Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 9 pages
Data source: Published sources
Share a link:
https://casecent.re/p/165909
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
Apparel Retailer Urban Outfitters, Inc (Urban Outfitters), was launching a new clothing rental business called 'Nuuly' in the US in July 2019. The womenswear service allowed younger fashionistas to select six garments that would cost them USD88 per month. The clothes would come from Urban Outfitters' own stable of brands, outside labels and vintage pieces. With declining foot traffic in stores and millennials preferring sustainable products, the established retailer was foraying into the sharing economy fashion platform. The move had also come as the apparel-rental market was growing at a rapid pace due to the immense popularity of fast fashion and online shopping options. With Urban Outfitters entering into the apparel subscription rental market, it remained to be seen if the company would succeed in tapping consumers looking out for sustainable fashion options without cannibalising its store sales. Would 'Nuuly' become a hit in the popular clothing retail market space and take on its competitors? Would the new rental model for women's apparel enable the company to diversify its revenue streams?
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Time period
The events covered by this case took place in 2019.Geographical setting
Region:
Americas
Country:
United States
Featured company
Urban Outfitters, Inc
Employees:
10000+
Turnover:
USD 3.9 billion (2018)
Type:
Public company
Industry:
Lifestyle retail
About
Abstract
Apparel Retailer Urban Outfitters, Inc (Urban Outfitters), was launching a new clothing rental business called 'Nuuly' in the US in July 2019. The womenswear service allowed younger fashionistas to select six garments that would cost them USD88 per month. The clothes would come from Urban Outfitters' own stable of brands, outside labels and vintage pieces. With declining foot traffic in stores and millennials preferring sustainable products, the established retailer was foraying into the sharing economy fashion platform. The move had also come as the apparel-rental market was growing at a rapid pace due to the immense popularity of fast fashion and online shopping options. With Urban Outfitters entering into the apparel subscription rental market, it remained to be seen if the company would succeed in tapping consumers looking out for sustainable fashion options without cannibalising its store sales. Would 'Nuuly' become a hit in the popular clothing retail market space and take on its competitors? Would the new rental model for women's apparel enable the company to diversify its revenue streams?
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2019.Geographical setting
Region:
Americas
Country:
United States
Featured company
Urban Outfitters, Inc
Employees:
10000+
Turnover:
USD 3.9 billion (2018)
Type:
Public company
Industry:
Lifestyle retail