TikTok and Instagram are not the only places Gen-Z and Millennial shoppers are finding new brands these days. Fashion rental marketplaces, in fact, have emerged as significant discovery tools for younger, trend-driven consumers, especially when it comes to emerging and indie labels. 

Such is the case for Nuuly, and it’s doubling down: On June 20, the URBN-owned rental subscription service launched Nuuly Labs, a program platforming minority-owned, up-and-coming and independent labels via exclusive design capsules and extensive marketing promotion. House of Aama, Fang NYC, Degen and Boyko are all part of its debut.

“We wanted to be there as a way to support cool, up-and-coming brands that we found and introduce those brands to our customers, but in a way that feels customized to their business at the time,” Sky Pollard, head of product at Nuuly, tells Fashionista. “We can really work with brands to say, ‘What’s exciting or different about your particular business?’ whether it be the aesthetic or the way that they work, and ‘how can we translate that for customers?'”

Aside from positioning young brands for growth, Nuuly Labs hopes that working with these labels will attract fashion-forward shoppers who are on the hunt for the next cool designer. Whether it’s a new brand or unfamiliar product, “Discovery is definitely a goal for us,” Pollard shares. 

Rent the Runway (RTR) has been wagering a similar bet. While it’s worked with indie brands since it launched 15 years ago, the company has shifted its strategy to focus on that aspect of the business more purposefully. The end goal is for RTR to become the discovery engine for fashion, Jenn Hyman, CEO and founder of RTR, reveals over email. “[We want] to be this entirely new marketing channel for coveted brands to acquire future customers of all ages in an unconventional way and at a lower cost,” she explains.

To that end, RTR has established two key initiatives: First, it developed a revenue share model that allows brands to maximize their earnings while RTR acquires inventory at zero or low upfront cost. Second, it’s engaging in exclusive design collaborations, which Nuuly does as well. 

“These partnerships are a creative solution for working with designers whose products may be too delicate or high-priced to support a traditional rental model,” Hyman explains. “We co-create these capsules together: sharing data, customer insights and collaborating on everything from silhouette to fabric to fit, all to ensure the collection resonates with our customer and meets operational needs.”

And it already has the data to prove it’s working: Hyman cites a recent survey in which 91% of RTR’s partners said that the platform introduced their brand to new customers whom they weren’t reaching through traditional wholesale. One of the biggest examples is London-based Rixo, which launched an exclusive collaboration with RTR in April as part of its ongoing U.S. expansion. 

Though it’s still too early to measure how many new consumers were acquired through the collaboration, Rixo’s co-founders, Orlagh McCloskey and Henrietta Rix, are thrilled with the substantial visibility it’s brought. In addition to RTR promoting the partnership through email, Instagram, its app and its website, the rental platform also co-hosted a community preview event at Rixo’s New York store.

“It was great to meet so many of the RTR community and hear about their previous Rixo rentals,” the design duo shares over email. “RTR has an incredible and really engaged community, so it was a great visibility moment for us. […] We hope the collaboration helps to strengthen our presence in the U.S., which is a key market for us. Beyond that, it’s reaffirmed that Rixo can sit beautifully in a more circular, accessible model.”

Nuuly Labs is also taking every step to get its brand partners in front of as many shoppers as possible: It has tapped several marketing channels, including website features, social media campaigns, influencer gifting, newsletter promotion and email marketing. 

“The exposure through Nuuly Labs has already helped us tap into a broader audience, especially consumers who care about sustainability, inclusivity and self-expression,” Fang NY designer Fang Guo writes over email. “We’ve seen a steady stream of user-generated content where Nuuly customers tag us after discovering our brand through their rentals.” Working with Nuuly has specifically introduced Fang NYC to a wider female and college-age demographic. (It’s become quite a popular brand among sororities.) 

Degen is also already reaping the benefits of teaming up with Nuuly. Aside from providing exposure, the relationship with Nuuly has boosted the knitwear brand’s production capabilities. For instance, it was able to expand its size range exclusively for Nuuly. Brands also benefit from the post-consumer data Nuuly can provide.

“Brands love that we can give them back feedback regarding the fit or the durability or the quality. They find that they can improve the product with that kind of information,” says Pollard. “For emerging brands, that connection with the customer and just having so many more eyeballs and folks trying it, they’re getting invaluable data back, whether it’s in customer reviews or from us sharing, ‘This thing is or isn’t renting.'”

As new players enter the fashion rental space, they’re integrating brand discovery as a key business point from the jump. Bnto, an AI-powered fashion rental subscription service that works with emerging and trending brands, designs its recommendation engine around introducing new names to its users.

“Our AI and algorithm is built for discovery — combining inventory insights with user preferences to diversify exposure and optimize inventory movement,” says Sixuan Li Pasinetti, Bnto’s founder and CEO, over email. “We want every box to feel like a fashion treasure chest: under-the-radar brands, vintage gems and personalized picks. Like Netflix, our users pay for access and variety, not commitment.”

For brands and the rental platforms they work with, it’s not just about getting users to try new labels — but also getting them to return for more. In a best-case scenario, brands will be able to convert renters into loyal purchasers, while rental platforms make sure they still keep their rental subscriptions. 

It’s working for Degen, which is seeing customers visit its DTC storefront after having a good experience with Nuuly. “Success in partnering with Nuuly means introducing Degen to new people who are curious to learn more,” says designer Lindsay Degen. “I’m always looking to connect with those future forever fans.”

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