Business model innovation in the fashion industry
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Business model innovation in the fashion industry

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Master dissertation defense to obtain the degree of Master of Applied Economic Sciences – Business Administration at the University of Antwerp

Master dissertation defense to obtain the degree of Master of Applied Economic Sciences – Business Administration at the University of Antwerp

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Business model innovation in the fashion industry Business model innovation in the fashion industry Presentation Transcript

  • Business Model Innovation in the Fashion Industry Eva Willemen Master dissertation defense to obtain the degree of Master of Applied Economic Sciences – Business Administration 1
  • Table of contents•  Introduction•  Research questions•  Modus operandi•  Desk research -  Business model innovation -  Trends/challenges in the (Belgian) fashion industry•  In-depth research•  Conclusion•  Discussion 2
  • Introduction(headlines in the Belgian media) 3
  • Research questions•  Does business model innovation occur in the fashion industry? -  Subquestion: ‘Which types of business model innovation?’•  Can BMI propose a solution for the challenges of the Belgian fashion industry? 4
  • Modus Operandi•  Qualitative research -  Own qualitative research + interviews with industry experts -  Best-practice examples of business model innovation•  Sources of inspiration: -  The Business of Fashion -  FashionUnited•  Why this is the most adequate way to research this topic: Innovation is a phenomenon in the present and the future. It cannot be found in bulky textbooks. 5
  • Modus Operandi (2)Goal•  NOT to dictate what are the best/most innovative business models! -  Individual cases -  Environment changes very fast•  BUT to demonstrate the different ways in which the fashion industry can accomplish business model innovation•  AND provide insights and inspiration to companies that consider BMI 6
  • Business model innovationBusiness modelRepresentation or blueprint of a businessTransaction of value/money between company and customer > ‘HOW’Business model innovatieRestructuring of activities and competences to offer customer value that breaks with the industry recipeBusiness model canvasVisual representation of a business model (Alexander Osterwalder)9 building blocks 7
  • What do you How do you do? keep in touch withWho are customers? Who are youryour What do you customers?partners? offer? What do you How do you need? reach you customers? What are Where do your your most receivings come important from? costs? Bron: BMC workshop, Flanders DC 8
  • What do you How do you How can you How can you keep in touch do? more out get improve contact with your withWho are of your Who are your How do you What do you customers? customers? Who canyour activities? customers? benefit from How can you become yourpartners? offer? a make your customers? partnerships? difference? What do you How can you How do you need? your optimise How do your reach you want customers use of customers? resources? to be reached? What are Where do your What do your your mostyou How can receivings come lower your clients want to pay important from? for? costs? costs? Bron: BMC workshop, Flanders DC 9
  • 4 types of BMI What do you How do you How can you How can you keep in touch do? more out get improve contact with your with Who are of your Who are your How do you What do you customers? customers? Who can your activities? customers? benefit from How can you become your partners? offer? a make your customers? partnerships? difference? What do you How can you How do you need? your optimise How do your reach you want use of Offer- customers customers? to be reached? resources? drivenResources-driven Customer-driven What are Where do your What do your your mostyou How can receivings come lower your clients want to pay important from? for? costs? costs? Finance-driven Bron: BMC workshop, Flanders DC 10
  • Trends in the fashion industry•  Cheap labour vs. brand value•  The internet changes the game•  Prosumers (the consumer as a producer)•  Media and retail meet in the middle•  Fast fashion, shorter collection cycli•  Technological innovation of fabrics•  High-end meets low-end fashion•  Market polarisation•  Renewed focus on menswear•  New growth markets•  Hyperpersonalisation (Raf Simons) 11
  • Cases: BMI in the fashion industry Curated fashion Africa Wearables = newFast fashion Customer market Sustainable integration fashion E-commerce S-commerceCrowdfunding Outlet sites Pre-tail (Based on the Business Model Canvas, Alexander Osterwalder) 12
  • Conclusion (1)BMI in the fashion industry?Types of BMI?TREND: Business model more and more customer-focused! Prof. Marion Debruyne: “It is important to look at the BM canvas from the right side to the left side. One should be able to answer the market needs and extend this to ones activities, partners,..” The strong competition in the fashion sector and the economic crisis stimulate the customer-centered business model. Only the most market-oriented players survive. 13
  • Conclusion (2)BMI = solution to Belgian fashion industry?•  The fashion sector is in turmoil -  3 BMI drivers are present (Seizing the white space, M. Johnson) •  Radical changes •  Transformation of the existing market •  New markets•  Innovation is a necessity Prof. Marion Debruyne: “One should constantly adapt to the changing environment and be sufficiently innovative. The Belgian ‘problem’ is too much focus on the product and losing track of the rest of the business model.”•  Only possible solution? -  Processoptimisation & great product = base -  Competing with huge production in China, Bangladesh = impossible THUS reposition competences > compete based on innovation 14
  • Conclusion (3)Some remarks•  DO NOT innovate for innovations sake -  Is the opportunity big enough to justify the expenses? -  Is the BM truly novel to the company and the market? -  Not every business model works for every company. Pick your battles! THUS verify best practices for individual relevance.•  Obstacles -  Lack of management thinking, especially with the designers -  Product focus (tunnel vision) -  Practical arguments -  Praktische argumentations: ‘lack of resources’, ‘lack of time or attention’, ‘too hard’ -  Difficult economic situation: investing in the future often comes in second place 15
  • Conclusion (4)Little evidence of BMI in the Belgian fashion industryBUT.. -  Vente-exclusive (online outlet website) -  JBC and Walter van Beirendonck (designer collaboration) -  Essentiel (e-commerce) -  Bruno Pieters (new sustainable, transparant fashion label ‘Honest By’) -  FashionAngel (crowdfunding) “The only way to survival is based on our creative and innovative power.” (Herman Van de Velde, 2012) 16
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