SX IDM Thesis

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In-Person Rental Store Design

Making Circular Fashion A Reality

Y O U R F R I E N D ’ S C L O S E T

Sophie Xu IDM Thesis 2024

Sustainability is in fashion.

Fashion companies are rampant with sustainability initiatives and marketing campaigns. However, we see this is set up to fail with poor textile waste management systems and a fashion industry full of unethical practices, greenwashing and purposefully declining quality and rising prices.

I see the word sustainable everywhere. It goes over my head… I’m skeptical and assume [the truth is complicated].
Quote

from a software developer on purchasing clothing

It’s difficult for consumers to attach meaning and confidence to the word sustainability. It’s hard to discern the truth without extensive research. Good on You puts it well: "When the brands that are responsible for the majority of fashion’s overproduction, environmental impacts, and worker exploitation claim to be sustainable, the term begins to lose its meaning. The current reality is that no brand or choice is fully sustainable.”

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We turn a blind eye.

Consumers are forced to either be confronted with the overwhelmingly negative environmental impact of their clothes or turn a blind eye to the situation. Confronting their environmental impact is extremely stressful for the average consumer and leads many to choose otherwise. Even for those that take active steps to reduce their impact on the environment, it takes immense and creates immense pressure and is difficult to do so consistently.

Fast fashion is cheap and convenient.

I know H&M is bad, but it just makes my life easier… “

- A young male professional discusses his regret over relying on fast fashion out of convenience

It’s simply easier to buy and then toss. During ethnographic research, multiple participants, whether environmentally conscious or not, expressed that they know that their purchasing habits “aren’t the best,” but “feel anxious looking at their closet” or don’t have the time to think

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Your Friend’s Closet

Mission Statement:

"To take responsibility while having fun with what we wear."

What: At Your Friend’s Closet, we offer affordable rental clothing for everyday wear.

Why: Owning a closet is burdensome, including the effort to clean and maintain clothing, the pressure to get something new, the mental difficulty to remember to wear old items, the guilt of buying but not wearing, the choice of what to wear when things are disorganized, and the responsibility of properly repurposing or getting rid of items.

How: We provide everyone the option to offload some of the responsibility of owning clothing to be able to fully have fun with fashion. We help everyone afford to look good—monetarily, mentally and environmentally.

BRAND STRATEGY 3

Avoiding feeding into higher consumption patterns.

Some platforms that allow shoppers to have greater product selections at a lower price or greater convenience can induce higher consumption patterns (Hawlitschek, 2018).

Stores focusing on designer items may artificially increase consumers demand by making luxury good accessible to a wider audience. Thrifting may increase the amount of wasted articles of clothing by allowing consumers to take home more items than they could previously afford.

We see on social media a tendency for individuals to have massive “hauls,” buying lots of cheap clothing, followed by massive “closet cleanouts,” disposing of more clothing soon after. In addition to fast fashion hauls, we also see a growth in hauls from thrift shopping.

I used to love thrifting and would buy so much… but I've learned to [treat it like any other store] since I don’t wear the clothes I thrift that much either.
Female student speaks on her clothing purchasing habits “

A rental model for everyday wear may help to reduce these effects as it’s not artificially increasing demand for luxury goods or contributing significantly to the amount of clothing one owns.

What this means for business: While it’s nice to offer the ability to purchase clothing one likes, it would be more responsible to limit the amount of clothing customers can directly purchase. To keep things simple and ensure there is enough revenue, this wouldn't be done initially, but would be added later when the business is more profitable.

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$88/monthfor $99-149/month

$49+for1

$120-600

$200-3000

5 Nuuly
Gwynnie
Category Price
RenttheRunway
Bee
Virtual
Rentals WeddingDressRentals DesignerClothingRentals FormalWearRentals
Goodwill BuffaloExchange SalvationArmy LocalStores $1-30
Examples COMPETITIVE ANALYSIS
$30-400 In-Person Rentals
Thrifting

for6items for8items item

Strengths:filterandsortthroughlargercatalogs faster,moreoptionsforsizes/styles,lesstimein store,digitalclosets

Weaknesses:affordability,shipping,fitissues, havingtoplanorderingaheadforevents, profitabilityissues

$120-600

$200-3000

$30-400

Strengths:wearpiecesyoumaynototherwise afford,goodforonetimeevents,in-person servicesandtry-on

Weaknesses:riskofdamage,itemsmayhave sentimentalvalue(wedding,prom)

Strengths:cheaper,thesatisfactionofa“good find,”lastslonger,accessible,owntheclothing

Weaknesses:sometimesheavilyusedordirty, takeslongtofinditems,sometimesremains unworn,risingprices

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Assessment
$1-30

ARCHETYPES

FASHION BEGINNERS

Hopes to explore new styles of clothing; hasn’t tried out much yet (eg. a teenage girl getting into Sephora)

Price

Quality

Sustainability

Fashion

What can we offer them?

Appeal: the option to be more adventurous and exploratory; lower barrier to entry

We Need to:

● Carrying a wide variety of styles

● Have cute clothing

● Be approachable and beginner-friendly

VALUE-FOCUSED CONSUMERS

Cares about getting the most value out of their clothing purchases (eg. a Southeast Asian immigrant mother)

Price

Quality

Sustainability

Fashion

FASHION ENTHUSIASTS

Enjoys fashion and hopes to be sustainable (eg. a college student that likes Reformation)

Price

Quality

Sustainability

Fashion

Appeal: the ability to cheaply and sustainably clothe themselves and any family members

We Need to Be:

● Low cost, make sense financially

● High quality, last a long time

● Have good return and damages policies

Appeal: the opportunity to have a wider range of clothing options without being wasteful

We Need to:

● Have unique pieces

● Make how we are sustainable known

● Update inventory

NON-CONSCIOUS CONSUMERS

Enjoys purchasing new clothing, influenced by social media (eg. a millennial that shops on Shein)

Price

Quality

Sustainability

Fashion

Appeal: competitive styles and pricing

We Need to:

● Present second-hand clothing in a trendy way

● Be low cost

● Make ourselves known, have good marketing and branding

*Examples are stereotypes to help illustrate the archetype and not assumed to be true of the whole population

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TARGET

AUDIENCE

Primary and secondary research led to the creation of 4 archetypes to describe different types of consumers the business could appeal to and their respective motivations. Acknowledging and understanding these motivational differences is important for identifying the appeal and value proposition of the business to different audiences. This dictates the factors to consider when marketing to and meeting the needs of each.

However, the target audience was identified as a category that spans across these archetypes:

FASHION ADVENTURERS

Anyone that hopes to try out more clothing styles and have more variety in their outfits but is limited or chooses to have a smaller wardrobe

● May feel stressed by the price, environmental impact, storage issues or other problems that come with owning a large amount of clothing

● Varies in their level of experience with fashion and styling

Value Proposition: We provide the option to be more exploratory with clothing and make use of a wider range of clothing options without having to worry about environmental impact or having to break the bank.

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MARKETING

The archetype of Fashion Adventures means that the focus in marketing therefore isn’t sustainability, but instead, this aspect of exploration and greater choice. This is works since sustainability generally doesn’t affect the average consumer’s decision-making (Adamkiewicz et al., 2022). However, the sustainability of the business model will still be conveyed and education on responsible consumption will be provided.

Brand Personality

Reliable

Exploratory Approachable

Responsible CommunityOriented

Due to the brand strategy, target audience and unique value proposition, Your Friend's Closet has a distinct brand personality (described above). The store aims to be a minimal yet inviting environment with both a laid-back and energetic vibe. These characteristics inform the visual identity and the in-person experience of the business.

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Appealing to Fashion Adventurers.

Styling Guides

There are numerous ways to appeal to the target audience of Fashion Adventurers. One option is to offer styling inspiration and suggestions to style one item in multiple outfits or aesthetics. This can be done digitally and/or in-person. The simplest way is with images and signage, but as the store grows, this can be further developed. There could be stylists available in-person or more online sharing of users styling the item. Personalized recommendations can be made based on past purchases, indicated interests and items the customer already owns.

Group Try-Ons

Customers can have a unique shopping experience where friends or family members can try on clothes and have a mini fashion show together. Your Friend’s Closet offers a section with multiple fitting rooms that are curtained off for privacy and designed to be modular, reducing costs while maximizing flexibility. Groups can enjoy trying on outfits and then emerge to showcase their selections to each other, creating a fun and engaging atmosphere akin to a mini fashion show. This option is perfect for friends or family looking to shop together and enjoy quality time or help each other make decisions.

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11 ADVERTISING
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VISUAL IDENTITY

Heading Example

Subheading Example

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aenean scelerisque, est aliquet lacinia finibus, leo justo egestas nibh, eget pulvinar nisl lacus sit amet nunc. Maecenas consequat leo at blandit porttitor. Aenean eu nisl id dolor aliquam suscipit. Cras efficitur dolor felis, ut efficitur leo ornare ac. Donec sagittis metus a libero aliquam, a congue ante faucibus. Sed posuere lacus a justo sagittis tincidunt. Etiam tempor iaculis neque, et dictum lorem elementum id. Nullam bibendum nisi et massa placerat mollis.

Headings

Montserrat

Body Text

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Proxima Nova

COLOR SCHEME

Text Colors

Black

CMYK: C0 M0 Y0 K100

RGB: R0 G0 B0

HEX: #000000

Primary Colors

Dark Gray

CMYK: C68 M61 Y60 K47

RGB: R64 G64 B64

HEX: #404040

Neutral Colors

Beige

CMYK: C0 M12 Y25 K11

RGB: R226 G196 B162

HEX: #E2C4A2

Secondary Colors

Off-White

CMYK: C0 M0 Y0 K7

RGB: R238 G238 B238

HEX: #EEEEEE

Gray

CMYK: C5 M0 Y0 K18

RGB: R198 G208 B207

HEX: #C6D0CF

Coral

CMYK: C0 M18 Y22 K11

RGB: R226 G179 B171

HEX: #E2B3AB

Navy Blue

CMYK: C18 M7 Y0 K62

RGB: R50 G77 B96

HEX: #324D60

Light Green

CMYK: C8 M0 Y11 K31

RGB: R157 G177 B148

HEX: #9DB194

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MEMBERSHIP OVERVIEW

All Members Can

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repairs wear clothing store

*As a member, you may hold onto items as long as you want. You must return purchase all items in your possession before cancelling.your membership.

How long can I keep the clothing I rent?

As long as you want! There are no return dates, but you will be charged as long as you keep the item, and all items must be accounted for (returned, reported lost or purchased) when cancelling your subscription.

Do I need a subscription? Can I rent one item or buy an item I like?

We’re so glad you like our clothing! The subscription service helps us reduce the environmental impact of your clothes (read more here). But if you are hesitant, you can pay for items individually as well or you can have your first month free, if you commit to paying for the second month. You can also straight up purchase an item you like. Clothing will be labeled with this rent per item and purchase price. We want to make this work for you financially.

What if I damage an item?

Don’t worry, there are no damage fees. We'll do our best to clean or repair it, but please try to take care of your clothes. Abuse of this system will be monitored, and accounts with high rates of damages may be banned.

What if I lose an item?

You will have to pay market price for the item. We recommend reporting an item as early as possible, so you don’t accidentally pay for it for longer than necessary.

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FAQs

FEATURES

Reliable

Temporary Alterations

Allow free temporary alterations for members, generally for sizing down

Exploratory

Wear Out of Store

Allow members to wear clothing directly out of the store

Use the method of counting items they bring into a fitting room to potentially reduce issues

Approachable

Gender-Fluid Design

Not labelling clothing as women’s or men’s

Custom sizing

Responsible

Buy-Back Policy

Offer to buy back items (at reduced rate) if customer changes their mind (lifelong guarantee unless damaged beyond repair)

To be implemented later on when generating more revenue

Communityoriented

Group Try-Ons

A group can take over a section of multiple try-on rooms and come out and show each other what they’re wearing, perfect for friends or family

Curtained off instead of walled off to reduce costs and be flexible

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SIZE CHART FOR TOPS

General Sizing

Non-Gendered Sizing:

Sizing will be gender neutral and not labeled as women’s, men’s, or plus sized. Men’s clothing are typically larger, proportionally longer and fitted differently. However, you can need longer or shorter clothing regardless of gender and size, and you may want a different type of fit regardless of gender and size.

This sizing chart is drawn up for tops where a Small is equal to a standard Women’s US 4 while a Medium is a standard Men’s Small. A length scale is added to accommodate for differences in proportions. Women and men alike complain about not finding clothing that is long enough or short enough for them in stores. A better developed scale for clothing length or human height would help address this need.

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XS S M L XL XXL XXXL Chest 29-31 32-34 35-38 39-42 43-46 47-49 50-52 Waist 23-25 26-28 29-32 33-36 37-40 41-43 44-47 Hip 30-32 34-35 36-39 40-43 44-46 48-51 52-54
Petite Short Regular Long Tall Length Slim Classic Relaxed Tags for Type of Fit Straight Regular Curvy

SERVICE DESIGN

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General Aesthetic

Minimal, chic, clean, cozy

Furniture and Decoration

Partnering with a second-hand furniture retailer to furnish the store could reduce startup costs. Making information on the furniture and the retailer visible to customers can solidify a partnership and communicate the brand’s dedication to its goal. Racks and furniture should ideally be movable to be able to support the rotation of different aesthetics and seasonal changes in layout.

Fixtures and Materials

Ideally the store would include warm and energy-efficient lighting with some biophilic design. There would likely be less fixtures and furniture initially to lower start up costs and more added later.

Materials could include reclaimed wood for shelving and fixtures, natural stone for countertops and recycled glass for lighting, but the primary focus would still be on second-hand items and reducing waste over sustainable materials.

INTERIOR 21
Image Examples (AI-Generated)

CLOTHING AND LAYOUT

The store is organized by different aesthetics with racks grouped by different types of aesthetics. Shoes and accessories are towards the outside while tops and bottoms go towards the inside. The aesthetics change or are reorganized every two months.

The same item may be placed in different aesthetics. This will be managed by tags in the internal cataloging system. Decor and the store itself is more plain to help streamline and pull back the different aesthetics. One section is reserved for a spotlight, highlighting a new style every two weeks, this would be styling in a trendy way with existing items in the store.

Sample Clothing

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LIFE CYCLE & IMPACT

Average Closet of Women in the US

160 pieces of clothing at a given time (conservative estimate)

10% of wardrobe is utilized on a day-to-day-basis

32 clothing items purchased per year

“Try and Toss” Items

7-10 wears per item before disposal

60% of clothing are thrown out in less than a year

Wardrobe “Classics”

120 wears per item before disposal

Items are kept for 5.4 years but only actively worn for a period of 4 years

Intended Impact of Your Friend’s Closet

Reduce the number of clothing items in a wardrobe and new additions per year

Increase percent of wardrobe utilized on a day-to-day-basis

Increase average number of wears per item before disposal

While clothing may deteriorate and fall into disrepair faster, the model may still maintain or increase the average lifespan of clothing since so many clothing items are thrown out early on. The store aims to stock more unique pieces for sharing and exploration while the average customer holds onto more wardrobe essentials or basics to pair with.

*Sources cited at the end

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Purchase End of Life
85% send to landfill Usage Purchase Customer 1 Disrepair Customer 2 Repeat Borrower Repurposed
style, offer styling suggestions
Potentially out of

“END” OF LIFE

Your Friend’s Closet is committed to being personally responsible for all clothing that goes through the store and not relying on directly donating all items in disrepair.

The goal is to keep clothing going to the landfill under 1%.

The first step is always proper care, followed by mending and repair when applicable. Natural fibers can be composted and given to local community gardens. Clothing that is less worn out can be upcycled. This could be through DIY events or collaborations with local fashion students or new designers.

The in-person model poses a unique opportunity for up and coming fashion designers to rent out new designs and gain interest in their clothing. Your Friend’s Closet can develop partnerships with fashion programs and donate clothing for practice or recycling challenges.

The majority of clothing would be repurposed.

This can be offered as craft workshops to the membership or local community (paid or free depending on costs and revenue). Many service organizations and business also seek such opportunities as volunteering and team-building experiences. Products that can be made include stuffed animals, pet toys, rags, trivets for hot dishes, tote bags. These can be taken home or donated to local animal shelters, hospitals, homeless centers and more.

Clothing can also be turned into household items such as blankets, pillow covers, rugs and pouf ottomans. Fabrics that are too costly to handle as an individual store will be given to other initiatives dedicated to keeping clothing out of landfills such as SCRAP, WeCycle and FABSCRAP.

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COST & VIABILITY

Your Friend’s Closet estimates $20,000 needed as a one-time start up cost and roughly $7000 a month to maintain the business (highly variable). These calculations are for a mid-budget in-person store in NYC with details included in the thesis paper.

Going by an industry standard markup of 2.2 to 2.5 times or 70% gross profit margin (Vogue, 2020), 300 subscriptions or 300 customers each averaging 5 items per month is necessary to sustain the business. And the business is expected to recuperate startup costs within 14 months.

Here’s an example of how pricing would work with two types of clothing:

One Time Rental: $9 With Membership: $0

(Like New): $21

Retail: $72

One Time Rental: N/A With Membership: $0

(Used): $12 Original Retail: $30

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Buy
Buy
Original

REFERENCES

Adamkiewicz, I., & Klepp, K. I. G. (2015, June). Age and active life of clothing.

Adamkiewicz, J., Kochańska, E., Adamkiewicz, I., & Łukasik, R. M. (2022). Greenwashing and sustainable fashion industry. Current Opinion in Green and Sustainable Chemistry, 38, 100710. https://doi.org/10.1016/j.cogsc.2022.100710

Bravo, L. (2021). How To Break Up With Fast Fashion: A guilt-free guide to changing the way you shop. Headline Publishing Group.

Chan, E. (2021, September 20). Is renting your clothes really more sustainable? Vogue. https://www.vogue.co.uk/fashion/article/is-renting-your-clothes-really-more-sustainable

Elad, B. (2024, February 28). Money Spent On Clothes Statistics 2024 By Demographics, Generation And Monthly Amount Spent. Enterprise Apps Today. https://www.enterpriseappstoday.com/stats/money-spent-on-clothes-statistics.html

Hawlitschek, F., Stofberg, N., Teubner, T., & Tu, P. (2018). How Corporate Sharewashing Practices Undermine Consumer Trust. Sustainability, 10(8), 2638. https://doi.org/10.3390/su10082638

Inside Out Style Blog. (2018, November). Discover the Average Lifespan of Clothes and What You Keep Longest Even Though You Don't Wear It. https://insideoutstyleblog.com/2018/11/discov er-the-average-lifespan-of-clothes-and-what-you-keep-longest-even-though-you-dont-wear-it.html

Lee, M. (2024). Capsule Wardrobe Data. https://capsulewardrobedata.com/how-much-clothing-do-people-own-2024

Nizzoli, G. (2022, April 6). How Many Times Do We Wear Our Clothes? (Not Enough!) [Blog post]. ProjectCeCe. https://www.projectcece.com/blog/506/how-many-times-do-we-wear-our-clothes/

Smith, P. (2024, February 22). Average number of clothing articles bought by women in the U.S. 1996-2021. Statista. https://www.statista.com/statistics/828040/average-number-of-clothing-items -purchased-by-women-us/

Thomas, D. (2019, August 29). The High Price of Fast Fashion. The Wall Street Journal. https://www.wsj.com/articles/the-high-price-of-fast-fashion-11567096637

United Nations. (2018, November 12). Putting the brakes on fast fashion. Updated June 28, 2021. https://www.unep.org/news-and-stories/story/putting-brakes-fast-fashion

United States Environmental Protection Agency. (2023, November 22). Facts and Figures about Materials, Waste and Recycling. https://www.epa.gov/facts-and-figures-about-materials-wasteand-recycling/textiles-material-specific-data

World Economic Forum. (2019, February 28). Fashion has a huge waste problem. Here's how it can change. https://www.weforum.org/agenda/2019/02/how-the-circular-economy-is-redesig ning-fashions-future/

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