Switch offers a "Rent the Runway" model for designer jewelry, allowing customers to access a rotating collection of luxury pieces for a monthly fee. This episode details Switch's unique approach to inventory, authentication, and managing wear and tear, positioning jewelry as an ideal product for rental due to its durability and cleanability compared to apparel. It highlights how businesses can innovate within the luxury market by offering access over ownership.
Key takeaways
Jewelry is uniquely suited for a rental model due to its durability and ease of sanitization, making it feel new for each customer, unlike apparel.
Implement a robust authentication process for high-value items to build consumer trust and differentiate from counterfeit markets. Switch authenticates every piece of designer jewelry in its collection.
Develop a flexible inventory sourcing strategy, such as buying from the public for cash, credit, or membership, to diversify offerings and engage customers in a circular economy model.
Offer customers the option to purchase rented items they "fall in love with" to convert rentals into sales and enhance customer lifetime value.
Position a subscription model around access and variety to appeal to consumers who desire novelty and luxury without the commitment and cost of ownership.
Rent the Runway, but for jewelry. That was the animating idea behind Switch, the company that buys and rents out jewelry for $29 a month.
"Ultimately, jewelry is a very different product from apparel, for rental," Kadisha Cohn said on the Glossy Podcast.
"It's a perfect product for rental. You don't really feel like it's ever been worn before. We sanitize it, we polish it, we kind of bring that shine and make it feel like it's new -- and oftentimes, it is new," Kadisha Cohn said.
Switch also authenticates the jewelry in its collection, which includes thousands of styles. ("We have Chanel, Hermès, Dior, real diamonds and gold," Kadisha Cohn said, also listing Sophie Ratner, Mateo and Do Not Disturb.) Some of Switch's items are one of a kind, and none are valued under $100. Their average value is about $700, which is basically the cost of being a Switch member for two years.
"In two years, to have an endless rotation of jewelry instead of just purchasing one piece -- that, probably, after two years you'd be sick of -- is a really good value for our customers," Kadisha Cohn said.
Switch buys jewelry from the public, for either cash, membership credit or credit to be spent toward purchasing an item outright. "If you fall in love with something, you may want to end up buying that," Kadisha Cohn said.
Kadisha Cohn talked about what goes into jewelry authentication, what to make of wear and tear, and why her career leap into gems was unexpected.
Jewelry is uniquely suited for a rental model due to its durability and ease of sanitization, making it feel new for each customer, unlike apparel.
What does this episode say about brand & content?
Implement a robust authentication process for high-value items to build consumer trust and differentiate from counterfeit markets. Switch authenticates every piece of designer jewelry in its collection.
What does this episode say about customer retention?
Develop a flexible inventory sourcing strategy, such as buying from the public for cash, credit, or membership, to diversify offerings and engage customers in a circular economy model.
What does this episode say about subscriptions & ltv?
Offer customers the option to purchase rented items they "fall in love with" to convert rentals into sales and enhance customer lifetime value.
What does this episode say about dtc strategy?
Position a subscription model around access and variety to appeal to consumers who desire novelty and luxury without the commitment and cost of ownership.
