Singapore-based clothes rental subscription platform Style Theory believes the future of fashion is renting because of a fundamental shift in consumer mindset.
Sreeram Rajendran, the head of growth at Style Theory, notes consumers of all ages and genders are becoming more aware of the environmental impact of “fast fashion,” which makes trendy clothes more affordable, but results in over 10% of the world’s carbon emissions.
Citing the ThredUp 2019 resale report, Rajendran says in the US alone, the pre-owned or secondhand fashion market is expected to grow faster than fast fashion in terms of total value by 2029.
That is why StyleTheory believes rather than the ability to purchase, acquiring rental access to fashion and luxury brands is the future of fashion.
“Much like the music industry, where consumption patterns moved from owning expensive CDs to subscription services that provide consumers with access to an extensive music catalogue, the fashion industry is going through a similar disruption with consumers shifting their focus from ownership to an access model,” explains Rajendran.
“Style Theory is leading this change in South East Asia, where they are currently focused on Singapore and Indonesia and have been growing faster than 2X every year.”
He adds: “Looking forward, they project even faster growth in their existing markets as they have a larger customer base now, and those customers are referring other people in the market to Style Theory. In addition to this Style Theory plans to grow further by launching in more markets in a phased manner.”
As Style Theory continues on its mission to make fashion more sustainable and accessible, one of its priorities is to continuously educate customers about their services.
However, it realised that each customer is at a different stage of their journey with the Style Theory app and needs to be treated as a unique individual.
To address this, the direct to consumer brand started working with CleverTap, a mobile marketing platform to analyze their customers’ in-app behavior and provide each of them with the content, products, and offerings relevant to their individual behavior and activity.
This allows Style Theory to segment customers based on geography, customer type, subscription status, and more, enabling the platform to run personalised and targeted campaigns that drive higher conversion rates.
Style Theory can also reach customers with a rapidly changing and dynamic product catalog, automatically optimize campaigns based on new product interests and execute rich media campaigns across channels as a visual experience.
Last but not least, Style Theory can gather and analyze deep insights through sequential data and reports based on in-app customer actions performed before and after specific events, allowing a tailored user experience.
“The most important goal for Style Theory is to retain our customers and keep them coming back to the app to renew their subscriptions and purchase products,” explains Rajendran.
“Accomplishing this level of industry-leading conversion and retention revenue requires a real-time view of the customer journey as well as the ability to send the right message to the right user at the right time.”
He continues: “With CleverTap, Style Theory is not only able to gather actionable insights, but also automate user segmentation while orchestrating timely, relevant campaigns across channels, allowing for maximum user engagement, subscriptions, and retention rates.”
When it comes to converting high-intent shoppers to paying subscribers, Anil Menghani, the vice president of sales in Asia Pacific, Japan and China at CleverTap says Style Theory tracks and accurately measure customer actions on their mobile app or website.
This allows real-time analysis of conversion rates and enables effective tracking of specific offerings and campaigns. Style Theory can also can test and optimize user flows and experiences on the fly with CleverTap’s product experience and A/B testing capabilities.
“CleverTap’s analytics provide key insights that allow Style Theory to dramatically improve the customer journey with a real-time view of user flow and drop-off points, among other metrics,” explains Menghani.
“Omnichannel engagement allows Style Theory to orchestrate behavior-based, cross-channel campaigns while leveraging rich media and dynamic content to maximize customer engagement and conversion rates.”
Rajendran adds: “We optimise and automate omnichannel campaigns that cover the entire customer lifecycle through onboarding, engagement, monetization, re-engagement, and more, resulting in higher retention rates, 3x more subscriptions, and increased customer lifetime value (CLTV)”
Like US-based fashion rental subscription platform Rent the Runway, Style Theory has since gone into brick-and-mortar, opening its flagship store at 313@Somerset to allow customers who book a styling session online will receive recommendations from in-house stylists.
They can also rent the pieces on the spot if they choose to subscribe.