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Ma Yun million US dollars investment in the US rental platform Share wardrobe "Spark" can "Liaoyuan" do?

via:博客园     time:2018/3/16 13:05:59     readed:782

Wen/Shi Xiaoyue

“Shared Wardrobe” is not a new concept, starting from 2009, Silicon Valley has appeared on the first foreign rental dress project ——Rent the Runway.

Recently, Chairman Ma Yun and Executive Vice President Cai Chongxin of Alibaba Group have invested US$20 million in the US rental platform Rent the Runway (RTR) through Blue Pool Capital.

Since the birth of the shared wardrobe model, before this, many domestic rental clothing platforms have not yet reached the “early day” and have ceased operations. The entire rental market has long been in a tepid state of silence.

Therefore, this investment can be said to have played a "needle" in the domestic recessioned shared wardrobe.


In the apparel industry, nature-loving women have always been the main group of clothing consumption, and women's apparel industry also occupies a huge market share. But as the saying goes, "women always have a dress in the closet", women have a new attitude toward clothing, and each new dress is facing the tragic fate of "decorating" and "deceased". Based on this, a new way to buy clothes & mdash; & mdash; & ldquo;shared wardrobe & rdquo; quietly struck.

Shared wardrobes are similar in pattern, and their core is renting. Monthly, quarterly, semi-annual, or yearly payments are paid on the platform of the shared closet as its members, and then each time a rented suitcase is selected on these shared closet platforms, the exchange of express delivery is used to achieve the replacement of clothes. This is Wardrobe "shared" meaning.

The investment in Rent the Runway, the US rental platform, was not the first attempt of Ali on the fashion rental platform. In September 2017, Ali was one of the leading investors and invested in the domestic women’s monthly rental platform “Yi Er San San”. Prior to this, the two parties had started cooperation and the “Yi 2 3rd” access to the sesame credit platform and leased users with a sesame credit of 600 points or more could be free of a deposit of 300 yuan. For Ali, in addition to the innovation of the business model, this time heavy investment is no doubt to improve its layout in the leasing business.

According to public information, Rent the Runway was established in 2009 and mainly engaged in dress and apparel leasing. Starting in 2016, it started to transform and increase daily clothing rental services. Before the investment of Ali, Rent the Runway has completed E-round investment. In 2010, they were awarded US$15 million round A financing in 2010, US$15 million round B financing in 2011, US$2.4 million round C round financing in 2013, 60 million D rounds of financing in 2014, and 60 million US dollars rounds in 2016 Financing, after obtaining Alibaba's round of investment, Rent the Runway has a total financing of approximately US$190 million and the company’s valuation is expected to exceed US$800 million.

On Rent the runway, users can choose to rent a single piece at a retail price of around 10%. The clothes can be changed at any time, and the platform side will bear the postage and dry cleaning expenses. In addition to the price advantage, Rent the runway launched a offline experience store in 2016 in response to the user's physical space experience in the trial installation. It supports fitting and leasing, and online and offline linkage to improve user stickiness.

To make luxury goods like fast-moving products generally circulate, there are often new clothes to wear and not to waste, which is extremely attractive to female users who are unable to purchase high-end brands in their daily lives.

At present, there are many shared wardrobes similar to Rent the Runway in China, but the overall development situation is not optimistic. In our country, the "Sharing Fire" that can be shared in a shared wardrobe can "Wonderful"? With this problem, this article will take a look at the shared wardrobe from the shared financing status of the company's domestic and foreign companies, and the profit model, and analyze the status of the shared wardrobe industry and the current difficulties.

Shared wardrobe financing status

The following figure is based on incomplete public information, from the company's establishment time, type of company, financing situation and amount, rounds, etc. on the status of shared wardrobe financing in China is summarized.



1. Sharing Wardrobe Industry Financing Round

According to a company that has disclosed financing, it is known that at present, there are about 8 companies that have been financed by China's shared wardrobe. Most of them are in the Angels and A rounds, and the fastest companies have already reached the C round.


2. Sharing wardrobe company establishment time

From the establishment date, the earliest shared wardrobe company Rent the Runway (RTR) was founded in 2009. In August 2014, the goddess school was established and China began to emerge as a business model for clothing rental platform. This stage is mainly based on clothing and other special scenes of clothing rental. From 2014 to 2016, it was also the peak period for the establishment of a shared wardrobe company.


Two Existing Earnings —— Rent and Third Party Branding


Taking the domestic shared closet platform “Yi 23′′ as an example, the mode adopted by Yizhuangsan is the rentable purchase mode, as long as the clothes are in the library and can be added to the trunk. Currently, the highest batch of clothing on the platform is worn more than a dozen times, while the Rent The Runway in the United States can reach 30 times for each user.

The benefits of this model are reflected in two aspects:

First, the cost of clothes purchase is fixed, and with the increase in the frequency of clothing circulation, the rental income earned by the rental platform increases, and the profit generated in the middle of the rent increases with the cumulative frequency of rental clothing;

Second, the clothes on the platform can be purchased directly by the user. If a piece of clothing is bought by the user after being rented several times, it is equal to giving a profit to it.

In addition, many rental clothing platforms increase the proportion of self-owned brands, design their own products, and place factory orders. The cost is only half that of the introduction of the brand and the profitability is wider.

Third party branding

The reputation of the clothing leasing platform and the monthly alive will attract many domestic and international light luxury brands to settle in.

At this time, for a third-party leasing platform, on the one hand, it can earn rent; on the other hand, it can expand its influence; at the same time, if renters like it, they can also sell clothes by the way.

The double revenue from rental and apparel sales will help ease the pressure on the platform's capital and inventory, so that the leasing platform will no longer need to buy out branded apparel to release rent, but it will also be able to use the rent. This light model not only does not create cash flow pressure, but it also adds extra uniform styles.

Shared wardrobe business key: cost and supply chain management

In August 2014, the establishment of the Goddess School opened the prelude to the Chinese costume rental. In the next three years, there were a total of 12 investment events in the shared closet sector, with a total financing of 846 million. However, the head company has not officially started the war. The market has already undergone a round of reshuffle.

Beginning in late 2015, Mocha Cases, Ai Meiwu, Yuyi and other platforms ceased operations. Until September last year, Yiersan completed 50 million U.S. dollars of C round of financing, and obtained the largest single financing in this field. After Alibaba, Sequoia, IDG, and Jingwei waited in line, everyone began to face up to the shared wardrobe. . But then, the entire market entered the wait-and-see and quiet periods.

This time, Ma Yun generously explored Rent the Runway (RTR), which once again attracted people's attention to the shared wardrobe.

Earlier, Yizhuang San CEO Liu Mengyuan said in an interview that the "shared wardrobe" model of the outbreak is to change from the traditional high-end dress rental to daily dress rental, the future of the Chinese market is very large. According to her, currently clothing II has achieved profitability on a single point economic model. Experts believe that "shared wardrobe" does seize the pain points of women's clothing, but the user habits training and market expansion still takes a long time.

1. Market Environment and Development Status

According to data from the China Industry and Business Research Institute, the sales volume of China's women's clothing market increased from 41.17 billion yuan in 2011 to 732.4 billion yuan in 2015, with a compound annual growth rate of 15.5%. It is estimated that the retail sales of China's women's clothing market will reach 1.3996 trillion yuan in 2020. From 2011 to 2015, the average consumption of women's wear increased from 730.1 yuan to 1261.8 yuan, a compound annual growth rate of 14.7%. It is estimated that the average consumption of women's clothing in China will reach 2,368.7 yuan by 2020.

With the change of people’s consumption concepts and the improvement of women’s economic capabilities, plus the fancy marketing of Taobao, Tmall, and JD.com, women’s spending on clothing will only increase “more and more”.

As the saying goes, women always have a piece of clothing in their closet.

Women’s inherent love for beauty requires a high level of dress code and relatively frequent replacements. Clothing leasing meets the needs of women for high-end clothing just at a lower price.

In the past two years of the "sharing economy" bombing, the concept of consumers has undergone great changes. Many things do not necessarily need to be possessed. Sharing with others is also a good way. For example, riding a shared bicycle to the subway, selling salted fish to sell unused headphones, and sharing a room through Airbnb. By sharing the wave of economy, the market has been educated, and consumers’ awareness of shared leasing has continued to increase. The main players in the current market consumption have handed them to the post-85s and the post-90s. Their ideas and concepts are open, and their acceptance of new things is relatively high.

Charging treasures, umbrellas, basketball, and even gyms have all been shared "". Well, supposedly, sharing clothes should not be a problem either.

2. "Share Wardrobe" The Feasibility of Daily Garment Rental Mode

The global chairman of IDG Capital Xiong Shougu believes that it is a new format and that many things can be shared, but not every one can maintain a healthy and sustainable development, and the criterion for measuring development is to test it on the market. "If only rely on burning," Investors' money is not sustainable, and products and services that users find useful can support the company's development.

"Yi Ersan," Liu Mengyuan believes that the "sharing wardrobe" is a major trend in the future. In the four areas of clothing, food, housing and transportation, three other directions have already produced a shared-economy unicorn company. Costume sharing is also two years. The hot pursuit of the capital market. And shared wardrobes and daily purchases are not in conflict. Take Yizhuangsan as an example. In fact, it is standing at the meeting point of the sharing economy and new retail. Through the lease try-on model, the products reach the consumers. Thirdly, in fact, it is doing a deconstruction of the traditional e-commerce purchase behavior. The membership-based fashion monthly platform will be an important direction for apparel e-commerce in the future.

“Shared Wardrobe” industry company goddess CEO Xu Baizi also believes that women wear their pain point: 80% of modern women's wardrobe wear less than 5 times, shared wardrobe can solve this problem at a low price. Reduced pollution and waste, more environmentally friendly. As to whether this model can be promoted, the key is to improve the operating efficiency and improve the flow of clothes.

3. The pain and predictable future of the shared wardrobe industry

In recent years, the "Shared Wardrobe" model has been in a state of affairs. On the one hand, we continue to invest in the tide of the shared economy. At the same time, however, there seems to be a paradox in the transformation of its business model.

"The current domestic second-hand goods culture does not, the user has not yet used to go online", rent, especially clothing, this personal category. "Entrepreneurs urgently need to solve these industry pain points:

Cost problem

In the shared wardrobe business model, the cost of sending and sending clothes is the responsibility of the platform. Express delivery cost is one of the important expenses. If the consumers continue to return their clothes every day for 30 days in a month, the delivery cost alone will cost about 200 yuan, and the platform will not be able to make ends meet. A person in charge of the rental platform said that "this part of the cost is a hard one. Without increasing the rental cost, it is difficult to guarantee the quality of express delivery services, let alone the quality of clothes." ”

Concept issues

Although the domestic sharing economy market is hot, people are gradually embracing the "shared" emerging lifestyle, but the concept of shared wardrobe has not been popular. Because for the Chinese people, clothing has always been in the context of privatization, sharing clothes with others has obstacles in terms of hygiene and psychology. Many women are unacceptable for sharing clothes for a long time with strangers. Even Rent the Runway, which has achieved initial success in the United States, started from the use of low-cost and expensive dress leases, and gradually expanded to the daily and unlimited garment changing series.

Supply chain control issues

At present, each piece of clothes on the rental platform will probably transfer 20-30 times. Repeated circulation of clothes, consumers have concerns about the health of clothes, and clothing is non-standard products, many styles, the same style is also divided into different sizes and colors, to meet the needs of different consumers, for inventory management and selection ability It is also a big challenge. How to balance the cost of controlling inventory with the needs of users, applying the monthly subscription model for clothing and changing it indefinitely, testing the ability to control all aspects of the supply chain.

In the age of the Internet, the concept of sharing is becoming more and more popular. Under the background of “sharing economy”, the shared wardrobe of new sharing models can only reflect on products and services to support the follow-up development. Whether shared wardrobes can be shared “beautiful and beautiful” is still waiting for the market to test.

(Note: The picture in the text comes from the internet, and the copyright belongs to the original author)

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