In this revealing talk, Jennifer Hyman, Co-Founder and CEO of Rent the Runway, recounts her journey from developing an idea at Harvard Business School to becoming one of the few women to successfully complete an IPO in the U.S. markets.
She discusses her experiences, challenges, and the innovative concept of a ‘closet in the cloud’ that has revolutionized the fashion industry.
Birth of a Revolutionary Idea
The idea for Rent the Runway was conceived in 2008 with a vision to democratize access to designer fashion.
The innovative concept of a ‘closet in the cloud’ allowed users the freedom to express themselves without the necessity of owning the clothes, thus revolutionizing the fashion industry.
Challenges and Triumphs in Capital Raising
Raising capital can be a significant challenge, especially for female entrepreneurs.
Despite these challenges, Hyman found the process enjoyable as she loved painting the picture of her disruptive business.
Her experience underscores the importance of resilience and determination in the face of skepticism.
Differentiating in a Competitive Market
Rent the Runway differentiates itself in the market by offering a unique service that allows customers to rotate their wardrobe regularly.
The company sees itself as owning the ‘last mile’ of the fashion industry, similar to how Uber operates in the transportation industry.
Role of Data in Business Operations
More than just a fashion company, Rent the Runway is a massive tech and logistics operation that uses data to understand consumer behavior.
This data-driven approach has been instrumental in the company’s success.
The Power of Influential Leadership
Leadership is not just about authority.
In fact, influential leadership, which positively impacts the climate and culture of an environment, can be more powerful.
This was a lesson learned from Hyman’s early career at Starwood Hotels, where she successfully built a profitable business center without formal authority.
You do not need to have authority to actually be a leader, you can lead via influence. You probably see that in your own sections here at school, that there are people that kind of influence, the climate, and the culture of that environment. That kind of leadership, influential leadership, especially when it’s positive influential leadership, is the most powerful thing you can do. – Jennifer Hyman
Predicting and Leveraging Societal Shifts
The ability to predict societal shifts and trends was instrumental in the success of Rent the Runway.
The concept of a shared economy, which is now popularized by companies like Airbnb and Uber, was the foundation of Rent the Runway, making it a revolutionary idea back in 2008.
Personal Experiences as a Catalyst for Innovation
Innovation often stems from personal experiences, empathy, and understanding societal trends.
Hyman’s upbringing, her experiences with her sister, and her observations of societal shifts all contributed to the creation and success of Rent the Runway.
Persistence, Vision, and Leadership
The journey from being a young entrepreneur to the CEO of a publicly-traded company demands perseverance, vision, and influential leadership.
Despite the challenges and pushbacks, Hyman’s relentless persistence and willingness to adapt her value proposition led to the eventual success of Rent the Runway.
Customer Experience as a Marketing Tool
A strong customer experience can serve as a powerful marketing tool.
Rent the Runway’s focus on creating a service that women loved enough to share with friends led to 80% of their customers coming through word of mouth.
Transforming Consumer Behavior
Rent the Runway managed to shift consumer behavior by offering aspirational brands at affordable prices and marketing the service as a solution for special events.
Making every aspect of the experience feel luxurious was key to overcoming initial resistance to the concept of renting clothes.
Leveraging Earned Media
Creating your own opportunities and leveraging the value of earned media can significantly impact a startup’s success.
Hyman and her co-founder’s efforts to get featured in The New York Times before their business had even launched resulted in significant exposure and early success.
