Transactional innovation revolutionises fashion industry; consumer engagement boosted by new scheme; renting can be the answer for your business and consumers
FASHION Businesses can change the way in which they offer their products and services to consumers through the rapidly growing clothing rental industry.
The whole process is called servitisation. Like many other service-based offerings including the delivery of phone contracts and maintenance contracts, this policy is widely being invested in to provide companies with the scope to increase engagement with consumers and boost transactions.
This method of selling to the consumer has been implemented by companies like Frontrow and Wear the Walk in the UK, with it providing an added stimulus to demand on the supply side – helping manufacturers, designers, and retailers.
Increasing demand ensures that investment in all industries utilising servitisation boosts spending, productivity, and profitability for businesses.
Work is minimal and requires zero upfront investment to evolve
The work needed to adapt your business to this exciting means of service delivery requires little disruption and no expenditure, thankfully.
Through asset finance, which can be used to purchase new online interfaces, increase warehouse volume, staff numbers, and actual clothing stock, you can reduce tax liabilities without needing to part with any working capital.
Portman Asset Finance can broker the finance within a day and has successfully overseen the implementation of the purchased assets — soft and hard — for myriad businesses to ensure that suppliers cater for your immediate business goals thanks to the company’s awareness of issues spanning all sectors.
Cash flow will be unaffected and with the possibility to boost this further through invoice finance or other business loans, operations can be optimised because your company facilitates are rapidly growing through this lucrative means of investment.
Servitisation works for all businesses, not just fashion retailers
Mitigating any returns that could hinder profitability or overall productivity, the online rental interface ensures that payments are secured, sustainability is improved and a business can have a new USP to take on established fashion conglomerates like Boohoo, for instance.
Fast fashion is lucrative, as is any other means of ecommerce marketplace that looks to offer products online-only at low prices, but the risk of returns, for example, is a key reason to differentiate.
Through consumers merely renting a product before purchasing or sending back, a permanent flow of finance is available, troubleshooting any returns-related business issues.
Increasing stock volumes, warehouse space and creating new digital interfaces is the financial requirement in this case.
Getting asset finance for your business
Portman has the ability to process business finance solutions swiftly, therefore you can time your launch specifically to optimise cash flow and negate disruption.
Want to guarantee revenue streams and increase sales like Rent the Runway? Choose Portman Asset Finance to help you fulfil your ambitions and secure long-term business stability, crucial to securing future investment.
Head of Marketing at Portman Asset Finance reiterated how important business finance was to the now fashion giant in securing its rapid growth. He said: “Companies should follow the business model used by Rent the Runway.
“They secured funding for $210 million, as a result, revenues have already exceeded $100 million and the company has been valued at $710 million.
“Through finance solutions from Portman, all businesses across fashion and beyond can reap the rewards of adopting servitisation to increase revenues, crucially, without affecting working capital.”
Find out more about what Portman can do to create a more buoyant future for your company on 01604 761 276, and see how easy business asset finance solutions are to come by.