Designer fashion brands are increasingly turning to on-demand rental services like Rent the Runway and Armarium to reach new customers and figure out what they like. By tapping into the customer data from on-demand services, designer brands are able to detect trendy items and designs of the season and customize part of their collections. Working with rental services also helps designers appeal to their users, who typically have yet to develop brand loyalty to any particular fashion brand and therefore represent a valuable audience segment for brands to target.
What Brands Should Do
The ongoing collaboration between designer brands and fashion rental services highlights one way brands can leverage the booming popularity of on-demand services to expand their audience reach and gather customer insights. More brands can benefit from similar collaborations by enabling a wider audience to sample their products and services and getting a better read on their preferences.
To learn more about how brands can make use of the digital tools available to reach shoppers across channels, check out the Boundless Retail section of our Outlook 2016.