure they’re genuine but also to ensure they have not been altered in any way), purchase them and then offer them to their clients.
LXR’s business model is also incredibly personal and very much grounded on ethics and customer satisfaction. Since it is a relatively smaller company and owns everything it sells, building close relationships with customers is crucial, and therefore, they are always upfront to negotiate prices, accept returns, and offer to consign certain items, for short periods of time, if the customer selling them is not happy with the initial purchase price LXR offers.
Despite the rental market being in its budding stage, the signs for its prosperity in the fashion industry are extremely encouraging. In fact, more brands are coming around to try their luck in the latest landscape. Renting a designer bag offers fashion lovers a way to stay in style without breaking the budget. And as long they can enhance their lifestyle, the rental bags can save money, and they can still keep up with trends. Besides, it also helps brands to cater to environmental needs and reduce carbon footprints. The bag design software online by iDesigniBuy offers brands a similar set of solutions and enables them to meet all the customer’s requirements while keeping its production in check. Also, its customization solution can help brands to revamp their business processes and become more flexible to adapt to novel trends in the fashion industry in the coming days.