Iran cyber police target ‘un-Islamic’ stores on Instagram

Authorities in Iran are cracking down on small businesses that sell “un-Islamic” clothing and other products on social media, notably Instagram. Owners of Instagram businesses say they have been contacted by the Islamic Republic’s cyber police, who take control of their pages, replacing images of their products with messages saying the pages have been closed for reasons of “#IslamicHijab” or that, “According to a court order, this page has been shut down”.

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While Iran’s notorious “morality police” have kept a low profile since the eruption of the “Woman Life, Freedom” protests in September 2022, the Islamic Republic’s cyber police have stepped in online, imposing their brand of “morality” on small businesses that rely on social media – many of them owned by women.

Iran’s cyber police, known as FATA, are responsible for monitoring illegal online activity such as child pornography, fraud, and drug and weapon sales. But in recent months they appear to have another priority: targeting small businesses on social media. While networks such as Facebook, Instagram, X, Whatsapp and Telegram have been blocked in Iran for years, millions of Iranian users use VPNs to bypass the censorship.

Clothing and lingerie designers, tattoo artists, massage therapists, tour guides, make-up artists … the businesses that are targeted promote what is perceived as a Western lifestyle, often with photos that violate Iran’s practice of Sharia law. Women appear on lingerie and fashion pages without Islamic hijab, their hair and arms visible. Women and men are seen touching each other on pages that promote tattooing or massages.

Their pages are taken over by the cyber police, and the content is replaced by an announcement: “This page has been closed by the Police for the Sphere of the Production and Exchange of information,” the official name of the FATA cyber police. Businesses that have spent years accumulating thousands of followers see their work and livelihood put on hold.


Despite the pressure from the Islamic regime in Iran on the small fashion designers who sell their products on Instagram, many of them continue their work under fear, as our Observer confirms. The photos have been blurred and modified by FRANCE 24 to ensure the security of the pages. © Observers

The online businesses’ motivations are usually economic, not political. Their owners cannot live without the income they earn from selling their products on social media, especially Instagram. According to a survey published in 2022, there are more than 415,000 small businesses on Instagram in Iran. The jobs of more than 1 million Iranians are directly and indirectly linked to these small businesses on Instagram.

This ceramics manufacturer, which sells its products on Instagram, removed these photos and ceased production of some of its items after Iran's cyber police FATA started targeting online businesses selling products deemed un-Islamic.
This ceramics manufacturer, which sells its products on Instagram, removed these photos and ceased production of some of its items after Iran’s cyber police FATA started targeting online businesses selling products deemed un-Islamic. © Observers

Pages that promote tattooing and massages are regular targets of Iran’s cyber police. However there are hundreds of tattoo artists and masseurs who are active on Instagram.
Pages that promote tattooing and massages are regular targets of Iran’s cyber police. However there are hundreds of tattoo artists and masseurs who are active on Instagram. © Observers

Another page closed by the police, where the police did not hesitate to also remove the bio and put a new hashtag in the bio: “#IslamicHijab”
Another page closed by the police, where the police did not hesitate to also remove the bio and put a new hashtag in the bio: “#IslamicHijab” © Observers

 

‘I am not going to change my lifestyle out of fear’

 

Tina [not her real name] is a small business owner in Iran. Her sales are solely dependent on her Instagram page. She designs and produces women’s clothes, including underwear, and her page features images that show female models with bare shoulders, arms and midriffs, in violation of Iran’s restrictive Islamic hijab rules. While Tina’s Instagram page has not yet been targeted by the police, she is concerned because many of her friends and colleagues with small businesses on Instagram have been ordered to close.

 

I have been running this page for about a year. My only source of income is my clothing, which I sell on my Instagram page. I also try to sell my stuff on Amazon, but it’s very complicated in Iran because we are under an international embargo.

I have several friends whose pages have been closed by the police. They have received either a text message or a phone call, in some cases even via their Instagram messages, asking them to go to the police. The police ask for their password, change the password, then delete all their content and replace it with a single post saying the page was shut down by the police.

In some cases, my friends were lucky that the police only asked them to delete certain photos and they were able to keep their page. I also have some other friends who have ended up in court and are awaiting trial.

This is so much stress that I don’t even want to think about it. My friends always warn me to be careful, but I just refuse to think about it.

I could do business differently, present my products differently. But firstly it would reduce my turnover. And secondly, why should I do that? I am not going to change my lifestyle out of fear of the regime.

Even if they close my page, if they delete my content, I will create a new page.

They can force me to sell my products without photos and videos of models on my page, but I will also make another anonymous page, with models. I will not give up.

What I do is completely normal. It’s the demands of the Islamic Republic that are abnormal.

I also have a personal battle to fight. My family is not very open-minded and they are not happy with what I am doing. They are not religious, but they are conservative. They have changed a lot in recent years, especially after the “Woman Life Freedom” movement, but they still don’t like it when their daughter publishes her photos in revealing clothes that I make to sell.

I don’t want to fight, I’m not an activist, but I will not change my lifestyle, the way I want to live, unless I am forced to. When you live in a country like Iran, you get used to always living in fear and threat, but we have to live our lives. That’s the way it is. 

 

In a further attack on the freedom of social media in Iran, Mohammad Mahdi Esmaili, the Iranian minister of culture, announced on January 31 that “all bloggers with more than 5,000 followers must apply for permission to continue working”.

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France’s fast-fashion ‘kill bill’: Green move or penalty for the poor?

In a bid to combat the “fast-fashion” and “ultra-fast-fashion” brands that have taken France by storm, a young lawmaker from the conservative Les Républicains party has proposed slapping an extra €5 on every fast-fashion purchase in the name of the environment and the French textile industry. But criticism of the bill has been fierce, especially on social media, where some have slammed the draft bill as unfair, saying it will only serve to punish the poor.  

“So gorgeous, so classy!,” 31-year-old conservative lawmaker Antoine Vermorel-Marques exclaims as he films himself pulling out a pair of shoes from a box purportedly ordered from the hugely popular Chinese fast-fashion online giant Shein. “Treated with phthalate, a substance which is an endocrine disruptor that can make us sterile,” he adds as an ironic kicker.

In the parody-like video posted on TikTok in mid-February, Vermorel-Marques unpacks and shows off his great “hauls” in much the same way many of the platform’s fashion and beauty influencers do to promote new products they have purchased or been “gifted” by the brand.

But Vermorel-Marques’s video is hardly meant to promote Shein’s products. It is intended to accompany his draft of a fast-fashion “kill bill” he recently proposed to the National Assembly.

@antoinevermorel42 🛑 Les vêtements à 2€ qui arrivent en avion, contiennent des substances nocives pour la santé et finissent sur les plages en Afrique, c’est non ! Je dépose à l’Assemblée nationale une proposition de loi pour instaurer un bonus-malus afin de pénaliser les marques et pour encourager les démarches plus vertueuses ♻️ #shein#sheinhaul#ecologie#fastfashion#stopshein#pourtoi#fyp @lookbookaly @menezangel_ @loufitlove @lila_drila @cilia.ghass @tifanywallemacq @veronika_cln @lia__toutcourt @iamm_mae.e@IAMM_MAE.E ♬ son original – antoinevermorel


The bill is expected to be debated in the lower house of parliament in the next few months and was drafted to support France’s ailing textile industry which has been hard hit by the country’s growing fast fashion consumption. The bill calls for a €5 penalty for any fast-fashion purchase.

Fast fashion, or the high-speed, low-cost production of the latest trends, has grown so strong in France in recent years that it is threatening the future of many traditional and domestic fashion manufacturers. The average price tag for a piece of Shein clothing is estimated at just €7. Oxfam France describes fast fashion as “disposable”, warning on its website that it has “disastrous social and environmental consequences”.

Although a host of brands fall under the fast-fashion category, Vermorel-Marques is particularly targeting the “ultra-fast-fashion” online retailer Shein. The China-founded but Singapore-based company is estimated to add between 6,000 and 11,000 new offerings to its catalogue every single day. The brand has frequently come under fire for the environmental and social consequences of its throw-away business model, and according to Vermorel-Marques, for “destroying France’s textile industry”.

But it did not take long for the draft bill to whip up a storm, with some likening the €5 penalty to yet another tax primarily penalising the poor as well as restricting their access to affordable and trendy clothes.

‘Another step towards injustice’

Shein, and peers like Temu and Boohoo, have found an appreciative audience among consumers who rarely have to spend more than €10 to fill their wardrobes with the latest trending skirts, tops, trousers or accessories.

“In France, there’s a gap between our convictions, the awareness that we need to make an effort, and acceptance of the measures to combat these issues,” said Cécile Désaunay, director of studies at Futuribles, a consultancy firm that analyses transformative societal, lifestyle and consumption trends.

Désaunay said that this €5 penalty is particularly sensitive “because it touches on what is considered the freedom to consume”.

However, she emphasised that the law is not just meant to punish but also to reward, and would work as a bonus-penalty system that would make sustainable fashion more accessible to everyone.

In an interview with the quarterly narrative journalism publication Usbek&Rica, Vermorel-Marques explained how the system is meant to work: While a fast-fashion shopper would be slapped with a €5 penalty for every purchase, a person buying an environmentally friendly and domestically-produced piece of clothing would instead receive a €5 bonus.

“What is key here is that it’s not another tax,” he said. “We’re not here to take money from you. We’re just saying: ‘If you pollute, you pay. And if you don’t pollute, you win’. It’s a win-win for both the consumer and the planet.”

A supporter of the bill took to the social media platform X to expand on the lawmaker’s argument:

“This isn’t a ‘tax’. Shein, Ali[Express], etc. are already taxed, but what we’re talking about here is a penalty punishing those who participate in fast fashion, and by extension, in the exploitation of people and the increase in waste.”


A worker makes clothes at a garment factory that supplies fast fashion e-commerce company Shein in Guangzhou, China, on July 18, 2022. © Jade Gao, AFP

Désaunay noted it was not the first time the bonus-penalty system has been used to draw up new legislation to encourage more responsible and sustainable consumption behaviour, pointing to, among other things, the bonus offered to French car buyers who opt for less-polluting vehicles, and Sweden’s initiative to reduce the value-added tax on used item repairs.

Although Désaunay said she completely understands peoples’ need to dress themselves, many, and especially younger shoppers, now over-consume thanks to low-cost brands like Shein.

‘I’m poor, but I have values’

“Before, the norm was to have fewer clothes, but that lasted longer. We paid more for them, but we made them last,” Désaunay explained. “Today, we’ve moved away from that mentality. We have clothes that are not as strong, that don’t last as long, and we’re getting used to always having more of them because they cost less.”

On social media, the draft bill has divided users. “Fast fashion for some, the only way to dress for others,” one user wrote, while another stated: “I’m poor, but I have values, I don’t order from these sites! You can be poor and have values!”

Désaunay said that many get trapped in the mindset “that in order to dress cheaply, you have to buy clothes ‘Made in China’, as if there are no other alternatives”. One sustainable alternative, she noted, is simply to turn to second-hand shopping.

“The challenge for the textile industry is that charities and other recycling centres are bursting at the seams with [used] clothes,” she said. “Given the amount of clothes already on this planet, we could still dress humanity for another 100 years even if we stopped making them.”

But despite the many positives related to second-hand shopping, Désaunay said it is still often frowned upon “and even rejected by the poorest in society”, due to the stigma attached to wearing “hand-me-downs”.

According to a report by shopping application Joko, Shein had a 13 percent French market share in value terms at the end of 2023, making it France’s second-favourite online fashion brand. The No. 1 spot, however, was claimed by Vinted, a rapidly growing second-hand clothing platform.

“The fast-fashion mentality is coming to an end,” Désaunay said.

Although the proposed bill has not even been debated yet, she said it will serve as a “pretext to rethink the value of the items we buy”: “If it’s not expensive, it’s because there’s a trade-off. In this case, an environmental trade-off.”  

The fast fashion industry has regularly been shamed for how its business model damages the environment (the cheap and toxic chemical pollutants used in the dyes, as well as the consumption of water and fossil fuels), negatively impacts climate change (CO2 emissions) and how it exploits human rights (forced labour). In a recent report, the French chapter of the environmental grassroots network Friends of the Earth (FoE) estimated that Shein alone produces some 1 million garments per day, which corresponds to between 15,000 and 20,000 tonnes of CO2 emissions.

But, the group pointed out, brick-and-mortar fast-fashion retailers such as Zara, H&M, Primark and Uniqlo are hardly better. “[What they] don’t do in terms of quantity of new offerings, they make up for in quantity produced, as well disrespect of human rights,” FoE said, noting that these brands have all been accused of either profiting from, or having profited from, forced labour by China’s Uighur population.

In 2022, Shein recorded roughly $23 billion in sales, according to the Wall Street Journal. For 2023, its sales are estimated at nearly $32 billion.

This article was adapted from the original in French.

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Historian debunks claims that Coco Chanel served in the French Resistance

New documents surfaced in September indicating that Gabrielle “Coco” Chanel may have played a double role during World War II, serving not only as an informant for the Nazis but also as a member of the French Resistance. But a historian who has analysed the new evidence says he has “serious doubts” about her alleged membership in La Résistance, suggesting the French fashion icon may have used the documents to restore her reputation after the war.

The previously unseen documents were revealed to the public in mid-September at the opening of a London exhibition tracing the life and legacy of the French couturier. Alongside more than 50 of Chanel’s iconic tweed suits and a whole room dedicated to Chanel No. 5 perfume, a part of the “Gabrielle Chanel: Fashion Manifesto” retrospective also dealt with the designer’s wartime past.

Chanel’s links to the Nazis have long been established by declassified documents. She spent the war living at the Ritz after falling in love with German intelligence officer Baron Hans Gunther von Dincklage. In July 1941, at the height of World War II, the Nazis registered her as a “trusted source” and gave her the code name “Westminster” due to her close connections with the British government and especially Winston Churchill. In 1943, Chanel was, among other things, tasked with the secret mission of trying to persuade Churchill to negotiate with the Germans.   

But the exhibition included two new documents claiming she was also part of the French Resistance. The first is a certificate allegedly showing her membership in the Resistance between January 1, 1943 and April 17, 1944 in which Chanel is described as an “occasional agent”. The other shows her affiliation with the “Eric” underground resistance network and lists her code name as “Coco”.

A 1957 certificate purportedly attesting Gabrielle “Coco” Chanel’s membership in the French Resistance movement. © Guillaume Pollack / Private / Archive reference number: SHD/GR 16 P 118851

“We have verification from the French government, including a document from 1957, which confirms her active participation in the resistance,” exhibit curator Oriole Cullen told The Guardian at the time.

Gabrielle Chanel: Fashion Manifesto” opened at the Victoria and Albert Museum in London on September 16.

It was not stated how the curators had found the documents.

Thin file

The new findings intrigued French historian Guillaume Pollack, a specialist on the French Resistance, who last year published a book on the history and inner workings of the movement’s networks.

“It really surprised me, and I thought to myself: ‘Chanel in the Resistance? How in the world could I have missed something as big as that?” he recalled, saying he went on to spend two weeks chasing down the documents.

He finally found them in the French military archives in the eastern Paris suburb of Vincennes.

“When I opened up the file, something struck me right away: It was basically empty. Aside from two official documents, there was nothing there. I’ve rarely come across such a dry file,” he said.

Under normal circumstances, Pollack explained, such files are filled to the brim with information explaining the exact role and actions of the resistance member in question, and are backed up with several third-party testimonies. 

Pollack explained that the reason for this is that these files were compiled by the French government after the end of World War II and conform to special legislation that stipulates how and under what circumstances a person can be officially recognised as a onetime member of the French Resistance.

“If one thing is clear, it is that in order to be called a résistant (member of the Resistance), you need to have been active as such and recognised [by others] as such.”

“In this case, there is none of that – not a single trace,” he said, noting that a bare-bones certificate with Chanel’s name does not offer convincing proof.

An important year for Chanel

The second document, citing Chanel’s role in the Eric network, also puzzled Pollack: “It seemed really strange to me.” 

Eric was a French resistance network that, for the most part, operated in the Balkans. Pollack said that even though its leader, René Simonin, was repatriated to Paris in 1943 and the network continued to work from the French capital for another year, there is no mention of Chanel in any other documentation related to the network apart from the affiliation certificate found in the military archives and presented at the exhibition.

On top of that, the network name, “Eric”, was written over a part of the document that had clearly been whited out.  

A document purporting to show that Chanel belonged to the French Resistance network
A document purporting to show that Chanel belonged to the French Resistance network “Eric”. © Guillaume Pollack / Private / Archive reference number: SHD/GR 16 P 118851

Pollack said he also questioned the date that Chanel’s membership certificate was issued: 1957. Chanel was 74 years old at the time, and Pollack said that was unusually late compared to other Resistance members.

It was also “the year Chanel was honoured with the ‘Oscar’ of fashion”, he said, referring to the prestigious Neiman Marcus fashion award created in 1938. At the time, it was one of the only international fashion designer awards in existence. 

No reason to keep it secret

Pollack said that if Chanel really was a member of the French Resistance, she would have had no reason to keep it secret and it would likely have been known before now.

“Especially considering the context surrounding Coco Chanel [who has long been known as a collaborator], it just doesn’t make sense.”

She may have had documents produced to rehabilitate her tarnished reputation in certain circles after the war, Pollack suggested

“In the 1950s, several different Resistance veteran organisations emerged. It would have prompted a lot of questions from former Resistance fighters” if Chanel had claimed to have been part of the movement, Pollack said, noting she would most likely have had to justify her role by providing details on what she did, where, when and with whom.

Pollack said he has “doubts, huge doubts, about this documentation” that has newly been discovered. “The certificate proves nothing.”

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Fashion and footraces at Flemington as crowds exceed 80,000 at the 2023 Melbourne Cup

More than 80,000 punters descended on the Flemington Racecourse for the running of the 2023 Melbourne Cup — the 163rd iteration of the historic race.

Racegoers were on the edges of their seats as Mark Zahra made history as the first jockey in decades to ride back-to-back Cup winners, when he steered Irish horse Without A Fight to victory. 

The horse was trained by father-and-son duo Anthony and Sam Freedman.

Three horses were found to be lame after the race sparking concern from RSPCA Victoria. 

There was a chance of rain late in the day but it held off, with punters enjoying warm spring weather with temperatures in the low 30s.

One couple celebrated achieving a trifecta win.()
Delta Goodrem wearing yellow against a green backdrop at the Melbourne Cup.
Australian singer Delta Goodrem performed her hit Born to Try leading up to the big race.()

The attendance figure for today’s event wound up exceeding 84,000, according to Network 10. At last year’s Melbourne Cup — the coldest event since 1913, with the day’s temperature reaching a high of 13.3 degrees Celcius — numbers were just shy of 74,000.

Meanwhile, pro-Palestinian protests near the racecourse led to temporary traffic disruptions near Flemington and multiple arrests, according to police.

Earlier, attendees gathered bright and early outside the gates at Flemington in scenes reminiscent of the Boxing Day sales.

Jeremy De Souza was in line early to beat the long queues outside the racecourse gates and secure a coveted shaded spot in the new grandstands.

“Got here about 6:30am, so two hours before to stand here and ready for the run in a couple minutes time,” he said.

“It’s very much like the horses going out of the gates here today.”

Men in suits standing before gates
Jeremy de Souza was in pole position for the race into Flemington.()

Laura Minahan brought a change of clothes in preparation for the mad dash for the members bar.

“This is the race before the race, so got the flats on with the heels in the bag and a different hat,” Ms Minahan said.

“So hopefully fingers crossed, we get somewhere inside.”

Brett Adams and Mark Secombe embarked on a road trip down from Queensland to back Cup favourite Gold Trip.

Their gold jackets were showing their support for the 7-year-old stallion, but there was some concern they might be a little too eye-catching.

“I’ve got to stay out of view of the horses, it might put them off,” Mr Adams said.

Two men in gold jackets
Brett Adams and Mark Secombe were backing Gold Trip to win it all.()
A man wearing shorts, a white shirt and a bow tie at the Flemington Racecourse.
Robert Pesevski took advantage of the new, relaxed rules around shorts-wearing.()

Paul Friend travelled from Dunedoo in New South Wales to attend this year’s Cup, and said he had been attending, on and off, for 25 years.

He said he was willing to step in for the real jockeys if it was an emergency.

“If there’s a scratching and one of the top jockeys can’t make it, I’m on standby just near the mounting yards, so come on down and I’ll throw the leg over,” he said.

“The horse will still be coming before the next race starts.”

Melbourne Cup fashion 5

Melbourne’s temperature hit 30.6 which was good news for Victoria Racing Club members who were allowed to wear tailored shorts to the event for the first time.

Melbourne Cup 2023 fashion

The Melbourne Cup is the fashion event of the year for many Australians. (ABC News: Rachel Clayton)

Melbourne Cup 2023 fashion

Some spectators got in early and secured prime spots. (ABC News: Rachel Clayton)

Melbourne Cup 2023 fashion

Tens of thousands are expected at Flemington Racecourse this year. (ABC News: Rachel Clayton)

Melbourne Cup 2023 fashion

Champagne was flowing at the exclusive Birdcage Enclosure. (ABC News: Rachel Clayton)

Melbourne Cup 2023 fashion

The weather was hot, leaving some feeling a little tired. (ABC News: Rachel Clayton)

Melbourne Cup 2023 fashion

Flat footwear was preferable for some. (ABC News: Rachel Clayton)

Melbourne Cup 2023 fashion

Smiles were contagious around the racecourse. (ABC News: Rachel Clayton)

Melbourne Cup 2023 fashion

The energy was palpable as crowds descended on Flemington. (ABC News: Rachel Clayton)

Melbourne Cup 2023 fashion

Bright colours were in this year. (ABC News: Rachel Clayton)

Protest disrupts traffic near Flemington

The Melbourne Cup coincides with legal reforms that came into effect today to decriminalise public drunkenness in Victoria.

The timing has previously been criticised by groups including the Victorian Police Association, with secretary Wayne Gatt expressing concern the change would leave police with little power to act.

The government has set up a sobering centre in Collingwood with 20 beds for emergency services to place people who require a place to sober up.

Meanwhile two separate protests have taken place near Flemington, including both a small group opposed to horseracing and about 100 pro-Palestinian protesters who have clashed with police.

A woman on top of a blue van is arrested by a police officer.
Pro-palestine protesters were arrested by police at the perimeter of the Flemington Racecourse.()

Police said the cohort of pro-Palestinian protesters arrived at the Epsom Road, Ascot Vale Road and Racecourse Road roundabout at Ascot Vale about 11am, resulting in traffic disruptions near the Flemington Racecourse in the hours before the running of the Cup.

Two protesters, including a woman who climbed onto the roof of a white van and refused to get down, were pepper-sprayed and arrested, according to police.

Police said there were about 80 protesters at the scene, and they arranged for the van to be towed away.

Another, smaller protest against horseracing gathered at the nearby Footscray Park Bowling Club this morning, with a group of about 10 people using placards, chants and a large banner laid out on the green to make their voices heard.

A group of people hold up signs opposing horseracing industry.
The group of anti-horseracing protesters gathered in nearby Footscray.()

Three lame horses spark RSPCA concern

Right You Are, a seven-year-old Australian gelding, struggled in the heat and failed to finish the race.

It was seen being hosed off with cold water after the race.  

A seven-year-old stallion from France, Gold Trip, and a six-year-old gelding Alenquer were also found to be lame. 

Racing Victoria said all runners in the Melbourne Cup were assessed immediately after the race by vets who “reported that no significant findings were detected at that time”.

“The veterinarians continued to monitor the runners as they cooled down following the race,” it said in a statement.

“It was upon re-examination that Gold Trip, Alenquer and Right You Are were reported to have shown a degree of lameness once they had cooled down from competing.”

Empty bottles and cups and cubbish lay scattered on the grass at the Flemington Racecourse.
The clean-up task lies ahead following the Melbourne Cup. ()

Racing Victoria said none of the horses required a referral to a veterinary clinic.

“All three have returned to their respective stables and, as in routine, will be assessed by their stable veterinarians in the coming days.” 

But RSPCA Victoria said it was “very concerned” about the number of injured horses. 

“We obviously expect the industry to make sure there’s a thorough investigation into what led up to this and what could be done to prevent it happening in future,” CEO Liz Walker said. 

“It does highlight that injuries are a real risk in horse racing.”

The legs of two women sitting on the ground next to each other with high heels off.
Punters kicked off their heels after a long day track side. ()

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This startup wants to curb fast fashion by helping you rent out your closet

By Rotation, a U.K.-based clothing rental app, hopes to eliminate the need for fast fashion by making peer-to-peer clothing rental mainstream in the United States.

The startup expanded to the United States in May. By Rotation aims to grow usage in New York City this year before expanding to two other major U.S. cities next year.

By Rotation may sound like another rental service such as Rent the Runway, Armoire or Nuuly, but its founder and CEO Eshita Kabra-Davies is quick to point out that its peer-to-peer structure more closely resembles sharing-economy companies such as Airbnb and Uber.

By Rotation has taken a social media-style approach to building its community of lenders and renters by encouraging dialogue and giving users the option of receiving notifications when their favorite lenders list new items.

Individual users decide if they are willing to ship their items to users in other states. Some will offer only hyperlocal pickup rentals.

“The vision is really to be able to walk three streets down and pick up a rental, even last minute, because you have a few lenders in your neighborhood that are the same size as you, and we’ve already seen that happen in London,” Kabra-Davies said.

By Rotation founder & CEO Eshita Kabra-Davies

Source: By Rotation

The digital fashion rental market is expected to more than double in value from $1.3 billion in 2021 to $2.8 billion by 2030, according to data from Verified Market Research. Meanwhile, online resale is expected to reach $38 billion by 2027, according to ThredUp’s 2023 Resale Report. 

Despite the expected growth, online fashion rental and resale has proven to be a difficult business, especially on Wall Street. The challenges have come partly because many in the space hold a lot of inventory and spend a lot of money to do so. 

Shares of Rent the Runway, ThredUp and The RealReal are all down about 90% since the companies went public. All three companies have yet to become profitable.

By Rotation does not own a single item listed on its platform, making it a standout among the other major rental and resale players in the U.S. Instead, the inventory and listings come from the people using the app. Kabra-Davies describes it as a “very cost-efficient business model” that is “completely different to what the incumbent players are doing in the U.S.”

“No one is doing what we’re doing,” according to Kabra-Davies. “We don’t need to sell. We don’t need to tell people, like, please list your items, we will give you money for it; nor do we need to buy any items to build up that supply.”

In the U.K., By Rotation has more than 330,000 registered users with more than 68,000 listings. U.S. users have already listed more than 1,800 items across at least 15 states, according to Kabra-Davies.

The growth is happening organically, she said. The startup plans to start marketing in the U.S. this summer.

As the app grows, the startup is taking steps to ensure renters are trustworthy and lenders’ items are protected from damage. For example, a new user cannot rent an item that has a retail value above $1,000 through the app until they have completed several other lower-priced rentals and have been reviewed and rated for those rentals.

By Rotation uses smart pricing to help lenders determine listing fees. It recommends that each item’s daily rental fee be about 3%-5% of the item’s retail value, Kabra-Davies said.

By Rotation has not publicly shared its valuation, but it is actively seeking new investors for its third round of funding. The company raised $3.8 million in prior rounds, according to Kabra-Davies. 

Despite being early in its fundraising, the company is on track to be profitable by spring 2025, according to Kabra-Davies.

Randi Wood, a renter from the Los Angeles area who is using By Rotation to lend out items from her small business, Entre Nous Showroom, recently rented a dress from By Rotation for a trip to Mexico. She described her experience as “really great” and said she appreciates how the user-run app drives interactions.

“The person that I was renting the dress from, she was very communicative, and it was like, right away, we were having a back-and-forth conversation,” Wood said.

‘Racist and broken’ system

The desire to create something different led Kabra-Davies toward her business in the first place. The idea for By Rotation first came to her in late 2018, while she was planning her honeymoon to Rajasthan, the state in northern India where she was born and from where she emigrated.

“I wanted to wear nice clothes on my holiday and I thought about renting but there was no sort of digital fashion rental player here in the U.K. or even Europe,” she said. “I started thinking about how I actually just wanted to reach out to all these women that we see on social media, who seem to wear one outfit once and never repeat them ever again.” 

Kabra-Davies admits the concept of reaching out to someone unsolicited to borrow their clothes is a bit weird, so she did what many people do. She purchased some new outfits to wear while on vacation.

But those outfits took on a new meaning once she arrived in India a few months later.

“There was a lot of textile waste. And I just couldn’t help but feel that I was probably part of this problem. I had bought new clothes for this holiday, and I wasn’t sure that I loved what I was wearing,” she said.

Kabra-Davies was deeply concerned about how one of her passions was hurting people in the country where she was born. In fact, a new report from the European Environment Agency found that 90% of used clothes and textile waste from Europe ends up in Africa and Asia.

It just kind of felt racist and broken,” she said. “I was investing in all these nice clothes. It was actually very problematic to the entire world in terms of climate crisis.”

Shortly after returning from her trip, while still working in investor relations at Marathon Asset Management in London, she decided she wanted to merge her corporate business experience with her lifelong love of fashion and her newfound concerns about the unintended consequences of fast fashion. So she began By Rotation as a side hustle.

The app officially launched in the U.K. in October 2019, about six months after By Rotation was incorporated, and Kabra-Davies transitioned to running her new company full-time.

A lean business model

As By Rotation moves into the U.S. market, Kabra-Davies hopes the low-cost business model can give it more room to grow — and give the startup an edge over its established competitors.

Martha Petrocheilos, a lender based in New York, said she uses By Rotation because it has “the latest and greatest of fashion.” In the past, she said, she has tried Rent the Runway but found that it had “really old inventory,” which she attributes to the company “[holding] inventory as opposed to individual lenders.”

The lack of inventory also makes By Rotation more sustainable and helps prevent the apparel from ending up in landfills.

Esther Gross holds one of her dresses listed to rent on By Rotation.

Source: Esther Gross

Esther Gross is still setting up her By Rotation closet in New York but has experience using the app from when she previously lived in the U.K. She compares renting out items from her wardrobe to “a new investment asset class.”

Gross started a spreadsheet to keep track of the retail cost and rental revenue of each item in her digital closet. “There were four items that I made the full price back on in the U.K., and then there was another seven that I made over 50% of the price back,” she said.

Over time this revenue became her shopping budget, and she “was never buying more than what I was making on By Rotation.” 

It’s By Rotation’s lean business model that is helping attract attention from competitors.

The startup has “essentially no cost of acquisition,” said Kabra-Davies, who also said she’s been approached by at least two public companies in the rental and resale space.

One of the companies has “looked at our app and also our documents,” she said. Kabra-Davies has met with the other at least once.

When asked if she was open to selling her company, she said, “There’s a price for everything, but I’d love to see the ticker ‘BYRO.'”

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