Hirestreet was established in 2017 in Newcastle by former strategy consultant Isabella West who wanted to change the fast fashion market by encouraging women to rent clothes rather than buy them.
What they do
Initially starting with just a few dresses, Hirestreet now rents out outfits by the thousands. With more than one million site users, the firm is working with brands like French Connection, Whistles, Lavish Alice and Ghost, renting affordable outfits to mostly young, working professional women looking to hire outfits for special occasions, including weddings, parties and holidays.
During the pandemic, the pioneering fashion rental firm launched the technology platform Zoa, offering their tech to other businesses, allowing retailers the chance to offer rental as an option for their customers.
Why is it an example of the circular economy?
GBP 3 billion is spent on summer wardrobes in the UK each year, with an estimated 50 million summer outfits being worn just once before being discarded. By offering accessible clothing to multiple customers, Hirestreet provides a more environmentally friendly alternative to the fast trend culture in which inexpensive clothing is rapidly produced by mass-market retailers and worn and disposed of quickly by customers.
Pioneering a strategy for the after use stage, the company sells garments that have reached the rental cap – targeting at least 20 wears per item, and aiming for 30 – or that are not fit for rental anymore.
What are the benefits?
Users
44% of young women said they would like to be more eco-friendly in their approach to fashion, yet 80% said prices are a priority. Users were typically to buy at least one item per week from high-street/fast fashion and spend £30. By combining a rental model with an accessible price point, Hirestreet allows customers to spend less while preventing them from having a wardrobe filled with unused clothes. The service gives customers flexibility by allowing them to select multiple outfits, and decide for how long to keep them.
Environmental
Hirestreet is seeking to increase clothing use and has saved customers over 2 million pounds by renting instead of buying. They also pay careful attention to their operations, opting to partner with sustainably-minded fulfilment centre ACS. Since 2017, ACS has reduced its annual waste management costs by 70%, by introducing LED lighting they have reduced their annual CO2 emissions by 15.7 tonnes. They have saved 1,800 m3 of water, 139,000 KWH of gas and CO2 emissions by introducing a cooler dry cleaning. All packaging cardboard, polyethylene and paper are recycled. Hirestreet’s new business, Zoa, allows brands and retailers to reduce their impact on the environment by introducing a complimentary rental option for their customers.
Business
Renting products offers new revenue streams for businesses, especially at times of supply chain disruption. There is an increasing appetite for clothing rental. In fact, revenue at Hirestreet grew 1800% over Q2 2021.
How it works in detail
Rental service Hirestreet stocks major brands, including Zara and ASOS. Hirestreet users, mostly 18 to 35-year-old women, can book outfits in advance and hire them for four to 16 days.
Users select the size, rental period and delivery date. They can also choose to add insurance to any of their items before proceeding to checkout, to cover against any accidental damages. Their usual order packaging is resealable and will contain a return label. Once the garment has been worn, it can be returned via Royal Mail to Hirestreet’s warehouse in Glasgow.
After several rentals, some of their garments start to show signs of wear, which is why Hirestreet is selling some items through the Hirestreet Pre-Loved Collection. All the outfits are available to buy at a discounted rate of up to 70% off recommended retail price.
Zoa rental, managed by Hirestreet, is the UK’s first “Rental as a service” solution. It gives fashion brands the opportunity to add rental of their clothing as an option alongside buying. Brands provide the stock, but Zoa takes care of all of the rental technology, cleaning, logistics and customer service. Zoa is supporting the launch of 4 new rental startups this quarter and is set to be the go-to provider for circular commerce in the UK.
Published 23 November 2021
