Resilience and Purpose During Challenging Times

Rent the Runway 2.0 - Redefining the Future of Fashion with Jennifer Hyman

Jennifer Hyman, co-founder and CEO of Rent the Runway, joins Ken Pilot to discuss the company's journey over the past 15 years.

Jennifer Hyman is the Co-Founder and CEO of Rent the Runway, a company that is disrupting the trillion-dollar fashion industry with the world’s first and largest shared designer closet. She has led the company for 15 years through all stages of growth, from inception in 2009 to a scale of more than 3M lifetime customers. Jennifer took the company public in 2021, making her the first woman ever to IPO a company with an all-female executive suite and the 30th woman ever to IPO a company. She has been honored on the TIME Top 100 Most Influential People List and the CNBC Disruptor List for 5 out of 10 years. She also serves on the Board of Directors of The Estée Lauder Companies and Zalando.

Rent the Runway's Origins and Growth

• Hyman pitched the concept to Diane von Furstenberg 48 hours after having the idea

• The company now rents about $5 billion worth of designer clothing annually

• Rent the Runway works with over 1,000 designers and has had 100% brand retention over 15 years

Business Model and Profitability

• The company has focused on becoming capital-light, with revenue sharing agreements with brands.

• Rent the Runway has more than doubled its margins over the last few years.

• The goal is to reach free cash flow breakeven.

Challenges and Resilience

• COVID-19 presented significant challenges for the business.

• Hyman emphasizes the importance of resilience and staying in the game.

Marketing and Customer Acquisition

• The company is refocusing on top-of-funnel marketing activities.

• Rent the Runway is leveraging its community and introducing new initiatives like the "Icons" program.

  
  

Physical Retail and Partnerships

• Hyman expresses interest in partnerships with retailers like Sephora, Ulta, or Zara.

• Previous partnerships with Neiman Marcus drove significant foot traffic.

Industry Insights

• Hyman discusses the disruption in the fashion industry, particularly from companies like Shein and Amazon.

• She notes the changing perception of brand value among consumers. T

• echnology and AI Rent the Runway is exploring AI applications in various areas, including photography, customer service, and search algorithms.

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