Is Luxury Clothing To Rent A Long-Term Business Model? Tweet

Recent data from the US Commerce Department shows wages and salaries increased by 0.3 percent in the month of August. However economists surveyed by Bloomberg reckon the jobless rate will rise to 9.6%.

So, whilst the U.S economy experiences a slower then expected recovery, everyone is still looking for that “must have” bargain.

I’m no fashion expert, but the business model  of “Wear Today, Gone Tomorrow” fascinates me.

I found this whilst browsing through Entrepreneur.com.

What if I were to tell you that you could now rent designer clothing at 90-95% off the retail price.

This is something that women who have to have the latest designer wear will love.

The downside being that you don’t own it forever. The rental period for each garment is only 7 days.

However, considering the typical fashion trend only lasts at most a year, it’s a small sacrifice. It would certainly be great to know you are paying so little for it.

On the other hand I personally wonder just how much growth this company and others like it will have as the economy maintains a slow and steady revival.

If we compare the difference between post-recession and pre-recession the U.S alone was spending $525 billion on luxury goods during 2004.

But now, during 2010 more luxury goods brands are moving onto China where the opportunities are looking far more lucrative then the U.S.

So, what do you reckon? Designer clothing which you can rent, is this a great business model to operate in?

Will we all go back to spending more on luxury items such as clothing, jewellery and watches then we did during the recession?

Let me know your thoughts in the comments below. I’m sure you’ll be able to teach me a lot about the fashion industry on the whole.

By Josh Chandler, @joshchandlerva

In related news, did you check out Sarah’s video for Pop17 about New York Fashion Week 2010?

Source of Image: http://www.flickr.com/photos/artcomments/379713604/