E-retailer Le Tote Inc. is generating millions from “this old thing.”
Le Tote CEO Rakesh Tondon launched the web-only merchant in 2013 as an apparel rental subscription service. A shopper pays a flat fee every month, starting at $59, and Le Tote mails her a box of five pre-worn garments that she selected online (Le Tote provides recommendations). She can wear the items as many times as she wants in the month before returning the box, and she also can receive as many boxes as she wants during the month.
Today, the retailer has hundreds of thousands of customers and Le Tote’s 2017 sales projections are “well north of $150 million,” Tondon says. Sales have grown 100%-150% year over year, every year since the retailer launched.
Le Tote achieved this growth because it listened to consumers about what they want out of a rental apparel service and was open to switching its business model, Tondon says. This nimbleness, as well as investment in artificial intelligence, has helped this web-only retailer achieve such strong growth.
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