Tropes

R_www.forbes.com_technology 2015 00676.txt

#At SXSW, Retail's Data-Driven Future Is On Display Apart from expanding to sell merchandise online, most traditional retailers have not changed their business approach for decades. But customersexpectations have changed. For Jennifer Hyman, CEO and cofounder of online designer clothing rental company Rent the Runway, this was an opportunity. Now a company valued at $220 million, Rent the Runway is attempting to be to retail what Uber is to taxis: a new slant on an old industry that leverages data and analyticsnd puts power in the hands of its customers. On Friday at SXSW Interactive, Hyman spoke on a panel along with Katrina Lake, founder and CEO of Stitch Fix, about the next-generation retail experience. Both are built businesses on a keen understanding of the female fashion consumer. But Hyman pointed out that unlike the movie or music industries, fashion does not have blockbusters: One style does not work for everyone. The ability to use data to make personalized recommendations to customers is critical. In fact, the first C-level executive Hyman hired was a chief analytical officer because she understood that what the company was creating was data products. e use data to price by demand dress may be higher in the holiday season, she said. ut we also understand that data is a precious asset we can use with our suppliers. It a competitive asset for us to be a partner with our designers and let them know what young women are doing with their brand. But another key aspect of Rent the Runway approach to its customers goes deeper than data connecting with women at a visceral level. e have 5 million customers. On average, theye 30 and make $100, 000. They describe themselves as smart. But a lot of marketing to women is based on a mentality that women don think theye good enough. That ridiculous, Hyman said. ee proud of what we are, and we respond to brands that talk to us in that way. As for the future? She said she hoped to see disruption in the shipping industry so that the costs for online retailers will come down. And she envisions taking customer service to completely new levels, enabled by her company focus on data, analytics, and incredibly efficient logistics. y dream is traveling without suitcases. You check into your room, open the closet, and your wardrobe is all there, she said, to enthusiastic applause

< Back - Next >