Imagine being able to add new pieces to your wardrobe every month, and then give it back once you’re over it.
This episode is about a startup company that does just that, Onloan is a fashion rental subscription that sends you new pieces of your choice every month, from the cult brands we’re all obsessed with on Instagram. The 2 female founders are on a shared mission to reduce waste, curate brilliant independent designers and reignite a love of clothes without the guilt. After getting featured on the today show early on in the journey the company took off to quickly became one of the UK’s leading fashion rental services, whilst fulfilling on it’s mission to do good and create positive change in consumer shopping behaviour in an attempt to impact the fast fashion crisis that’s clogging up our landfill. This is Tamsin Chislett for Female Startup Club.
How Onloan Works
So, what exactly is Onloan? It’s pretty simple, actually. The women who sign up, affectionately known as “loaners,” choose one of two subscription plans, and each month they receive a curated selection of clothing. At the end of the month, they send the items back, pick out new ones, and the cycle continues. What’s more, Tamsin and her team partner with over 20 amazing contemporary brands, taking care of all the cleaning and mending in-house. Talk about a fashionista’s dream!
Setting the Stage for Success
Starting a business is no easy feat, and Tamsin has some valuable insights for those who might be feeling a bit lost in the early stages. One of the first things she and her team tackled was defining their company values and establishing a founder's agreement—basically, setting the rules of engagement early on. This proactive approach helped them navigate potential conflicts down the line.
For anyone just starting out, Tamsin recommends seeking out resources and support. She swears by Seed Legals, a UK-based service that provides access to standardized legal documents and explanations in plain English. This way, you can focus on building your business without getting bogged down in legal jargon.
Joining an accelerator program also played a significant role in Onloan's journey. Tamsin and her co-founder participated in a program run by Huckle Tree, which offered them valuable insights into areas they weren't familiar with, like analytical marketing. Plus, they appreciated that the program didn’t take any equity, allowing them to maintain control over their vision while gaining essential knowledge.
The Marketing Journey
Interestingly, Onloan didn’t have a traditional launch. Instead, Tamsin reached out to friends, offering them a chance to try stylish outfits in exchange for a small fee. This organic approach helped them secure their first customers through word of mouth.
As the business grew, they tapped into Instagram, where they caught the attention of bloggers passionate about sustainability. Tamsin’s team quickly learned that referrals were their most potent marketing tool, leading to a customer referral scheme that rewards both new and existing customers. It’s all about creating a community around fashion that promotes sharing and sustainability.
Embracing Sustainability
One of the most exciting aspects of Onloan is its commitment to sustainability. With increasing awareness around the environmental impact of fast fashion, Onloan provides a way for women to enjoy the latest styles without the guilt of overconsumption. Customers can try premium pieces without the hefty price tag, all while keeping their wardrobes curated and clutter-free.
As Tamsin points out, the biggest reason people choose rental isn’t just sustainability; it's the opportunity to explore and enjoy a variety of styles without the commitment. This idea resonates especially well with city dwellers, where wardrobe space is often limited.
Navigating Challenges
Of course, every startup faces challenges. While Tamsin acknowledges that securing brand partnerships was easier for Onloan than for some earlier rental services, it’s still a delicate dance. The brands they collaborate with understand the value of reaching new customers through rentals, which ultimately helps drive sales for them as well.
The rental model also raises interesting questions about profitability. Depending on the original price of the garment, the payback period can range from three to six months. Onloan has learned to choose durable fabrics and styles that can withstand multiple rentals, striking a balance between quality and sustainability.
Looking Ahead
As the world adapts to new shopping behaviors, rental services like Onloan are poised for growth. Tamsin envisions a future where women can effortlessly express their style without the burden of excess clothing. The magic lies in creating an experience that emphasizes community, sustainability, and fashion-forward thinking.
So next time you're tempted to buy that dress you'll only wear once, consider joining the Onloan community. It’s not just about fashion; it’s about making smarter, more sustainable choices while still feeling fabulous. After all, isn’t that what being a modern woman is all about?
