VillageLuxe, the Airbnb for high-end fashion
What is it?
VillageLuxe is a web and mobile platform that lets women both lend and rent high-end designer pieces directly from the closets of their neighbours. This C2C rental marketplace is currently invite-only and focused on fashion-conscious women in New York City. The aim of this platform is in order to improve the inefficiencies of women’s closet. Fashion-focused women spend considerable amounts of money on clothing, shoes and accessories, however they underutilize their closets . See it from a business perspective and think about the closet as an asset. Between uses these ‘investments’ end up sitting in closets underutilized. What about the clothes they don’t wear as often?
VillageLuxe is Founded by Harvard grad Julia Gudish Krieger and is not simply a clothing rental service like Rent The Runway. Since VillageLuxe specializes in renting pieces from individual women’s closets, it has a much broader spectrum of high-end fashion. Options range anywhere from Alice + Olivia dresses to a Prada bag. This idea of monetizing underutilized assets has been seen with other business models like RelayRides with cars and Airbnb with homes.
How does it work?
VillageLuxe users engage in a two-sided network with lenders and borrowers, and most users engage on both sides. As a result, each new user actually adds value to both sides of the network, giving the company a unique ability to balance between supply and demand. Because of the good experience, users are using WOM to spread the word in order to maximize the value of the service. For the reason that the more fashion-oriented women who sign up, the more rental options users have, creating a positive network effect.
However, VillageLuxe is maintaining its exclusivity through an invite-only signup process the for the reason that it offers a luxury service. In order to keep high quality users the company has implemented mandatory reviews and social connections.
Is the business model scalable and could it maintain the same level of quality and trust as it expands? Certainly VillageLuxe will be presented with similar questions that Airbnb faced about how much control the company actually has to manage the users’ experience and whether they can prevent people from abusing the service. What impact will VillageLuxe have on future consumer buying patterns?
Behance.net, ( 2015) VillageLuxe website Design [online] Available at: https://www.behance.net/gallery/23201621/VillageLuxe-Website-Design %5B Accessed on: 12 Oct.2015]
Itunes.com, (2014) app villageluxe [online] Available at: https://itunes.apple.com/us/app/villageluxe/id933596321?mt=8 [ Accessed on: 12 Oct.2015]
Stylecaster.com, (2015) Village-luxe [online] Available at: http://stylecaster.com/village-luxe %5B Accessed on: 12 Oct.2015]
The brooklynstylist.com, (2014) your city is your closet [online] Available at: http://thebrooklynstylist.com/your-city-is-your-closet [ Accessed on: 12 Oct.2015]
Wwd.com, (2015) retail-news [ online] Available at: http://wwd.com/retail-news/specialty-stores/villageluxe-julia-krieger-private-closet-10174248/ [ Accessed on: 12 Oct.2015]