Great post! I recently found out that Luxottica was the provider of my frames, lenses, eyeglass retail outlet, AND eye insurance. Hopefully Warby Parker and others will succeed in breaking up the total monopoly Luxottica has in the space. Having bought my last pair of frames at WP, I found the brick and mortar outlet to be a critical part of my purchase decision. I’d be curious to know what their penetration looks like in markets with no retail outlet- seems like they have a nice solution that allows customers to try frames via mail so I would love to know what customer adoption looks like via that channel.
Awesome post. It will be interesting to see how this space plays out as copycat business models enter the space – while there does seem to be a barrier to entry around capital investment, given enough funding it feels like the premium “at home” dining experience is ripe for further disruption.
Nice article, CBR! In response to Saaket’s question on downtime, I think the company is able to capitalize on the fact that a significant percentage of dresses are rented out on weekends, allowing enough time during the week to receive a dress back, dry clean it, and ship it out again. The company does struggle with seasonality in a broader sense though, with enormous utilization happening around New Years and wedding season. As others have pointed out, inventory is clearly this company’s biggest challenge.
On that note, I would be curious to know what you think of RTR’s recent move into everyday clothing. From what I understand, the revenue opportunity is enormous but inventory management will be incredibly difficult to maneuver.