|sowmya||Nov-7th , 2019||0 comments|
“Fashion as a Service” is the new game changer in the fashion industry, and it definitely makes sense! The “as a service” (-aaS) model has been evolving in virtually every domain and it is no surprise that the fashion industry is moving on to it as well.
In this blog, we will see what Fashion as a Serviceis exactly. We will explore the logic behind it and the future ahead of it, and also discuss how a good fashion and apparel retail software can help you capitalize on this trend.
Fashion as a Service - Why It Makes Sense
The –aaS revolution has expanded to include anything that can be delivered on a subscription basis or something that doesn’t transfer complete ownership. With this context, Fashion as a Service has come to include two main models – subscription and renting. Let’s see why this trend is catching on fast.
The Experience Economy spearheaded by Millennials who value experiences over products is one reason why the Fashion as a Service model has caught on. A study by Harris Group found that 78 percent of millennials prefer to spend money on a desirable experienceor event over buying something desirable. This has led to the trend of NOwnership where access and experience is valued over ownership. Now how does this affect fashion retail? It means that people are less eager to spend money on owning expensive designer clothes and apparel.
Another reason for the rise of these models is the importance consumers place on ease of access and convenience. A Nielsen study found that 46% of consumers view shopping as a chore. Shopping is definitely not what it used to be.
However, there is an opportunity here and many businesses are flourishing based on it. Although consumers do not want to spend money buying expensive clothes, they still want to be seen in them.They also want faster and more convenient shopping options. This opens upthe opportunity for business models like subscription and rent.
New Business Models - Subscription and Rent
These models respond to the consumers’ need for access and freshness. Let’s look at each of them:
Rent:Though consumers do not want to splurge on expensive clothes just for a specific occasion, a McKinsey consumer survey shows that they are driven by a quest for social media likes. This creates a need to be photographed in different clothes, preferably designer. The Rental business model provides a perfect solution to this. Examples of businesses based on this model in India are The Clothing Rental and Flyrobe.
Subscription: This model works on the premise that consumers cherish one-of-a-kind products and convenience. They value the experience of receiving a custom box of fashion products every month and choosing what to keep. Consumers value the convenience factors offered like automated purchasing and the ability to limit store trips. Sugar Box, Style Cracker, Krate and other subscription boxes are gaining popularity in India.
How Can You Capitalize on Fashion as a Service Trend?
How does all this apply to you if you are a mainstream fashion retailer?Many global mainstream retailers like Nordstrom are trying to integrate these trends with their business by offering services like Black Tux tuxedo rentals and onsite alterations along with subscription models like their Trunk Club and personal stylists.
A good fashion and apparel retail software like RetailbeanLite can help you get a head start on this. By offering features like bespoke tailoring with custom measurements on cloud and cloud inventory management, this fashion and apparel retail software can help you offer personalized styling options and onsite alterations. As a next step, you can consider a subscription model or a rental model, based on your consumers’ preferences. Either way, don’t wait to get started! The time is NOW.
Image courtesy - https://www.wsj.com/articles/rent-the-runway-is-growing-fast-and-struggling-to-keep-up-11563890548