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Equity

How to sell clothes online and actually make money

Equity

TechCrunch

Entrepreneurship, Business News, News, Business, Technology

4.2372 Ratings

🗓️ 13 October 2021

⏱️ 22 minutes

🧾️ Download transcript

Summary

This is our Wednesday show, the time of the week when we niche down to a single topic. Today? Fashion. Natasha and Danny and Alex got together to dig into the world of fashion resale and rental. It's no small market, giving birth to both public companies, unicorns, and startups. Most recently, well-known fashion rental player Rent the Runway filed to go public, giving us a window in its own numbers. Those figures led us to a few questions about how best to go about making money from clothes in a retail context. From our chat: Selling vs. Renting vs. Reselling: To start, we wanted to help you group startups into three buckets: those who sell customers to people, those who rent goods to customers, and those who resell pre-owned goods to customers. Rent the Runway's numbers: We had some issues with Rent the Runway's business model given that it appears that the company is simply underpricing its clothing items given its cost structure. How Wall Street will price the company, or whether Rent the Runway is hoping to sell to a larger company came into the conversation. Who else should we have an eye on: To close, Natasha detailed a number of startups including Queenly, Curtsy and Rebag. Oh, and Depop (which recently sold to Etsy $1.6 billion). Startups are tearing up old retail models, which we are here for. We are less here for adjusted EBITDA that reads like magical realism.   Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Hello and welcome back to Equity, Tech Roaches Venture

0:13.7

Venture Capital Focus Podcast, where we unpack the numbers behind the headlines.

0:17.4

My name is Alex, I'm here with the crew.

0:19.5

I have Natasha Moscurena, Natasha.

0:21.3

Hello, how is California?

0:23.0

California is lovely.

0:24.0

It actually feels like fall,

0:25.0

even though we don't have seasons here.

0:26.0

So I'm happy.

0:28.0

You kind of have seasons.

0:29.0

There's the slightly colder bit and the slightly warmer bit,

0:31.0

which happened at random times throughout the year.

0:33.4

Yeah.

0:34.4

Danny, how's New York?

0:36.4

I mean it's fall where I am so I'm presuming the year also getting cold and sad.

0:40.1

It's wonderful.

0:41.2

My home is set for 64 normally, so it is enjoyable because it's now the same

0:46.2

outside as it is inside.

0:47.6

For those of you who don't do your temperature measurements in imperial units, that works out to

0:52.0

somewhere between 7 and 45 degrees

0:54.6

Celsius, I forget which. Anyways, today that the temperature range matters

0:58.8

because we're dealing with a tire which you will change of course based on how warm or

...

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