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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322 Kieu-Linh Caroline Valverde - Asian American Studies Professor