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A Cash-Strapped Europe's Latest Craze: Rented Clothes
Renting and leasing of consumer products with the intention of testing them out or keeping them after a specific period is nothing new, and has been the basis for viable business models in the US, and around the world, with companies such as Rent-A-Center and Aaron's for decades. However, renting and leasing clothes is something that only a materially cash strapped people would engage in. Such as those of Europe, where the depression has been going on for five years and has manifsted itself in record unemployment month after month, and youth unemployment that in many cases is well over the 50% mark. In this context one has no choice but to live thrifty, even if that means renting, and leasing, second-hand clothing.
Meet Anouk Gillis who is just such a person. As the WSJ reports, Anouk Gillis often sports a pair of organic-cotton jeans she ordered online. But she doesn't actually own them. Rather than buying the pants, which retail for around €100 ($135), Ms. Gillis signed a 12-month lease with their designer, the small Dutch fashion label Mud Jeans. The terms: a €20 deposit and monthly installments of €5. After a year, Ms. Gillis, who is also Dutch, can decide to buy the jeans, return them, or exchange them for a new pair. Ms. Gillis, a 40-year-old receptionist who lives in the small Dutch city of Tilburg, regularly buys secondhand clothes and shoes on the Internet and grows vegetables in a shared garden. For her next trip to Rome, she booked a room on the website Airbnb Inc., an online matchmaker for budget travelers and people with a spare room or other lodging for rent.
The owner of Mud jeans, Bert vsn Son explains the logic: "The idea was to make high-quality jeans available to everybody." He promises to recycle the used jeans into new pairs or sell them secondhand at the end of a lease. Of course, if he continues "flipping" the rented pair out, nobody would be the wiser.
In Europe, using rented clothes may be the start of a big trend for a youth that find itself in an unprecedented financial condition:
The deal shows how companies are trying to reconnect with Europe's cash-strapped consumers, who increasingly rely on renting, sharing or even bartering for products and services ranging from clothing to vacations to lawn mowing. The euro-zone crisis and shallow European recovery has added urgency to those efforts, as high unemployment forces many consumers to carefully control spending.
Companies like clothing retailer Hennes & Mauritz are piling into a market that until lately has been dominated by Internet startups and consumers themselves. One immediate aim: to find more ways to get customers into their stores. But they are also pursuing a longer-term goal.
It goes without saying that the main impetus for the rent/lease business model came as a result of the 2008 financial crisis.
Sharing or renting goods and services isn't a new business model, but it got a major boost from the 2008 financial crisis and the spread of digital technology, which spawned a series of startups focused on sharing, many of them in Silicon Valley. In Europe, consumers are increasingly buying into the idea, as the uncertainty sown by high unemployment and government austerity measures drives them to think about longer-term ways to save money.
In order to preserve some sense of worth, the process has even received a rather noble sounding name: "collaborative consumption." Perhaps that is only fitting for a continent that is on the last innings of its "shared" welfare experiment.
"Everything that has to do with collaborative consumption is absolutely on the rise, and that has to do with people having less money to spend," said Lucia Reisch, a professor of consumer issues at the Copenhagen Business School.
It should perhaps come as no surprise that the future is so bright, if leased, it increasingly looks two-thirds "collaborative"
According to a recent survey from the Observatoire Cetelem, a research arm of BNP Paribas SA's consumer-credit firm, 68% of Europeans surveyed said they would buy secondhand products in the years to come, compared with 58% today, while 53% said they would barter for goods or services, versus 31% which said they do so already.
Consulting firm Frost & Sullivan estimates the number of Europeans sharing cars will climb to 15 million in 2020 from 700,000 in 2011.
Now, consumer-goods companies are getting into the act. In July, in a bid to boost revenue, French retailer Intermarché, part of closely held Groupement des Mousquetaires, started offering leases on household appliances and electronic products worth more than €349. It said it may expand the program to items such as garden furniture and textiles.
It gets better, or worse, depending on one's sense of self-worth: "Since February H&M has been handing out vouchers or discounts in 42 countries in exchange for a bag of used clothing, regardless of the brand. The retailer sells the used clothes to a Swiss-based clothing and shoe recycling company."
Finally, since we are in the New Normal, the supreme irony is that even these new "collaborative" start up ideas are not actually making a profit:
Many of Europe's leasing or sharing experiments are in their early days. Mud Jeans isn't making money yet, according to its CEO and owner. Since July Intermarché has made about 100 leases, mainly for smartphones or washing machines, at the 52 hypermarkets in France that offer the program.
Well there is always tomorrow, when in addition to clothes the business models may expand to include underwear and even food. After all, if doing something, best to do it right...
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If you leave the sweat spots or pee drop stains in there, or get a Monica blotch, do you lose your deposit?
I dunno, but I hear that there is a Bubba model that does not have a working zipper and it is stuck on open. The Hillary model is very cheap. Nobody would want to get into her jeans.
Rent the jeans & they throw in some crabs for free.
AHAHAHAAAAAA!
Leased pants is one of more ridiculous dehumanizing pieces of web startup.
FUCK WEB STARTUPS.
Whole new meaning to Euro-Trash.
Coming to a place near you, soon!
And the store next to that had wigs, stashs, goatees and van dykes of all colors to flavor your night life.
they look good on you...and do you get a free bowl of soup?...
i assume the unwashed female jeans must go for a premium
In Japan, they're the hottest things goin' in retail - bunch of crazed crotch sniffers there...
The Japs are stone freaks. Can I get a witness to that brethren.
I sat next to an ad guy on the BART last week. He was going through a bound volume of New Yorker issues, circa 1961. People dressed then. They advertised luxury right here in the U.S.A. I think that is one reason why Mad Men was so popular.
I can tell you one thing, women are not attracted to your sloppy programmer ass in flood-tide pants and stained t-shirts. Penniless Geek is not in.
As much profit as twitter.
Brilliant. They take they returned jeans, launder, put a tag on, and sell them as trendy "weathered" jeans.
BTW who the f!@# is buying $100 or 100 Euro jeans? Have these people not heard of slickdeals.net?
I can't believe the sh~t people spend their money on. Thousand dollar bags, $400 shoes, expensive cars, and so on.
People in Toronto think it's a bargain to spend $700k on a house. Even if it were the 'right' price, how do these kids afford this?
2014 Toronto Condo Collapse:
http://www.planbeconomics.com/2013/12/toronto-condo-collapse-2014.html
Depends if its owner is still in them. Both options are available For Rent.
Why Buy when you can Rent?
If it flies, floats or...yeeeaah...you know.
I've searched the world over...for my eurotrash girl!
Some people will pay extra for stained clothing, for example, panties esp if worn by Kim Kardashian or similar.
Asinine!
Pay upwards of $60 for a pair of jeans for 1 year and then give them back!
At the end of a year you have nothing to show for your cost and you have had the "priveledge" of caring for said jeans for the year! If ruined pay a further 20 euros! Now you're up to $85 after 1 year, for a pair of ruined jeans?
Please give me the strength to suffer so many fools!
It's cheaper than buying them on a credit card. No interest.
ho-bo's-r-us.eu
if only there was rent-a-brain...but would they have brains enough to want that?
An elderly lady is passing by the butcher store and sees a sign that says "Special. Fresh Brains on Sale" So she goes inside and looks at the three brains. The first was Lawyer Brains for $9.99/lb, and she says; "The Lawyer Brains don't look so cheap to me." To which the butcher replies "Well, they do have a better education than most, so they're better developed."
So she logically asks; "Then why are the Doctor's Brains so expensive at $15.95?" And he says; "Oh, well they come from truly intelligent men, so they're special."
Then she looks at the Bond Trader's brains and asks "Why the fuck are Bond Trader brains $125.95/lb.?" To which he replies, "Because they're scarce. They usually ain't got none."
Why rent when you can buy at Goodwill? Half price Saturdays are the days to shop. Thanks to all the seniors in our area, our stores are full of name brand, barely worn, dead guys clothing. I really like it when I find a nice polo shirt (RL Polo) for $2.50 with the original tags still on it.
the ceo of goodwill is pulling in 2 mil ayr plus...keep shopping there....
Your point is? Why should I care how much he makes? If you can do it better for less, then go for it.
BTW, don't they hire a bunch of handicapped people that may not have a chance to work anywhere else?
lol...I don't know but "my boys" don't touch anything that another mans "boys" have banged around against.
I'm married ;-)
I've bought used pants on ebay before, but only cuz skate jeans are expensive as fuck in the stores.
I hear ya and I see Long John down below...both good reasons.
Its just me and my own personal phobia...I got a whole Howard Hughs thingy goin on...lol...the scariest thing for me is riding public transportation, its like every virus & bacterium known to man inside a closed in tube.
But I've got shirts and jeans at least ten years old, with holes in em that I still wear around doing chores and whatnot, so no one has to worry about catching my funk and I'l use them for rags when I'm done.
Its the least I can do for mankind ;-)
(Yes, I know used clothes are washed & cleaned befoe re-sale..but still...Howard was right!...lol)
There's an army of a couple trillion bacteria that keeps each of us alive. My bacteria, your bacteria, same shit. My ass sweat would annihilate anything extraneous in the pants after a long day of skating anyway. And a fresh wash starts everything anew...
I know that...but see?...you had to go and say "ass sweat"...lol.
You're just legitimizing my neurosis ;-)
And to further your neurosis, I am of the commando tribe. Though going commando is the greatest, the one drawback is piss drops. Underwear is a noble barrier indeed.
Well, seeing as how we're exposing our "family jewels" to each other, it appears we're from the same tribe...lol. I only wear them at the office (for the reason already explained) but old habits are hard to break.
Just glad there isn't a camera in there.
The extended wiggling & shaking might unnerve the professional voyeur ;-)
////////////
Ok...we need to stop.
I tap out...lol.
ass sweat
ball sweat
pubes en crute
AAAAHHHHHHHH!!! STOP IT!
You are inhumane! A monster! I've got real medical problems here!
But my problem is prolly all covered under ObamaCare (sigh), if all my personal information doesn't get hacked by some Nigerian (tension rising) and I can actually make it through the .gov website (where's my blood pressure pills) so I can then be told to call an actual insurance agent to make sure the website...ya know, worked...like Amazon.
AAAAHHHHHHHH!!! STOP IT!
Dammit...another set of problems! ;-)
Ass Sweat has what plants crave. Crotch sweat, too.
Because electrolytes.
Forgetting dick cheese?
A Monica blotch IS the deposit!
FORWARD DRY CLEANERS!
Next Euro fashion trend: Rent A Rubber.
Bit of a stretch, don't you think?
Rent-A-Swag.... is that you??
Get people to pay to give the clothes that worn in trendy fashion look so you can re-sell them at a higher price
"I've got a rash man."
http://www.youtube.com/watch?v=qlhL9Bx124I
Wish I'd thought of it. You get paid by people who walk around in scratchy new jeans, making them worth $250. when you re-sell them to fashionistas in New York and Tokyo.
I used to buy used clothing at thrift stores to wear while working in my small machine shop. After wearing them until they were full of holes from hot chips and grinding sparks hitting them I would use them for cleaning rags. It's become nearly impossible for me to do that. People keep their cloths until they are worn out and the thrift stores sell what little they do get rather quickly. Even when Jimmy Carter was in office we (Machinist’s) never had this problem.
Perhaps Goodwill would work for you. My daughter once asked for a pair of high end jeans and I said no ( well, actually when I saw the price I did say WTF, YOU'VE GOT TO BE KIDDING! I survived in Levi's, you will too). She went to Goodwill and a consignment shop at a weathy part of town and actually got a few designer pairs cheaper than new Levi's. She did have to dig through a lot of crap to find a gem though so it may not be worth the effort for you. She still purchases most of her clothing this way. Funny how kids can be so resourceful when their parents aren't indulgent.
Miffed;-)
liar!! she actually flipped out and tried to commit suicide a few times since you don't love her enough to 2nd mortgage the home for her yearly fashions and her progressive therapists has her jacked on wellibuton & xanax and child services are in a van stalking your home waiting for the 'go time' call to abduct her away and fine and jail you
Haha! We have 2 associates that roughly have daughters as you describe. The common attributes are heavily mortgaged McMansions, indulging their children at every whim since birth, and a tv in every room going 24 hrs a day. One stayed at our house and I had to take her home in the middle of the night. She was freaked out it was so quiet and hadnt ever slept without the Tv on. She now has finally wreaked her cherry red Mercedes convertible her parents gave her as a sweet 16 gift after getting numerous tickets. She can't get through her day unless she smokes marajuana because she's so stressed and she's fucking anything with a pulse. My younger daughter can't understand how anyone can be stressed when they have always gotten any thing they have ever desired. Sad, really.
Miffed;-)
Good God!!!!!!!!!!!
They can't wear $20 Wallmart jeans, they have to RENT $130 jeans. I can see their reasoning, you wouldn't want to put your financed by the phone company $700 I-Phone in the pocket of cheap jeans.
if you wear walmart jeans you look poor, if you rent $130 jeans you are poor. Girls would rather have a poor richman, than a rich poorman.
How do we get Goldman on the line. we neeed to make a market for this - Liens, and tranches and bonds, oh my!!!!
MR166 - my thoughts exactly, but then I thought maybe selling jeans for $20 is not allowed in Europe, it wouldn't be fair to the companies trying to charge $150 (and think of the loss in VAT to the government).
Interesting - here in Mexico I'm seeing a lot of immigrants from Spain (really)--NO opportunities there. Mexico is dangerous, but the major cities are alive.
You are not renting a pair a of jeans, you are expanding credit ( duh, how hard is this).
Unless credit expands, inflation falls below 0 and the rental price of jeans (representing anything) falls.
Why rent today for a future period when in future the rental price for that future is aflling ?
#JustStop buying shit, you don't need it and it only keeps some wanker in a job, if you didn't buy it a wanker would be made redundant.
Make Wankers Redundant, Stop Buying Shit
#MWRSBS
5 Euros a month! I wonder if this could be securitized into a CDO?
Sure, and the FED will monetize them.
Free jeans for all!
Can they be rehypothicated?
I'm waiting for rental food. You get to chew it, even maybe swallow, but you have to spit/puke it back up. Say steak or lobster. Where upon its recovered, sanitize d and resold.
Call it, Feds Fiat Foods.
Maybe even not use real foods like pink slime which is too expensive in these new normal times. Maybe just textured steak, lobster flavored plastic chunks.
With further research they could survive the digestive process and be toilet recoverable.
( just doing my part to keep Amerika numba one! )
What a dumbass I am! No one will rent my precious! Wanna trade some Mud Pants for Metal?
No, pants only. I will not trade you for Mud Pie.
gross me out!!!
WTF? You're going to pay far more renting these jeans then buying second-hand or at discount.
The dumb fucks.
Actually, it is not that dumb. Do the math.
The jeans cost €100 new if you buy them outright.
Under this model, you pay €20 upfront, €5 a month for 12 months (€60), and at the end if you choose to keep them, you pay another €20 for a total of €100 over the course of the year.
Now, given that most people buy jeans and pay with a credit card, they will pay anywhere from 18 to 30% interest. So under the rental model you save €18 to €30 in interest! Brilliant! It is like borrowing the money at zero % interest!
Oh wait, the banks already get that deal from the Fed.
It's dumb: if you can't afford it, don't buy it. Not on a rent-to-own plan, not on credit.
If people would start to live withing their means it would drive down inflated profits (especially in the fashion industry profits are insanely high) so prices would drop.
It's called the market.
All these schemes distort the market.
With or without bugs and do they come in different scents?
Somewhere out there is a homeless man or woman wearing Clinton's used skivies.
You sir, have a very long memory...kudos to you.
For the kiddies:
"...the Clintons had gone so far as to deduct $2 for underwear donated to charities."
http://www.nytimes.com/1994/04/16/us/clinton-taxes-laid-bare-line-by-line.html
You can almost smell the power ;-)
Let me see if I understand this:
REHYPOTHECATION IS THE NEW RAGE......
What's the big deal? I rented a tux for the prom.
Primark sell jeans for £8. What's the fuckin' problem. Asshats.
+1000 for King's X!
Trendy assholes, nothing more, nothing less. In the land of illusion costumes are king.
Speak for yourself... I actually DO have a trendy asshole, recently bleached by Dr. Zizmor ...
Tabitha is that you? Why pay the doctor when you can do it yourself. Anal bleaching for the cost conscious crowd. Maybe there is a business in renting butt wipes...
https://www.youtube.com/watch?v=Nb5AIIvcaL0
greenshoots everywhere I look.
Greenshoots....
Brownshoots is more like it. Brown is quickly becoming the new green in the new normal.
Nothing new. We only rent our bodies, pay for them while we use them and then have to return them.
Yes, by all means call me; I have trader underwear for rent. WTF.
http://vegasxau.blogspot.com
Where can I rent a loincloth? I wanna go biblical.
Renting pants may seem dumb but it is smarter than buying them on a credit card.
Lease a E100 pair of jeans for 20 + (5X12) + 20 = E100
Makes more sense than putting them on a credit card, making the minimum payment for a year, and paying E129 for the same jeans.
"collaborative consumption" = existing consumption to be divided by 2 or more? Excess productive capacity?
People will need to move back to making/repairing their own clothing - no more of this buy new fancy stuff. It is interesting one of the example people does grow her own food - another step that people will need to take, move back towards self-sufficiency - not necessarily "prepper"-style, but enough to get by.
They are called "P2P Marketplaces."
I have used underwear for rent-to-own. PM me.
if you like your pants...........you can keep your pants
"The idea was to make high-quality jeans available to everybody".. seriously, how "high quality" can jeans be?
This is how stupid people are... instead of living withing their means they keep living a dream...
If you rent "designer jeans" you must be one of the stupidest people on the face of the earth.
yeah it's me and i'm here to repo your jeans....... see, a new job created for the unemployed youth...
It's not the "rent"; it's part of the "sharing economy".
What a fucking joke.