Founders Claire Allison and Seema Gohil created Closet Collective to treat a common problem among women: they have full closets, but 51 percent of the clothes are unworn. Allison and Gohil call their clothing-rental business a combination of Rent the Runway and Airbnb.
Closet Collective allows women to lend their clothing to the company and rent items for themselves. The clothing includes everyday designer pieces that range from $200 to $500. Any style size, or designer is accepted.
One of the business’ unique aspects is the fixed rental cost: customers can either rent three items for $99 or five items for $150.
This company also helps the consumer profit. Allison said that one customer bought 300 new pieces with the money she earned from loaning her clothes and made $130,000.
Allison and Gohil plan to contribute to the resale industry revenue, which is estimated to hit $16 billion this year.
Not only is Closet Collective economically smart, but it will also help introduce consumers to new designers, which will expand their sartorial knowledge and improve their personal style.
“They are engaging with designers they either didn’t know before or could never afford,” Allison said.
According to Gohil, “It’s affordable, but high-end.”