Issue #28: A love letter to Nuuly
How have I not written about Nuuly here before?
This past week, Nuuly launched its largest marketing campaign yet with 15 and 30-second ad spots slated to run on TV platforms including Hulu, Netflix, Amazon Prime and Peacock. Plus, they’re launching OOH and social media ads.
I don’t know how I haven’t written about Nuuly on here yet, given that I’m a huge fan of the brand. I started subscribing to Nuuly back in 2022 and have pretty much been a loyal customer ever since. Yes, I’ve taken a few breaks during periods when I didn’t have much going on and didn’t need new pieces, or when I was already spending enough on buying clothes that I didn’t want to spend more to rent them.
Over the past two years, I’ve also been an outspoken advocate for the brand, telling pretty much anyone who will listen when what I’m wearing is from Nuuly and how much I love it. My coworkers have heard it too many times. But I’ve also converted a lot of my friends to Nuuly. And Nuuly makes it easy – their referral program is actually meaningful, and the $10 discount (and $30 for the person referred) motivates me to spread the word. It’s a lesson in consumer loyalty 101: build a rewards or referral program that actually brings value to your customer, and you’ll see them coming back for more. See: Sephora Beauty Insider, Starbucks.
On top of all that, Nuuly does some things really well to position to a Gen Z consumer:
It’s sustainable. Gen Z loves sustainable shopping, whether it’s on Depop or The Real Real or Nuuly. In a world of rapidly changing trend cycles, it also doesn’t make sense to invest your hard-earned cash into a trendy item that will inevitably go out of style in a few months. Nuuly allows us to rent that trendy item, enjoy it while it’s in, and then return it, creating more space in our closet and wallet for long-term staple purchases.
Relatedly, even with the recent underconsumption trend, repeating outfits (and posting them) is still generally avoided, particularly at events where lots of photos are taken. I am a proud outfit repeater, but of course I want to wear something that feels special at events or on trips sometimes. Nuuly essentially allows me to possess a new wardrobe every month, without too severe of a financial investment.
It’s simple. There’s one pricing plan at $98 per month for six items. No plans to choose from. Plus, you can pause or cancel at any time.
It’s fun. Picking out your Nuuly items is like a little treat every month. There are so many choices, and while formal items exist on the site, the majority of Nuuly’s inventory is young, playful, and accessible.
It’s communal. So many of my friends and influencers who I follow use Nuuly. My friends and I are constantly talking about our orders, what worked and what didn’t, and sharing recommendations with each other. If my friend or an influencer orders something that I liked, then I can order it for myself next month. Nuuly has a built-in community effect that drives members to return month after month.
Okay, have I sold you on Nuuly yet? Sorry – I don’t mean for this to be a sales pitch, but as I said at the beginning, I am a huge fan. I have tried Rent the Runway in the past, but my issues with it are:
I don’t love the user interface. Granted, I used it five years ago, so maybe it has improved by now?
There are too many plans to choose from, and most of them are too expensive after the first month.
The items tend to be higher-end and fancier, which doesn’t work for my needs.
Rent the Runway is struggling a bit, with recently reported first-quarter revenue of $75 million, a 1.1% increase over the year-earlier period, and 135,896 average active subscribers. That’s in comparison to Nuuly’s over 250,000 active subscribers and net sales of $77.9 million year over year in their last quarter.
It’s interesting that Nuuly has nearly double the number of total active subscribers but just a little more revenue than Rent the Runway. I would attribute that to Rent the Runway’s tiered pricing model and generally more expensive subscription plans.
I’m not sure Rent the Runway should change their model. In fact, they might be smart to lean more into the upscale, higher-end retail market and target higher-earning professionals who have more disposable income to put towards clothing rentals.
Okay, but what about Nuuly’s new ads?
As much as I love Nuuly, I didn’t love their new ads. I think the talking product is just a little overdone, and tends to remind me of M&Ms or a snack brand or something. The Nuuly consumer is young and hip, so I get that they would want to keep their ads fun, playful, and magical. But the talking product? The anthropomorphism? Is it necessary?
According to Nuuly’s Creative Director Kirsten Henri, customers love the Nuuly bags and often tag them in their content.
“Our customers love the bag—it’s a special treat that comes to their house every month, but they sort of anthropomorphize it and treat it like a character.”
Maybe that’s true – but I’m still not sold. You know what would have been so cool? To see real Nuuly item reviews brought to life in an ad spot. If you use Nuuly, you know that customer reviews are invaluable – they tell you whether the item is worth it, if it arrived in good condition, how it fits, and more. When I order my Nuuly bag every month, I spend like 2-3 hours scrolling through item reviews from customers all over the world.
I would love to see an ad that features real customers trying on items in their Nuuly bags, snapping photos, and typing out their reviews, which help inform the next wearer. Nuuly fosters such a wholesome community, and it would be smart for them to lean into it.
So what do you think? Share your thoughts on Nuuly in the comments.
love that concept for a nuuly ad!
omg i’ve forgotten all about Nuuly. I was a loyal fan but then stopped because I felt like it was too many clothes. Once i knew i had to shop every month, things became less interesting — the joys of psychology😝