HONG KONG — Fashion rental web site GlamCorner has raised $3.3 million, aimed at cementing its status as the market leader in the Australian apparel-sharing economy.
The investment of 4.2 million Australian dollars was led by AirTree Ventures, bringing the total amount of capital invested in the business to date to 5.5 million Australian dollars.
The company was founded by husband-and-wife duo Dean and Audrey Jones in 2012. The site stocks more than 3,000 designer dresses from more than 150 labels, averaging about 90 Australian dollars to 130 Australian dollars, and is equipped to offer next-day delivery across the country and three-hour delivery in Sydney.
Over the last year, the business has grown over 500 percent, transacting the retail equivalent of over 20 million Australian dollars, the company said.
“We are renting to 16-year-olds for their Year 10 formal to someone over 60 going to their daughter’s wedding. The problem [of finding an outfit] is quite universal,” Dean Jones said.
“We’re going to stay Australian-focused for the time being because we have a real formula that’s working,” Jones continued, adding the firm would “scale up their inventory base significantly.”
Jones said Zimmermann, Alex Perry, Camilla and Marc, Grace & Blaze, Thurley and Talulah are some of their most in-demand brands rented on the site.
A March Euromonitor report noted that “the sharing economy has disrupted and transformed multiple industries in Australia with millennials more likely to use these services to make the most of their assets. Fashion rental services are expected to further grow in popularity.”
While the site could be viewed as competition to traditional retailers, Jones said that their business helps introduce a new market segment to brands.
“Our customer was never at the price point to buy a high-end designer item,” he said. “She was never going to be their customer, [she was] probably more in the fast-fashion price point. But they get to experience the brand, and the brand gets to build a relationship with that market without any impact on their brand equity. It’s still a decent amount of money to wear it on a single night.”
“We’re a real bridge that makes those things come together,” he added.