YouSaid · the spoken record

Jennifer Hyman

lines on the record: 78
first: 2017-01-09
most recent: 2017-01-09
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“But there is an even bigger segment of people in the market who will never come into a rent the runway store, but they'll utilize the fact that we have inventory for them real time in that market. So the traffic that's coming in is actually very interesting to Neeman Marcus because why do they come in to rent the runway to pick up their order? They're actually coming in because most of those people are using our on-demand event business. They're renting for a holiday party or a wedding in which the stakes are high and they actually want to try on what they've rented in a dressing room in the store, make sure it fits, have the contingency plan there that if it doesn't fit, they can swap for anything else in the store. And it's the perfect customer for Neeman Marcus because that's a woman who's going to an event. She's ready to spend on cosmetics, on shoes, on other things. And we've actually proven over the last two weeks that a huge percentage of the people that are coming”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“You could and we're opening up our own flagship stores around the country as well. We just launched our flagship in New York yesterday, actually. So Neiman Marcus wants you to bring people into the stores. Can you explain, you know, you're saying that you're going to curry them to them? They want them to walk up those. You're on the fifth floor, right? So they want them to walk through the store and see it. That's the goal. So we've found that there are thousands of people that will come into our stores every single week. They'll come in to pick up their order. They'll come in to drop off their order. They'll come for a personal styling appointment.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“You can go and book a personal styling appointment with a stylist at rent the runway and in forty five minutes try on every outfit you need to wear for that entire year. But in that 45 minutes we expect you to come in once a year, maybe twice a year. We've actually built technology that's very similar to what I would call prime now, where you can real-time now in San Francisco see all the inventory that's available in the store. And in one click, choose to have it couriered to you to your office or your home. So for me, a store is kind of like a distribution center that's in the center of a city that provides convenience to my customer. Now why in Neiman Marcus? Well, when you're going to that last minute event anywhere.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“Not getting younger, my customers for the most part actually don't go into physical retail stores and they don't want to. They work. They don't have time. And their precious time they do have. They want to spend it in other ways. So we've actually built a store that's actually based around the concept of not having to necessarily have people come into the store. All right, but they go to the store.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“Well, number one, we have six million customers at rent the runway right now who are on average 29 years old, whereas Neiman Marcus's average age is 51, and that average age. That's a big difference. That's a big difference.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“So you obviously think talking about retail that there are some synergies between your business and big retailers, I think you're in town this week or a new pop-up store or you correct me if it's not pop-up permanent.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“Choices. You know, I'm not about having a whole uniform that every day is you're wearing the same black, you know turtleneck and jeans and you develop that sort of uniform, I actually think that self-expression comes sometimes from what you wear and having the freedom to be able to wear whatever you want for whatever mood you want to wear it, but to not feel frivolous that all of those things that help you self-express have to be things you're committing to forever.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“Well, amongst women who are 40 and under, fifty percent of your spend per year on clothing is going towards fast fashion or off price. It's basically going towards things that you're actually only wearing two or three times. So I think rental in the easiest component is just a substitution for the 50% of your closet that you're only wearing two or three times. Potentially, and rental is offering that at a much lower price. So either you save that money and you might use it on other things in your life like paying for school or food or other things that are important to you, you could also use that money to reinvest in the other side of your closet into things that you might have that last you for 10 years or for 15 years. So it's about kind of rethinking how you build a wardrobe and how you get dressed around smart”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“Not even just the fast fashion rise. Look at traditional retail. Traditional retail clears the floor every three months. Why do they clear the floor? They're telling consumers that trends are changing and you need to buy something new. Well, we've debunked that myth on rent the runway. We have styles on our site that have been on the site for over seven years. Now maybe not the same unit because we've had to buy back into things. But we've proven that A great top is a great top. A great dress is a great dress. What consumers actually care about is something being new to them, not necessarily being new to the market. So this idea that every three months a store should discard everything they have, put it on sale, and get you to come back in and buy something new is highly irrational. The average American is buying sixty four new articles of clothing per year.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“People don't think of clothes that way because we were not, I mean, no one had really built out the logistics to make that possible. In fact, the entire dynamic of the industry is based around getting people to consume more, even though you don't need it.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“Quote unquote, stealing music from Napster in college 25 years ago So we've had the ability to think about music and to consume it differently for a very long time.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“I mean, I have no desire to sell rent the runway. I have a fifty year vision for rent the runway at least to change consumer behavior and actually put the closet in the cloud. And I think that it actually takes a long time to change consumer behavior, to get us from a place where we're buying closets filled with things that we don't use to a world where you're being smarter about how you get dressed. So even taking music as an example, you know, we look at the last seven or eight years of Spotify in the US and their 10 year growth trajectory since they launched. However, I mean, I was”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“Goal is that when every year our logistics get better and better, our cogs reduces so that hopefully we can offer this same value over time at ninety nine dollars a month, which would really open us up to.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so 60% of the customers to Unlimited, which costs $139 a month, And is giving you three items at a time. So women on average are receiving around $40 to fifty thousand dollars worth of apparel per year for sixteen hundred dollars. The woman who's signing up on average has a household income of a hundred K and up. So it is, if you look at 18 to 42 year olds in the US who have that household income, it's about a $15 million person market. So it's certainly not a mass market product at this point in time at $139 a month. But I thought it was extremely important given where we were and are in our trajectory of we've attained profitability this year and we wanted to launch a new product that also was profitable and gross margin positive and you can always reduce prices over time but companies have found it very very difficult to raise prices. So we started at probably the most expensive price we'll ever have and my”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“What I really wanted power is what's happened over the last 80 years in the transportation industry. Uber is dealing with the last five minutes of the ride. And that is what you can potentially call our on-demand business.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“I mean, I think upwards of 80 years, you have planes, you have trains, et cetera. And what's interesting about the transportation market is that you're often dabbling in multiple categories. So the same person who might own a car is still using Uber, is still using a taxi, still might go to Avis on a business trip and rent a car. And maybe they're shifting the distribution with which they consume all of these products, but it's not either or. Same thing in clothing. So we're still in the world of 80 years ago where everything that you own, even though you've had the same clothes forever, everything you've ever had to purchase, you have to own it for the rest of your life. And all that rent the runway has really done is we've opened up the technology and logistics to make it possible to have the customer decide how long she needs an article of clothing for. And so”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“Well, I actually think transportation is an amazing category to think about. So it was eighty years ago that we were given the opportunity to lease a car for the first time. And over 50 years ago, we were given the opportunity via Avis and Hertz to take a business trip and rent a car for a few days. Zip car launched over 20 years ago, and Uber launched seven years ago. Now at the same time, in transportation, you've had taxis that have been around for”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“To an office They have to Feel confident when they go into work, they actually find it. Extremely expensive to dress in a business casual function.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“Have unlimited swaps throughout the But the product disorder. Was not actually additive to anyone's life because it didn't allow them to substitute children.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“So we actually launched our subscription. With something that was cheap for us to do, but customers didn't really like it. It was a subscription to accessories and handbags.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“Around a subscription to fashion. What I knew is that it wouldn't be like Spotify or Netflix, where the cost of content is so low that you're paying $9.99 a month for access to every song that's ever been produced.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“We had launched a product in beta for a year before Remove the shackles of the waitlist and actually launched it to the mass market. I mean, there's I knew that there would be a concept around having a subscription to fashion, just like we have a subscript To music via Spotify or to entertainment via Netflix. But it didn't actually know what the consumer value proposition should be.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“And that infrastructure has now allowed us to open up different ways. For women to rent. So this year alone, we launched a subscription to fashion Called Unlimited, which is about people renting for their everyday lives, and that has The most successful Launch we've ever had, and then actually just two weeks ago we launched a new subscription product, which is about renting an outfit of the month.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“So that was the first business that we launched, and that business gave us the venture capital funding and the team to be able to build out what we really do, which is all of the technology and logistics to power just-in-time reverse logistics of physical goods, meaning that 100% of the dirty clothes that we get back in the morning, we can actually Sort them, repair them, dry, clean them, assemble them, and send them out to new customers that evening. So we have a zero-day turnaround of physical goods.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“Rich people steal more than poor people. So they rent Yeah, so biggest return day of the year is January 2nd because women have been renting the runway for New Year's forever.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“Women have actually been renting the runway illegally for decades. So the rate of Of dresses ranges from between thirty five to seventy five percent in retailers, the more high-end the retailer, the higher the return rate.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“So, when we launch seven years ago, we launched a business that was about renting dresses and accessories and handbags for the twenty eight on average special occasions that women have per year. The reason why we started in that one segment of the $1.7 trillion fashion industry was it was a very easy customer value proposition for people to understand. Women can look at their own closets and think about the events they have in their life, be it a wedding or their sixth bridesmaid dress, and understand that they've bought things, especially dresses that they've only worn once. So we thought if we were introducing a new behavior, which was normalizing this idea of wearing clothes that other people had worn before, which is kind of icky, we needed to do it around something that was really easy to understand. From the industry standpoint, we needed to launch with dresses because it was basically a negative.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT
“So, Run the runway, we rent designer clothes, and we have a belief set that half of the closet over time is going to move into the cloud and a portion of what we wear every single day will be comprised of things that we don't own forever. So all a rental means to me is that you don't need it for the rest of your life. And you can, as the customer decide how long you want to use something for.”
2017-01-09 · Decoder with Nilay Patel · Recode Decode: Jennifer Hyman, CEO, Rent the Runway · IDENTIFIED FROM THE TRANSCRIPT