Abstract

How is it that fashion companies can be following the same trends and putting out similar products, yet all manage to stay afloat? Innovation. The methods used to answer this question included an in-depth analysis of the fashion industry as well as comprehensive research conducted through the understanding and interpretation of scholarly articles, focused on fashion, economic growth, and consumer needs. It is important to examine and understand the disruption within the fashion industry and the rise of the online clothing rental industry to gain a better understanding of what occurred and why from financial, operational, and innovation standpoints. Research indicated that the online clothing rental industry evolved in order to spark a time of innovation, fulfilling consumer needs of luxury goods at affordable prices. It was found that Rent the Runway is spearheading the growth of the industry, offering the most elite and widest product selection. Its innovative efforts such as storefronts in major cities, WeDrop boxes, and voluntary client data formulation, allows the company to recognize and cater to client needs in an effective and efficient manner.