Closet rent: how much can you earn on hire of clothing

Economical

Rental clothing is one of those areas that show growth during the economic downturn. “The gaining popularity of shared economy — the so-called “Economics of participation” when consumers prefer not to own and use things,” says Marina Ershova, head of evaluation of the effectiveness of sales and marketing communications Nielsen Russia. According to the company, 45% of Russians are ready now to use various other people’s stuff, 80% — recognize that now is not the best time to update your wardrobe. “The price of designer models has grown significantly, and to buy a dress for one time the consumer is now much more difficult, both financially and psychologically,” — says commercial Director Fashion Consulting Group of Anush Gasparyan.

A pioneer economy the total consumption of clothing” — American Jennifer Hyman, who back in 2009 started to purchase designer clothing at a wholesale price and rent it for rent. The service now serves about 5 million customers in the U.S. in 2015, experts Forbes.ru estimated value of the company at $1 billion. Gradually the market rent clothes segmenttotals. Came rentals for men (male version of The Ms project. Collection, clothes in larger sizes (Gwynnie Bee), luxury handbags (Bag Borrow or Steal). In 2012, Americans Brett Northart and Rakesh Tonda created LeTote is the first service that offers rentals for casual wear. For $59 per month LeTote the client receives a set of clothes, and a week later change it for a new one. There are vip platform, where a narrow circle of owners rent out expensive things (so, for example, Western service VillageLuxe).

“Life in communal apartments, the things that had to wear for the older brothers and other “pleasures” of the Soviet past, make the topic “common things” painful to Russians”, — explains the reason for the late development of apparel rentals in Russia Alexey Fedorov, founder of the service personal ads Aiwona.

The market of Bicycle clothing is small, for example, according to the service 2GIS Moscow operates a total of 15 rental locations clothing, but, according to market participants, in the autumn of 2015, the number of such companies grows. The profitability of these services is higher than classic store, said Anush Gasparyan FCG from: “In the case of a lease does not need to worry about the balance, no strict reference to seasonal procurement. This allows you to save on costs and record to quickly achieve payback”.

Moussa Project — the outrageous rent

Showroom Moussa Project sisters Victoria and Helen Moussa was one of the first rentals of designer clothes in Moscow. In the late 1990s, the girls worked with editors and stylists in glossy magazines, and in the 2000s, Elena moved to new York. “In the United States were already popular designer showrooms, where stylists gave professional photography,” says Victoria Moussa. — In Russia, however, interesting clothing was in short supply. We decided to ease the domestic life stylists and began to haul unusual outfits from new York”.

<p>Sister Victoria and&nbsp;Elena Moussa</p>

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Photo: Vladislav Shatilo/RBC

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Sisters Elena and Victoria Moussa

At the start in 2009, the sisters spent about $100 million private savings — these funds Moussa went on the first buying clothes, renting space at Patriarch’s ponds, its alterations and repairs.

In the first month showroom has experienced an influx of clients when the founders worked in the world of glamour and word of mouth. Professional stylists gradually began to dilute Moscow’s fashionistas who were looking for a shocking outfit for “going out”. “Our client is of a girl with above-average incomes who value their money and, most importantly, a place in the wardrobe,” says Victoria. — Secular parties happen quite often and “walk the” one dress twice is considered bad manners”.

In the collection of the showroom outfits from Dolce&Gabbana, Oscar de la Renta, Chanel, Vera Wang and other American and European brands make up a large part of the range, but there is also the work of Russian designers. In addition to dresses in the Moussa Project is the shoes, accessories and jewelry. To take the outfit to rent for three days you can for 10-20% below market rates by providing a copy of the passport. Week rental will cost twice as much. The average check ranges from 8 to 19 thousand rubles.

Like other such companies, pay for dry-cleaning is included in the rent, but the repair of damaged items is paid by the client. If the item is lost or damaged beyond repair, the lessee is obliged to pay its full value. With this situation the showroom faced only twice over the past 7 years. “We don’t have random people, so we work without collateral,” explains Victoria Moussa.

After the thing has been in the 4-5 hands, it goes on sale, which is happening in the show room. Revenue from sales is spent on the purchase of new outfits assortment is updated every 2 weeks. Buy dress can not only on sale, but after wearing it, in this case, the rental price is deducted from the price of the dress. Buy outfits not often: 90% of revenues Moussa Project brings it to rent.

The main problem is the business is subject to seasonality. The influx of customers happens in December, early spring and early summer. “Our clients strongly affect weather: when the weather is rain and the darkness, the desire to dress up disappears, but as soon as the sun Peeps out of the secular Moscow alive”, ” Victoria says. The revenue is also highly dependent on who waits on guests: in the days when the audience operates one of the mistresses of the showroom, the turnover increases by 30-40%. In 2015 the number of clients of the service increased by 20%, now a month could rent 60-120 dresses. (financial figures in the table)

Dress Up Bar — beauty training

The decision to launch the service for “going out” it was very women, says the founder of Dress Up Bar Lina, Demikova. She worked as a private stylist and image-maker: preparing clients for important events, putting together outfits, shoes, hair and makeup. “Usually in the process of preparation had to rush between shops and show-rooms that brought a lot of inconvenience. Once I get sick of it, and I decided to launch my own project, where you can get a full cycle beauty-training.”

<p>the Founder of hire dresses Dress Up Bar Lina, Demikova</p>

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Photo: Oleg Yakovlev/RBC

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The founder of hire dresses Dress Up Bar Lina, Demikova

Dress Up Bar offers to take the dress and accessories rentals, even for a few hours, leaving their belongings at the time of the event in the personal Cabinet, make-up and styling in a special “beauty-corner”. This format all-in-one was new for the Russian market in 2014, but quickly gained popularity: helped the recommendations of the “star” customers Demikova. At the start of the fall 2014 Lina together with his partner Anna Boyko spent about 3 million rubles of their own savings.

The first batch of dresses to hire, Demikova bought in London. “Contracts with brands was not yet, I bought designer clothes retail, and as in the good old days drove home the hundred dresses in suitcases,” she recalls. Now in the Dress Up Bar contains about 700 dresses of Russian and Western designers: from affordable outfits for a few thousand rubles to chic dresses more expensive than 150 thousand “Such cost variety allows you to “get” girls at service: when you take a cheap dress for a date, she will probably come back for expensive outfit for prom or a social occasion,” says Lina.

A major purchase of dresses (about 200 pieces) occur three times a year: before New year, graduation and the summer season. Each dress is between 5 to 30 cycles rent, depending on the quality of the material. Unlike most similar services, Dress Up Bar does not sell rolling dresses: after multiple leases, they are simply written off.

About 40% of its revenue Dress Up Bar is the income from the stag and photodna. This can be a women’s corporate, party before the wedding or after the birth of a child, where the girls try on clothes, painted, and photographed, explains the founder. To organize bachelorette party Dress Up Bar is 15-50 thousand rubles, depending on held in the showroom of time and package (of outfits to try on, master-classes). For 1.5 years the company has conducted about 60 such events. Expenses of the company divided like this: 30% is spent on rent, dry cleaning and the purchase of dresses and 10% for renovations.

Average check rent dresses in the Dress Up Bar is 4.5 thousand rubles., beauty-services — 3 thousand rubles. High season can yield up to 350 clients per month, in early February and March, the figure drops to 70 orders. To self-sufficiency, the project was able to go through six months after launch, now Dress Up Bar works with the net profit margin of 13%. “The worse case in the retail sector, the better — we have — says, Demikova. — Over the past two years selling evening dresses dipped more than other segments reteylovy: no ordinary dress can do, but without the down jacket are unlikely”.

“Closet” — the fashion subscription

In 2013, Eugene Wolf, selling an apartment in his native Tatarstan, along with two friends, moved to Moscow, deciding to go into business. He opened workplace (equipped space to work freelance for designers. Now the Wolf together with partners manages six workplace in Moscow and St. Petersburg.

<p>the Entrepreneur Eugene Wolf</p>

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Photo: Oleg Yakovlev/RBC

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Entrepreneur Eugene Wolf

In the fall of 2015 Eugene decided to use the experience of the Russian designers for the launch of a new project. “Once I realized that I have nothing to wear: almost all the photos I was in one and the same. I thought how cool it would be for every day to wear new stylish clothes and to buy only what is really suitable,” recalls Wolf. So the idea to rent out “Luke” for the Russian beginning designers — sets of clothes for each day.

To get the kit, the customer on the website of the project “laykaet” any things and creates personal wardrobe — week set of clothes in the amount from 20 to 50 thousand rubles, consisting of 3-5 sets of clothing, accessories and jewelry. The kit is tailored to seasonality and customer sizes. Now in the line of “Wardrobe” presents the sizes from 40 to 46, says Wolf. A week later, the kit needs to be exchanged for a new delivery. The monthly subscription costs 4,9-7,9 thousand rubles, depending on the total cost of the garment. Now in service the only women’s clothing, men’s version of “Wardrobe” Wolf plans to launch in July 2016.

This business model allows you to earn money not only on rent but also on selling things. “We called their service a long fitting. It’s like a test drive for cars: girls wearing clothes during the week and during this time, you know, they are ready to give something back or want to stay with her for a long time,” says the founder. According to him, each client Wardrobe buys at least one thing per month: from jewelery for 800 rubles to kimono for 24 thousand rubles.

The project started in October 2015 with a budget of 400 thousand rubles: 100 thousand rubles of their own savings and 300 thousand rubles, collected on crowdfunding site Boomstarter.

To encourage customers to return clothes with no stains or torn seams, the company came up with the reputation of rating agencies: the more often a person uses the service and how accurate are drawn with clothing, the higher the discount.

Things that fall into the catalogue “the Wardrobe”, the Wolf selects in designer showrooms. The company works only with Russian designers (around 60 brands) — this facilitates shipping and reduces the cost of the subscription. The selected items are photographed and sent to Moscow warehouse that the company leases. “Closet” does not buy clothes, and takes her to the realization — calculated with the suppliers after the sale things. Usually clothes after four cycles of the rent goes to private sales, which are open for customers with high “reputation”. On these occasions the clothing is sold at a price 2-3 times lower procurement.

The pilot launch, which lasted 4 months, the project brought nearly 200 customers and 3 million rubles of revenue, 30% of which — income from the sale of season tickets, with 70% from the sale of clothing. According to Eugene, the project with the first month of work out the payback. “I’m sure people will soon forget all about personal things: to rent clothes for everyday wear is advantageous and convenient — you can forget about washing, Ironing and the question “what to wear” — says Wolf.

Rentmania — from dresses to lawn mowers

The idea to create the first Russian online platform for renting “everything” came from businessman Arkady Meshkovsky in the spring of 2012. “His home was collecting dust several tents, which have not seen a single campaign, and a couple of simulators, which have long turned into a hanger,” recalls marketing Director of the company Rentmania Lyudmila Bulavkina. — Interviewing friends, Arkady realized, that a thousand balconies loaded with unnecessary things, which you can rent.

<p>Director&nbsp;of marketing Rentmania Lyudmila Bulavkina</p>

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Photo: Vladislav Shatilo/RBC

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Marketing Director of the company Lyudmila Bulavkina Rentmania

Year meshkovskiy has assembled a team. The first joined the project Lyudmila Bulavkina, who ran a private hire of dresses and had the experience of working in the service of freelancers YouDo.

The founders decided that will act as intermediaries between the owners and tenants of things, getting 20% of the cost of each successful transaction. Decided to start with the clothes — helped the business experience of Ludmila. First things landlords were 12 Moscow offline rentals dresses, then began to catch up with private landlords. Now clothes provide service mostly the usual mods, ready to share their clothes. Only 20% stores and rentals.

Between the project participants is a contract for the provision of paid services and the act of reception-transmission. The electronic form of the contract require passport information and agree to the conditions of hire. After that, the map is frozen the tenant’s Deposit (if there is a host of things), she also deducted the price of the rent. To fix the defects of the leased things the customer shall immediately upon receipt. If after the return the owner declares that the goods are spoiled, the company’s employees act as arbitrator.

In the spring of 2013 Rentmania received investment from the Foundation for Internet development initiatives (FRIA) of 1.4 million rubles (in exchange for 7% of the company that the founders repurchased over 2.4 million rubles in may 2016), then the state grant from the Bortnik Fund of 1 million rubles. Now the company is in talks with two funds on bringing the following investment rounds.

The most popular positions by 2016 steel sports equipment (bikes, scooters, etc.), sports equipment, women’s clothing and children’s products. Among 3-4 thousand sentences about 1.5 thousand — the announcement of the leasing of clothing. 80% of these landlords rent evening and cocktail dresses, 15% — children’s clothing, about 5% — men’s suits and tuxedos.

Neither the rent nor the Deposit company does not regulate. Rent the thing on Rentmania can be an average of 10% from its market price. The average check for the rent of the clothes is 4 thousand RUB. a Man once committed a transaction through Rentmania, is returned to the service 4-5 times a year, according to the company. According to Bulavkina, a surge of demand for lease service things started in the fall of 2015. “People stopped worrying about what the thing is someone used,” says Bulavkina. — It is now fashionable to efficiently use its budget and to profess the philosophy of total consumption”.