Jennifer Hyman on Reacting to COVID-19 with Guy Raz | How I Built This | NPR

Transcript

hello and welcome to how I built this resilience edition thank you all for being here this is fashion and beauty week here on resilience edition and we are taking your questions right now on YouTube on Facebook and on Twitter for Jen Hyman of Rent the Runway I'm super excited about this conversation as many of you know the fashion industry has been... Read More

Summary

In this video, Guy Raz interviews Jen Hyman, the CEO of Rent the Runway, a company that offers clothing and accessory rentals through subscriptions. They discuss how the fashion industry has been impacted by the economic crisis and how businesses are trying to build resilience. Hyman talks about the challenges Rent the Runway has faced, including laying off and furloughing employees and closing physical stores. She also discusses the importance of making decisions based on values and the changes she has made in leadership during this time. Hyman addresses criticisms of the fashion industry and explains why she believes fashion is still important in people's lives. She also shares her thoughts on the future of the industry and how Rent the Runway is looking to pivot and expand its offerings.

Questions & Answers

Q: How has the fashion industry been affected by the economic crisis?

The fashion industry has been hit hard by the economic crisis, with many businesses experiencing a drop in revenue. People are focusing less on getting dressed and clothing in general while sheltered at home. The challenge for Rent the Runway is not just about revenue drop, but also about maintaining the vision and energy of the company that thousands of people have believed in over the past decade.

Q: What difficult decisions has Rent the Runway had to make during this time?

Rent the Runway had to cut non-essential expenses throughout the company and financially restructure the business. As it became clear that the shelter at home period would last for a longer duration, the company had to execute a small layoff and a larger furlough of its employee base. These decisions were gut-wrenching but necessary to ensure the survival of the company during this crisis.

Q: How will the fashion industry look when it comes out of the crisis?

The fashion industry is likely to see a shift towards online sales rather than offline sales. The crisis has accelerated trends that were already happening, such as the movement towards sustainability and the focus on value. Rent the Runway is investing in enabling people to personalize their subscriptions and buy from their website in addition to renting. They are also looking to become a larger player in the circular economy and own the message of sustainability.

Q: How is Rent the Runway keeping its fulfillment centers open during this time?

Rent the Runway keeps its warehouses and fulfillment centers open because the business cannot survive without them. The company prioritizes the safety and health of its employees and operates with safety measures to minimize the risk of spreading the virus. Closing down the warehouses would mean not having any revenue coming in, which is an unsustainable situation for most businesses.

Q: How has this crisis changed the way you think about leadership?

This crisis has forced leaders to make decisions with incomplete information and without knowing what the future holds. It has highlighted the importance of making decisions based on values and being transparent with your team. Transparency not only empowers individuals to make quick decisions, but it also fosters deeper trust within the organization. Jennifer Hyman believes in empowering her team to act like founders and encourages open communication and transparency.

Q: How do you stay positive during this challenging time?

Jennifer Hyman acknowledges that it is difficult to stay positive during this time and that she has moments where she feels overwhelmed. She finds support and joy by reaching out to her network of peers, not to ask for advice or give advice, but simply to be a friend and listen to what they're going through. She also emphasizes the importance of being present for her team and creating intimacy through one-on-one meetings and coffee chats, which has brought her hope and joy.

Q: How do you address criticisms that fashion is trivial during this time?

Jennifer Hyman believes that anything that brings normalcy and joy into our lives during this challenging time is important. Fashion has the power to change lives and can provide a sense of confidence and normalcy. She rejects the notion that the fashion industry is frivolous and argues that it is one of the most important and largest industries on earth. Rent the Runway aims to democratize the power of fashion and bring joy to people's lives.

Q: Are you considering pivoting Rent the Runway to other products and industries?

Rent the Runway has already expanded into other product categories, such as ski gear and activewear, and is open to further partnerships and expansions. Jennifer Hyman believes in becoming a larger player in the circular economy and enabling people to personalize their subscriptions. The company aims to be a better partner to designers and is exploring ways to offer more value and sustainability to its customers.

Q: How do you envision the future of work and its impact on women's empowerment?

Jennifer Hyman believes that this crisis may be a turning point for women's empowerment, particularly in terms of remote work. It has proven that work can be done from anywhere and in a more balanced and thoughtful way. The physical sacrifices that have been made in the past, such as leaving the workforce after having kids, may no longer be necessary. She hopes that this reset moment will lead to a greater focus on relationships, human connection, and work-life balance.

Takeaways

The COVID-19 crisis has posed significant challenges for the fashion industry, including plummeting revenue and the need for difficult decisions regarding layoffs and furloughs. Rent the Runway has been proactive in cutting expenses and shifting its focus to online sales and sustainability. Jennifer Hyman's leadership philosophy has evolved during this time, prioritizing values and transparency in decision-making. She sees this crisis as an opportunity to reshape the industry and work culture, with a greater emphasis on work-life balance and remote work. Ultimately, the crisis has highlighted the importance of relationships and human connection in both business and personal life.