Ralph Lauren is exploring a circular business model with a rental subscription service.
What they do
Fashion designer Ralph Lauren founded the brand in 1967. Headquartered in New York City, Ralph Lauren makes products ranging from the mid-range to the luxury segments. The company has developed new, more personalised services including ‘The Lauren Look’, one of the industry’s first luxury rental programmes.
As the value of the apparel rental market in the US is expected to reach USD 4.4 billion by 2028 (Statista), Ralph Lauren launched a rental subscription service in March 2021 called ‘The Lauren Look’. Starting at USD 125 a month for the membership, it is one of the first initiatives where a luxury brand has introduced a subscription rental service.
Why is it an example of the circular economy?
Designing out waste and keeping products in use for as long as possible are core strategies of a circular economycircular economyA systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution. It is based on three principles, driven by design: eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature. for fashion. By renting clothes, Ralph Lauren has the aim of increasing the use of garments that might otherwise be purchased and worn only a few times.
Reduce overconsumption
Ralph Lauren's rental model, The Lauren Look, allows the company to respond to growing customer concerns on issues of overproduction in the fashion industry. The Lauren Look provides access over ownership to current fashions while helping prescribers avoid purchasing new clothes.
What are the benefits?
Users benefits
The Lauren Look will allow younger, online shoppers to use Ralph Lauren clothes at a rental price and to optionally replace them with new pieces or purchase the items at a discount.
Environmental and social benefits
The Lauren Look supports the circulation of existing garments that, if purchased, may otherwise remain dormant in a people’s closet. Ralph Lauren also specified that The Lauren Look clothes that reach their rental limit will be donated to Delivering Good, a non-profit that provides people impacted by poverty with new and almost new merchandise.
Businesses benefits
Ralph Lauren will be able to leverage the data and feedback collected from consumers using the Lauren Look platforms to produce items that more accurately reflect consumer trends. This will reduce the amount of unsold inventory and the need for markdowns while satisfying the fashion wishes of its customers.
In addition to reducing waste, prescription rental programs also create recurring revenue streams. Ralph Lauren will have more control over their garments' “next use” with the potential to increase lifetime revenue per product. The Lauren Look will serve as an opportunity for the company to generate direct customer feedback and gain a better understanding of the market. The platform can also serve as an opportunity to acquire new and younger customers, who are more keen to the access over ownership concept expressed through rental services.
How it works in detail:
The Lauren Look
Starting at USD 125 a month, the rental subscription allows members to rent looks from the most recent Lauren collections. The Lauren Look will include all sizes the Lauren collection offers. The membership includes Lauren, Lauren Woman, and Lauren Petite. The subscription service also includes suggestions from expert stylists, as well as free unlimited shipping and returns and dry cleaning.
New products arrive on the web-based rental platform weekly, with members being invited to curate their virtual closets from the most recent Lauren collections. A customer needs at least 10 items in the closet to automatically start the first box.
Once the curated closet is complete and favorite pieces are prioritised, the members will receive their first shipment of four pieces.
Subscribers to the service can access a constantly changing range of Ralph Lauren apparel, including dresses, pants, and tops. Once they have finished with the clothes, they can choose to either send them back and have them replaced by other pieces, or purchase the clothing at discounted members’ prices.
Once the clothes have reached their rental limit, they will be donated to the non-profit charity Delivering Good, which provides low-income customers with new and almost new merchandise.
Next steps
Circular products
The Lauren Look will expand to include other Ralph Lauren brands. At the same time, Ralph Lauren is investing in fibre-to-fibre recycling methods and materials that feel and perform the same as virgin materialsvirgin materialsMaterials that have not yet been used in the economy. (e.g. fibre-to-fibre recycled cotton). The company also plans to continue increasing the use of recycled materials across all product categories.
Circular experiences
As part of its strategy, Ralph Lauren will offer new circular retail experiences for customers. In 2022 they will enable product collection to support resale and recycling options for their products and enhance their vintage product offerings.
Published 23 November 2021
