Digital systems in fashion condo: a enterprise model evaluation

Article booklet date: 26 March 2021

Issue e-book date: 1 March 2022

Abstract

Purpose

The reason of this paper is to discover the key features of style apartment from a business version angle with a focal point at the role performed by digital systems.

Design/methodology/method

A qualitative research layout changed into used primarily based on more than one case research of 3 Italian style rental companies.

Findings

The findings screen the key factors characterizing fashion apartment business fashions and the centrality of virtual structures in price introduction, configuration and seize sports. The look at also determined that style apartment platforms are likely to showcase similarly a hit improvement inside the future.

Originality/cost

The instructional literature on style apartment has been specifically focussed on examining purchasers' motivations and worries, paying little attention to the organization's perspective. To date, no preceding look at has tested fashion apartment commercial enterprise fashions from the retailer's perspective. This paper is the primary to explore the key additives of style condominium business fashions and the way virtual structures influence them from the angle of outlets. The originality of the study is similarly bolstered by using the precise context of analysis, specifically, Italy, a main country for global style. @ Read More modernfashdesigner thetechcertified       

Keywords

Citation

Arrigo, E. (2022), "Digital structures in fashion condominium: a enterprise model evaluation", Journal of Fashion Marketing and Management, Vol. 26 No. 1, pp. 1-20. Https://doi.Org/10.1108/JFMM-03-2020-0044

Publisher

Emerald Publishing Limited

Copyright © 2021, Elisa Arrigo

License

Published by way of Emerald Publishing Limited. This article is published underneath the Creative Commons Attribution (CC BY 4.Zero) licence. Anyone might also reproduce, distribute, translate and create derivative works of this newsletter (for each industrial and non-business purposes), difficulty to complete attribution to the original guide and authors. The complete terms of this licence can be visible at http://creativecommons.Org/licences/by using/four.Zero/legalcode

1. Introduction

Recent macro-traits, along with the ones of collaborative consumption (Botsman and Rogers, 2010; Möhlmann, 2015) and the sharing financial system (Belk, 2014), have leveraged digital technology to carry ahead new business fashions (Zott et al., 2011; Chesbrough, 2010; Teece, 2010) in many industries, which include hospitality (e.G. Airbnb), transportation (e.G. ZipCar) and, extra lately, fashion (e.G. Rent the Runway). In the fashion retail industry, examples of entrepreneurial initiatives that adapt the idea of sharing and collaborative intake to the style context, through supplying garb and luxury reselling, renting or swapping, have raised unexpectedly before the emergence of coronavirus sickness 2019 (COVID-19) (Adam et al., 2018; ThredUp, 2020), due to the diffusion of digital systems (Trabucchi and Buganza, 2020).

The on-line fashion apartment marketplace, which involves the supply of garments with a longer lifestyles whilst decreasing style intake, extended exponentially in many nations (Lee and Chow, 2020). It was valued at $1,013m in 2017 and became also anticipated to attain $1,856m via 2023 (+10.6% from 2017 to 2023) (Allied Market Research, 2019). Although the pandemic crisis will have impacted style rental in 2020 and 2021, from 2022 onwards it'll start to increase their sales, following the anticipated healing of the conventional apparel marketplace and the resilience that different sharing financial system markets have proven all through the pandemic (Statista, 2021a; ThredUp, 2020). When in comparison to the dimensions of the global garb marketplace (envisioned to develop in cost from US$1.5tn in 2020 to about US$2.25tn by using 2025) (Statista, 2021b), style condominium appears to signify a completely small, possibly beside the point, issue of the whole marketplace. However, in 2018, america garment rental market, representing less than 1% of the full garb marketplace (in keeping with GlobalData), grew 24% compared to 5% for the wider apparel marketplace (Reuters, 2019). Furthermore, in spite of its constrained size, style condo deserves attention mainly from a sustainability point of view, with regard to lowering waste and increasing the lifespan of clothes, by using contrasting overconsumption and the inexorable disposal of unwanted apparel (Zhang et al., 2020). In truth, it has come to be clean that the fashion enterprise, to thrive in a sustainable destiny, need to shift from the take-make-waste model through embracing round economic system concepts and style apartment could represent the key to a sustainable style enterprise (Braithwaite, 2018).

Notwithstanding the surge in recognition, the instructional literature on fashion rental (Lee and Chow, 2020; Clube and Tennant, 2020; Mukendi and Henninger, 2020; Lang et al., 2019; Lang and Armstrong, 2018; Adam et al., 2018; Pedersen and Netter, 2015) remains restricted, and even more so in phrases of developing our information of the role played with the aid of digital systems. This paper proposes to make a contribution to this underdeveloped place of educational studies, through exploring style condominium from a enterprise model attitude (Osterwalder and Pigneur, 2010; Zott et al., 2011; Chesbrough, 2010; Teece, 2010). In fact, previous instructional research have focussed especially on customers' motivations for participating in style rental structures (e.G. Clube and Tennant, 2020; Lee and Chow, 2020; Lang et al., 2020; 2019; Lang and Armstrong, 2018) and paid little attention to fashion condo from the store's viewpoint (Adam et al., 2018). The analysis might be focused on the BtoC style apartment platforms, characterised via a organization offering the platform and proudly owning the style objects available for hire (Iran and Schrader, 2017).

To the author's know-how, no previous examine has tested fashion condo commercial enterprise fashions from the entrepreneur/store's angle. This paper is the primary to make a contribution to bridging this hole, by adopting a multiple case take a look at (Yin, 1994, 2017) approach with a focus on Italy, a country with a long records related to style. Different textile and garb districts signify this lengthy culture in Italy (Guercini et al., 2014; Runfola and Guercini, 2013), and Italian customers are considered “luxurious connoisseurs” (Kauppinen-Räisänen et al., 2018; Amatulli and Guido, 2011) with a nicely stratified picture of luxurious and style (Godey et al., 2013; Kapferer and Michaut, 2016).

Therefore, the studies aims, first off, to explore the key features of style apartment business fashions and, secondly, to research the impact of virtual systems and digital technologies on their cost creation, price configuration and price capture. To deal with those studies goals, a qualitative studies layout the use of case research of 3 fashion condo organisations based totally in Italy (Eisenhardt and Graebner, 2007) became completed. The findings provide an unique contribution to studies on collaborative style consumption and virtual style apartment, which, so far, were researched to a constrained quantity but simplest from a purchaser angle. In evaluation, this paper examines style condo from the angle of the techniques employed by the apartment companies themselves. Moreover, the originality of the look at is in addition reinforced with the aid of the particular context of evaluation, specifically, the style industry in Italy.

2. Theoretical background

2.1 Business model

Despite tremendous academic literature focussed on business models (Magretta, 2002; Amit and Zott, 2001; Zott et al., 2011; Chesbrough, 2010; Teece, 2010; Foss and Saebi, 2017), the commercial enterprise model idea stays ill-described (George and Bock, 2011). Nevertheless, there was a convergence inside the key factors included in a business model (Wirtz et al., 2016). In its simplest information, a commercial enterprise model describes the design or structure of the cost advent, transport and seize mechanisms employed by means of a commercial enterprise corporation thru its assets and skills to obtain a competitive advantage and continue to exist within the long term (Teece, 2010). A commercial enterprise model develops in interaction with other actors (Mason and Spring, 2011) by using elucidating how a organisation is connected to outside stakeholders and engages in economic exchanges with them to create fee (Zott and Amit, 2007). Thus, it explains how a value proposition is configured, a target marketplace is identified and sales mechanisms are defined (Chesbrough and Rosenbloom, 2002). Digitalization has had an impact on business models (Amit and Zott, 2001), each in revolutionary and conventional sectors, that aren't generally characterized by using excessive investment in technology (Warner and Wager, 2019). One of the principle innovations added by using digitalization has been a lower reliance of business activities on physical elements (Caputo et al., 2021; Erevelles et al., 2016). In fact, rising business fashions are increasingly more based totally on digital infrastructures (Warner and Wager, 2019) and new kinds of organisation are growing as virtual structures that function a hub between shoppers and sellers within the exchange of products and offerings (Velu, 2015).

In this article, a enterprise version is taken into consideration as “the purpose of how an agency creates, grants and captures value” (Osterwalder and Pigneur, 2010, p. 14). According to Osterwalder and Pigneur (2010), the Business Model Canvas builds on nine components: customer cost proposition, segments, purchaser relationships, channels, key assets, key sports, companions, costs and revenues. They may be conceptualized as three fundamental factors: how these key additives create fee for clients (cost introduction); how sports and resources are prepared within the employer and for the duration of its supply chain and partners (fee configuration) and the way the company generates cost (cost seize) (Osterwalder et al., 2005; Bocken et al., 2014). More exactly, cost advent describes how customers gain from being served by way of the corporation (price propositions), the target customers (patron segments), and the way the enterprise establishes and develops relationships with them (purchaser relationships) (Osterwalder et al., 2005; Osterwalder and Pigneur, 2010). Value configuration defines how the business enterprise reaches its customers, for instance, thru bodily or online shops (channels), the important thing activities and assets used to deliver value to clients collectively with the companions in the cost chain. Finally, price capture refers to how revenues are generated (sales streams), once the costs associated with running the enterprise version (cost structure) have been identified through the years (Osterwalder and Pigneur, 2010). Especially style enterprise fashions show relevant time dependencies due to the fact that time may be considered an characteristic of fashion products in phrases of the way old or how “timely” the gadgets are (Guercini et al., 2014). Thus, time becomes a part of the fashion imparting and permits differentiation between long lifestyles cycle gadgets (or evergreen products) and brief existence cycle items (capable of spot tendencies quickly and attain the shops in the shortest possible time). Traditionally, clothing companies have been used to adopting a “deliberate fashion model” wherein the time factor changed into absolutely divided into four seasons (Autumn/Winter and Spring/Summer). This model turned into based totally on an capability to forecast and recommend fashion tendencies; however, over latest a long time, the fashion marketplace has come to be especially competitive and a regular want to “refresh” product levels by way of extending the number of “seasons” has arisen (Bhardwaj and Fairhurst, 2010). New business models have emerged, inclusive of fast fashion formulae, wherein time management is valuable (Cachon, 2020; Mustonen et al., 2013; Runfola and Guercini, 2013), and the importance of time to marketplace has increasingly impacted fashion enterprise fashions.

2.2 Collaborative fashion intake and fashion sharing fashions

Collaborative style consumption issues people sharing and taking part to fulfill particular needs (Camacho-Otero et al., 2019; Stål and Jansson, 2017; Pedersen and Netter, 2015). With the appearance of data era, collaborative fashion consumption bureaucracy have advanced from physical and nearby marketplaces to global on line communities with larger economic, environmental and social effects (Botsam and Rogers, 2010). In reality, digital structures connect people, organizations and sources and facilitate interaction among businesses and clients (Constantinides et al., 2018) which can be beneficial in creating and capturing cost (Parker et al., 2016), through having a disruptive impact in several markets (Trabucchi and Buganza, 2020). @ Read More greenitc1403  robotstechnologyies