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,
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