New Venture Idea (1)

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1 New Venture Idea of a Sustainable Fashion Rental Service Professor- Janice Vilaca Student’s Name- Tejas Wagh (8862184) Course- New Venture Creation

2 Introduction With the rise of fast fashion, consumers have become accustomed to being able to purchase fashionable clothing at a cheap price and disposing of it as soon as it has reached the end of its life cycle. Thus, the following new idea is based on creating sustainable fashion rental service that is inspired by the idea that brands are making strides towards sustainability by reducing the environmental impact of their products, but many still rely on unsustainable production processes and continue to use harmful chemicals in their manufacturing factories. The concept of a sustainable fashion rental service is intended to bridge the gap between these two concepts by allowing consumers to rent trendy clothing for an affordable price while providing designers with a sustainable platform through which they can sell their clothes rather than disposing of them as soon as they go out-of-season.

3 Lean canvas tool Problem Solution Unique value proposition Unfair advantage Customer segments Enormous environmental impact. Renting instead of buying. The rental service can position itself as an attractive and sought-after option in the market. Existing competitors in the market Customers can belong to any demographic, but will be primarily between the ages of 18-35 and college educated. Existing alternatives The use of environmental sustainable raw materials Key metrics The values of sustainability, affordability, fashion exploration, and convenience. High level concept Customization of the rental service Channels The need to use of social media platforms for marketing purposes Early adopters Your Wardrobe Rental and StyleLend (England), Rent The Runway (USA), and Le Tote (USA). Cost structure The sustainable fashion rental service estimates that approximately $20 billion will not go to waste. Revenue Streams The new venture idea will mostly focus on celebrities.

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4 Viability of the new venture idea The viability of sustainable fashion rental service from the consumers perception shows that the clients perceive these products as a viable solution that aligns with their values of sustainability, affordability, fashion exploration, and convenience. Furthermore, the efficacy of its sustainable business model emphasizes that its business model and plan is viable and meets the needs of industry standard (Jin & Shin, 2020). The product range was segmented into three categories: clothing; footwear; and accessories. In addition to the product inventory, clients were able to personalise their outfits by selecting from a range of hairstyles, wigs, and beauty products. The brand strictly adhered to international sizing standards for all clothing items so that it would be easier for clients to decide on which products they would like to rent without the need for trying them on first. By addressing these consumer needs and concerns, the rental service can position itself as an attractive and sought-after option in the market. The rental service is able to differentiate itself by establishing a more personalised experience through customisation and tailoring. Through customisation, the rental service is able to engage with each client personally, which allows the clients to fully understand their needs and wants. Thus, this gives the rental service an edge over traditional retail formats in which customers have traditional expectations of buying products from large brands such as Nike or Adidas. Furthermore, clients are able to rent outfits that are more practical for their lifestyle style, causes them to enjoy a more personalised experience as opposed to traditional retail formats where customers are expected to wear one uniform item each day or week. Inspiration

5 The inspiration for the idea of sustainable fashion rental service got here from gazing the damaging results of fast fashion and the choice to sell a more circular and responsible approach to fashion intake. The idea additionally stems from recognizing the need for cheap access to great, sustainable fashion objects that align with customers' desire for range and style. A sustainable fashion rental service allows customers to access quality, sustainable clothing at a lower cost than purchasing fast fashion items (Perlacia, Duml & Saebi, 2017). It also addresses the demand for variety and style in sustainable fashion. The sustainable fashion rental service aligns with values of health that aims at promoting a more circular and responsible approach to fashion consumption, together with prosperity, which is based on lower costs for customers and expression that allow customers to express style using various outfits. There is a huge potential for the sustainable fashion rental service to disrupt the fast fashion industry and result in more sustainable consumption of fashion. The sustainable fashion rental service has significant potential to expand into new markets, including Australia and New Zealand (Lee, & Huang, 2020). Therefore, the sustainable fashion rental service will be entering the market through partnerships with top luxury retailers, including up-market department stores, high-end boutiques and boutiques for members of the highly recognized individuals’ in the community such as celebrities. With careful planning and attention to detail, this startup will be able to introduce itself to large audiences of consumers, allowing it to potentially enter the market in a sustainable fashion. Problems and solutions of the new venture idea The problem addressed by the sustainable fashion rental service is twofold. Firstly, the fashion enterprise is notorious for its enormous environmental impact, which includes immoderate waste, water usage, and carbon emissions. Secondly, many people battle with the

6 value and practicality of keeping a numerous and fashionable cloth wardrobe. The proposed answer is a style apartment provider that lets in clients to rent top notch, sustainable garments for special activities or regular wear. By renting instead of buying, customers can lessen apparel waste, limit their carbon footprint, and access a huge variety of style items without the want for regular purchases (Jain et al., 2022). In addition, customers can keep money on account that they're only purchasing items they will without a doubt wear. Sustainable fashion rental services currently rarely exist in the United States. There are a few companies that provide similar services internationally, including Your Wardrobe Rental and StyleLend (England), Rent The Runway (USA), and Le Tote (USA). Although these are all rental services, they differ in their business model, price, and selection options. The sustainable fashion rental service will make use of two types of materials in the production and operation of their business. They will purchase used garments at local thrift shops and donate them to the service. The second type of material is the sustainable clothing that the company plans to have manufactured in a socially responsible manner in order to conform to their commitment to sustainability. The company plans on using recycled synthetic fibers, earth-friendly dyes, recycled silk, and organic cotton in their designs. In addition, the use of natural fibers allows them to avoid the use of animals for product manufacture. This business plan is addressing an issue that many are only now becoming aware of due to the ongoing issue of climate change and global warming. As people become more aware, demand for sustainable and eco-friendly products will increase, as this will raise the value of these businesses (Perlacia, Duml & Saebi, 2017). By starting a business that addresses this problem before market demand increases, they are poised to be at the forefront as the green movement gains awareness. Furthermore, by working with other companies in their network to

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7 develop a multi-business network of sustainable ventures, they have increased viability and longevity in the market. Currently less than 1% of clothing sales are rental based (McCoy, Wang & Chi, 2021). However, there is immense potential to increase this number. The sustainable fashion rental service estimates that approximately $20 billion worth of unwanted clothing is available to be recycled each year. This will allow them to source their clothing effectively and cheaply, making it possible for the company to maintain a competitive price point while still maintaining quality. In addition, since sustainable fashion rental services do not currently exist in the United States, the external market would consist only of the United States itself. However, sustainable fashion rental services do exist in Europe and Asia and are extremely successful. Therefore, this suggests that if consumers in America start using these services as well as they have overseas, a sustainable fashion rental service in the U.S. would have an enormous potential market. The Sustainable Fashion Rental Service targets young adults who value an environmentally conscious lifestyle. Customers can belong to any demographic, but will be primarily between the ages of 18-35 and college educated. Differentiation Sustainable fashion rental service differentiates itself through its use of rental as a way to reduce over consumption. It is a web-based service that provides clothing rental with the end goal of reducing the amount of excess clothing in our society. Venture idea seeks to change what fashion means and how it is consumed in today's society. Sustainable fashion rental service aims to make sustainable fashion more accessible by providing fashionable clothes for rent through their website, which sorts clothes based on your style preference or occasion type (Lee, &

8 Huang, 2020). The idea here is that you can rent such outfits for one time occasions, and then return them after you're done with them so they don't end up in landfill or at Goodwill. Thus, the new venture will focus on fabrics and fibers that are more sustainable, and offering more personalized experience. While there is always the standard rental service model, the venture will provide additional products and services such as tailored dresses for events, alterations, storage of designer clothes, and the ability to borrow items for home use on a day-by- day basis (McCoy, Wang & Chi, 2021). The idea is to provide an alternative for consumers who want to save money while being eco-friendly with their fashion styles. We focus on providing practical yet stylish outfits during these challenging economic times while still making more profit than traditional rental outfits.

9 References Jain, R., Jain, K., Behl, A., Pereira, V., Del Giudice, M., & Vrontis, D. (2022). Mainstreaming fashion rental consumption: A systematic and thematic review of literature. Journal of Business Research , 139 , 1525-1539. Jin, B. E., & Shin, D. C. (2020). Changing the game to compete: Innovations in the fashion retail industry from the disruptive business model. Business Horizons , 63 (3), 301-311. Lee, S. H., & Huang, R. (2020). Exploring the motives for online fashion renting: insights from social retailing to sustainability. Sustainability , 12 (18), 7610. McCoy, L., Wang, Y. T., & Chi, T. (2021). Why is collaborative apparel consumption gaining popularity? an empirical study of US gen Z consumers. Sustainability , 13 (15), 8360. Perlacia, A. S., Duml, V., & Saebi, T. (2017). Collaborative Consumption: Live Fashion, Don’t Own It: Developing New Business Models for the Fashion Industry. Beta , 31 (1), 6-24.

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New Venture Idea (1)

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