Nov 23, 2009 4:03 pm US/Pacific
Recession Fashionistas Rent Designer Dresses
RentTheRunway.com Launches With Cheap Designer Rags
SAN FRANCISCO (CBS 5) ―
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A girl tries on a prom dress.
AP
A new website lets fashionistas dress like a celebrity for half the cost. But, like Cinderella, you've got to return it right after the big night.
Designer dresses cost hundreds to thousands of dollars, so most just dream of looking like a celebrity. But Liz Fanlo just ordered several designer dresses, from designers like Herve Leger and Christian Siriano for a fraction of the cost by sifting through the cyber dress racks on RentTheRunway.com.
Dresses rent for about 10% of their retail value - $50 to $200 for a 4-day loan.
"It gives you a chance to take chances on something you might not normally buy," said Fanlo.
And it gives me and intern Jana Sintschnig a chance to wear high end designer dresses for the first time. From trendy to timeless, there are close to 200 styles to try on - virtually.
Jana finds a Tracy Reese sequined mini for me and a Badgley Mischka for her. We pick our size, a free backup size, and then hit a snag. Jana's dress is so popular the online calendar shows it's not available for months.
Founders Jennifer Hyman and Jennifer Carter Fleiss say when that happens a free online fashion advisor can help pick an alternative.
For now, you won't find Dior or Armani. Some designers were skeptical at first, but so far 40 have signed up.
"They want to access this whole generation of customers who crave their brands now and window shop but don't have money to pay out for that $2,000 dress," Hyman said.
Carter Fleiss said consumers are more exposed to Hollywood fashions through the internet and celebrity magazines. In this economy, they are more used to borrowing and wearing used clothing. The company is able to acquire discounted inventory through direct partnerships with the designers.
It's too early to tell if users will be delicate enough with the dresses to stretch enough rentals and cover the costs. They realize there are risks involved. No woman wants to rent a dress and find out it won't work just hours before an event.
They built in safeguards like the free 2nd size and a $25 offer for a backup style.
Once the dresses arrive, customers have them for a 4-day window. Then, they get stuffed back into pre-paid padded envelopes and dropped off at the nearest post office. The rental includes $5 damage insurance and shipping fees. The customer is liable for the full cost of the dress if she wrecks it or steals it.
There are other websites that offer designer dresses and accessories. Weartodaygonetomorrow.com also offers designer dresses for about 10-percent the retail cost. It is also a free service based out of New York.
RentTheRunway.com just launched in November, but already has 80-thousand registered users. So, there's a waitlist. It can take a few days to gain access. But, if you can't wait, Consumerwatch provided a link for CBS viewers which will give instant access.
Liz Fanlo receives her first dress a day before Christmas Eve. Her advice as an experienced fashionista is to always have a backup.
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
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