Blockbuster Biz: Rent the Runway, the "Netflix for Fashion"

By Jane Sung
October 12, 2011

Even the most devoted clotheshorse will confess to having a “closet full of clothes but nothing to wear” moment. In 2009, Jennifer Hyman, along with her good friend and Harvard Business School classmate Jennifer Fleiss, helped us get one step closer to solving this sartorial dilemma with the launch of Rent the Runway. Hailed as the “Netflix for fashion,” Rent the Runway is an online fashion community that allows women to rent dresses and accessories from a wide range of notable designers at a fraction of the retail price. The current designer list is almost 150-long and includes names like Alice + Olivia, Nina Ricci and Z Spoke by Zac Posen. With approximately 1.2 million current members, the company gains over 20,000 more every week.

As Chief Executive Officer of the company, Hyman is responsible for all areas of business, including technology, fashion, sales, marketing, operations, customer service, and team management. Named as one of Inc. Magazine’s “Top 30 Under 30” for her entrepreneurial success, Hyman might also be likened to a modern-day fashion fairy godmother, granting designer dress wishes for all the Cinderellas out there who couldn’t normally afford to wear Proenza Schouler or Prabal Gurung to the ball.

Jennifer took a break from running around town for New York Fashion Week to chat with us about fall trends, her favorite NYC haunts, her greatest eBay find.

The Inside Source: What is your professional background? How did you and Jennifer Fleiss come up with the Rent the Runway idea?

Jennifer Hyman: Prior to Rent the Runway, I was the Director of Business Development at IMG, where I focused on the creation of new media businesses for IMG’s Fashion Division. I also ran an online advertising sales team at WeddingChannel.com and was an in-house entrepreneur at Starwood Hotels, creating Starwood’s first wedding business.
The concept for Rent the Runway originally started when I was home during Thanksgiving break and my sister had a “closet full of clothes but nothing to wear moment” and I thought, “there needs to be a solution for this.” Jennifer Fleiss, my co-founder and President of Rent the Runway, and I created this company so that women everywhere can have access to designer brands that otherwise would have been unattainable. We aspired to make high-end fashions as accessible as renting a movie from Netflix and let women know that they truly can have it all.

The Inside Source: What are each of your roles at the company?

Jennifer Hyman: As CEO, I oversee all areas of the business, whereas Jenny primarily focuses on operations and the execution side of the business in addition to finance. We’re lucky to have very complementary skill sets.

The Inside Source: What is your favorite part of what you do?

Jennifer Hyman: I have to say that even with the warehouse full of my favorite dresses and accessories, managing my incredible, huggable staff is what I love most. I learn from them every day and seeing them share the passion both Jenny and I have for Rent the Runway is incomparable.

The Inside Source: You started with just dresses and now you carry accessories and even sell intimates and beauty products. Any upcoming projects that you're excited about?

Jennifer Hyman: We want to continue delivering the head-to-toe experience for women through Rent the Runway and will certainly be expanding in various areas to foster a one-stop-shop for all of life’s special occasions. Nothing is off limits at this point!

The Rent the Runway homepage

The Inside Source: How do you convince new designers to come on board?

Jennifer Hyman: Designers view Rent the Runway as an opportunity to increase their sales and an introduction to a new customer base. Additionally, since women are renting for the most special occasions in their lives—a wedding rehearsal, honeymoon, prom—they are developing an emotional attachment to that designer brand. Once a customer wears that amazing Narciso Rodriquez dress to her wedding rehearsal or another special occasion in her life, an emotional tie is made with that dress and we see a lot of designer dress purchases resulting from that experience after renting.

The Inside Source: Which Fashion Week shows are you especially paying attention to?

Jennifer Hyman: It is my favorite time of year, and I will be attending as many shows as I can, including Rebecca Taylor, Narciso Rodriquez, Carlos Miele, Vera Wang, Bibhu Mohapatra, Anna Sui, Lela Rose, Cynthia Rowley, Nanette Lepore and several others.

The Inside Source: Fashion week just wrapped. How do Fashion Week trends determine what brands and styles are featured on the site?

Jennifer Hyman: Our buyers attend all of the shows during Fashion Week and are buying the most editorial, trendy, statement dresses. Rent the Runway is a place where women can experiment with the latest trends, so that is what we look to bring them each season.

And while trends definitely have an impact on what we buy each season, we also look to our customers to see what’s resonating with them. Each Fashion Week, we launch a “Style Council” on our Rent the Runway Facebook page where women can vote on the styles they want our buyers to purchase. It’s a great way to engage our customers for immediate feedback.

The Inside Source: What are some of the trends you've seen for fall?

Jennifer Hyman: Lots of pink and reds, beautiful jade green hues, color blocking, lace, graphic stripes, peplum silhouettes, a touch of lace, bright pants, and polka-dots.

The Inside Source: What are some of your favorite items from Rent the Runway for fall?

Jennifer Hyman: The fall line-up has so many on-trend and stunning styles but if I had to choose three dresses and some accessories they would be:

    •    The Roksanda Ilincic Draped Gown: a rust colored, long silk gown that is perfect for a black tie affair
    •    Proenza Schouler’s Grosgrain Stripe Dress: a simple, chic dress for work or dinner.
    •    The Prabal Gurung Modern Madame Dress: Red, feminine and totally stylish.
    •    Coralia Leets Sapphire Druzy Earrings: a perfect pop of color
    •    CC Skye silver winged pendant necklace: I imagine wearing this with a bomber jacket, simple silk tank and dark jeans

Rent the Runway

Jennifer Hyman's favorite styles for fall: dresses by Prabal Gurung, Proenza Schouler and Roksanda Ilincic, all available on Rent the Runway

CC Skye Silver Pendant Wing Necklace and Coralia Leets Sapphire Druzy Earrings, both available on Rent the Runway

The Inside Source: What's your own personal style like? Any favorite designers?

Jennifer Hyman: I love experimenting with fashion. Strut your stuff and if you dream it, wear it (with confidence!). I love taking risks with new designers, bold colors and statement accessories, even if I fail. Most frequently, I am drawn to more sophisticated, feminine styles or I'll channel the large part of me that wishes I was in a rock band and whip out my leather leggings. Matthew Williamson, Haute Hippie, Proenza Schouler and Narciso Rodriquez always do a girl right.

The Inside Source: Do you collect anything?

Jennifer Hyman: I collect tacky magnets from every place I’ve traveled to. My refrigerator is a daily reminder of some of my favorite jetsetter memories. My newest magnet is from Ibiza.

left: Jennifer Hyman's "tacky magnet" collection

The Inside Source: Do you have any hobbies?

Jennifer Hyman: I love to sing, shake my booty, ski and I’m obsessed with anything pop-culture. I think I would kill it on pop-culture Jeopardy!

The Inside Source: Are you obsessed with any particular gadgets?

Jennifer Hyman: I don’t move without my iPhone4. Apple is truly the best!

The Inside Source: What’s your greatest eBay find?

Jennifer Hyman: I used to host a huge Halloween party every year with two of my closest friends, and one year we decided to dress up as Madonna through the ages. I managed to find the very best “like a virgin” Madonna outfit on eBay. It was incredible to me how niche I could go on eBay and still find hundreds of options.

Here’s what Hyman is currently shopping for on eBay:

Roll over items for details

New Roxy Shazam 170 Freeride Powder Skis

(buy it now price, $169.99)

New Loeffler Randall Matilde Flat Boots

(buy it now price, $499.99)

Brian Atwood Dante Fishnet Pumps

Crisca Black Leather Shorts

New Color Rabbit Fur Coat

(buy it now price, $240)

Contemporary Abstract Painting

1. New Roxy Shazam 170 Freeride Powder Skis: "My first pair of skis (hopefully in hot pink!)."

2. New Loeffler Randall Matilde Flat Boots: "A great new pair of flat boots."

3. Brian Atwood Dante Fishnet Pumps: "Brian Atwood shoes."

4. Crisca Black Leather Shorts: "Leather shorts (I love Theory’s)."

5. New Color Rabbit Fur Coat: "Colored fur... because it’s trendy and why not?"

6. Contemporary Abstract Painting: "Real art—I’m sick of framed prints and want to invest in pieces I can look at every day and fall in love with all over again."

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