Click to enlarge

A new website is now offering women the chance to rent up to 160 different designer dress styles for a fraction of their retail cost - and then return them after they've been worn.

In a model similar to that used by Netflix, Rent the Runway is a rent-by-mail service that loans expensive dresses from designers like Diane Von Furstenberg and Proenza Schouler for about one-tenth their in-store cost.

The site, which finishes testing this week, also is providing designers with an opportunity to market their favorite fashions to a new generation of consumers who are either unaware of their brands or unable to afford their steep price-tags.

Luxury Brands Turn to Web

Rent the Runway is the latest example of luxury brands, stores, and designers turning to the web to help support their brands as their customers cut back spending during tough economic times.

Christian Siriano, a New York designer and the fourth-season winner of designer reality show “Project Runway,” is offering his collection through the site. His pieces, some of which cost as much as $3,000 in-store, are being offered for $150 to $200 for rent.

Siriano told The New York Times that while he has strong name recognition, many women are unaware of his brand – something he hopes the site will help change.

The site said that while most designers are selling their dresses directly, they are also offering exclusive runaway dresses that are not available in stores, in exchange for a percentage of revenue.

Rent the Runway, like many other sites in the online luxury world, will be available by invitation-only. Members will have access to rentals ranging from $50-$200 for a four-night loan delivered by mail.

Once a customer is finished with a dress, she will ship it back to the site in a pre-paid envelope. Dry cleaning and insurance are included in the price, though the renter will ultimately be responsible for paying full retail price if the dress is heavily damaged.

Competitive Market

The new site faces competition from established retail stores in major cities that have long offered rental dresses. However, the site’s owners believe the convenience of online ordering will help attract customers.

The web property is also safeguarding against common service issues. It has established a reservation system to make sure a customer can get the dress she wants for a particular occasion.

Additionally, the site is offering on-call stylists, back-up dresses, and a "fix kit" in case the dress doesn’t fit properly.

The site, which has been available for just more than a week, has already received more than 20,000 sign-ups.