Full Disclosure: My Fashion Sense is Lacking

For those of us who are not fashion aficionados, fashion rental apps are precisely what they sound like. Imagine I own a $500 pair of pants that I have no intention of wearing again; if you happen to be a fellow human in my size, you could rent them from me, returning them once you’re finished.

It sounds intriguing, but I must admit that this concept extends beyond my comprehension. There are numerous affordable options available at stores like Old Navy and Marshalls, and I believe JCPenney still exists, offering quality clothing at a fraction of the designer price.

As I mentioned, I won’t criticize a group of trendy individuals for their choices; I assume they know what they’re doing. However, I do expect venture capitalists to exhibit better judgment—especially those of you clad in blue dress shirts and expensive khakis. It’s time for the younger generation to voice their opinions.

Funding should not continue for such ventures.

These Concepts Aren't Groundbreaking

These ideas aren’t novel and thus don’t warrant hefty seed funding. The article suggests that a “light bulb moment” inspired this company to shift from a data-driven app to a peer-to-peer fashion rental service—like, “Why haven’t people been borrowing each other's pants?”

Yet, this realization is hardly groundbreaking. The peer-to-peer model has been tried and tested; it’s now viewed as a relic of the gig economy—akin to a blend of two outdated models that simply don’t work economically.

Moreover, there are already countless peer-to-peer fashion rental services available. The article lists several competitors and provides links to even more.

Lack of True Innovation

As I read through the article, I was searching for the unique element that would distinguish this peer-to-peer fashion rental app from its multitude of predecessors. The so-called “secret sauce” turned out to be catering to a lower overall retail value for the rented items.

However, the price point mentioned is precisely where many of these apps operate—affordable enough for numerous individuals to own items yet too pricey for many others to justify ownership. This model makes sense for rental platforms like Turo, which primarily focuses on higher-end vehicles without venturing into the ultra-luxury market.

In essence, this business model is merely a combination of Turo, Shopify, and Poshmark, infused with a bit of social interaction and an intent to incorporate AI, just like countless other startups.

Absence of a Compelling Value Proposition

The overall strategy seems to be fitting a specific niche into existing structures (such as apps, payments, and shipping) and trendy frameworks (like marketplaces and peer-to-peer models), regardless of whether the need for such a product truly exists.

And let me be clear: this isn’t solely about fashion; it could pertain to power tools or any other traditionally masculine or rugged product. Renting power tools, for instance, makes economic sense for both contractors and DIY enthusiasts who wish to avoid investing heavily in expensive equipment.

But what’s the cost of not having those pants? Essentially, zero.

While it may fulfill an aspirational desire, fashion lacks the fundamental “need” that could transform a simple app marketplace into a high-growth enterprise that justifies significant investment.

It could become a modest business, and I appreciate the appeal of small businesses. However, unless there’s proprietary intellectual property that could be marketed to department stores, the venture remains tenuous.

Just Because it Exists Doesn't Mean it Should

Given the frequency of the terms “trend” and “trendy” in the article—after all, it is about fashion—it raises immediate questions about the long-term profitability for vendors operating in this marketplace.

This issue plagues “nice-to-have” two-sided marketplaces, which often fail to sustain vendor profitability, as evidenced by models like Uber and DoorDash. This concern is glaringly apparent.

Yet, funding for such ventures continues unabated. While the drive for innovation encourages looking five to ten years ahead to determine whether a model will evolve into a necessity, I wonder: in what universe does aspirational renting become essential?

I personally do not wish to inhabit that universe.

Ultimately, this isn't just about my lack of fashion sense. It goes beyond fashion or peer-to-peer concepts; it pertains to the venture capitalists and media perpetuating outdated models driven by fleeting trends and immediate consumer feedback. The notion that businesses must cater to customer whims only to cash in before the next shiny idea comes along is troubling.

I may not have invested enough in cryptocurrencies to attend the more exclusive events, nor have I purchased an NFT. I prefer to write my own articles instead of relying on AI tools. If that makes me unfashionable, then so be it; I’ll simply adjust the collar of my Members Only jacket and move on.

Here’s a brief video where I discuss these points, along with some additional insights:

Perfect Day CEO: We're trying to build a company that could exist as a really strong public company.