Fishy business models in the fashion industry. (by @nickdemey @boardofinno)

•

19 likes•6,111 views

Outlet stores offer lower prices on luxury brands but there is a catch. While they claim to sell overstock and past season items, the products are often specially produced with lower quality materials just for outlets. This allows brands to trick customers into thinking they are getting a good deal while still making huge profits from outlet sales that account for 40-50% of annual revenue. Customers need to be aware of this practice and not assume outlet items are exactly the same as those sold at regular prices through other channels.

Many people just love luxury clothing
... ...

cc theamarand

But, brands like these are expensive!
... ...

and that’s a problem...

So some people will go

Fake
= Low quality
= cheap!

You get what you pay for...

But there is another option!

Solution 2
Outlet Store
s!

Original brands, no fakes! = High quality

Solution 2
Outlet Store
s!

Original brands, no fakes! = High quality
After season, overstocks,... = it’s cheap!

But there is something fishy going on...

ﬂickr cc ﬂea_ef

Polo via Polo via
Normal retailer Outlet

=
The same but ‘overstock’ product?

Polo via Polo via
Normal retailer Outlet

=
250gr. weight Polo 200gr.

less fabric = less quality =

You get what you pay for?

This is not ‘overstock’ but
official low quality production.

Solution 2
Outlet Store
s!

but low
Original brands, no fakes! = High quality
After season, overstocks,... = it’s cheap!
special production less expensive

It’s by tricking people that brands
make huge piles of money.

... ...

It’s by tricking people that fashion brands
make huge piles of money.

... ...

Annual Revenue

Regular Outlet
45% Outlet stores account for 40-50%
55% share in annual revenue already!

So don’t be fooled when buying
via (online) outlet channels.

Want more insight in
Black Business Models?

Tickets & info via
blackbusinessmodels.com

By Board of Innovation, international office for business model innovation
- helping companies find new and better revenue streams -

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Fishy business models in the fashion industry. (by @nickdemey @boardofinno)

1. Text ﬂickr cc ﬂea_ef

2. Many people just love luxury clothing ... ... cc theamarand

3. But, brands like these are expensive! ... ... and that’s a problem...

4. So some people will go Fake = Low quality = cheap!

5. You get what you pay for... But there is another option!

6. Solution 2 Outlet Store s!

7. Solution 2 Outlet Store s! Original brands, no fakes! = High quality

8. Solution 2 Outlet Store s! Original brands, no fakes! = High quality After season, overstocks,... = it’s cheap!

9. But there is something fishy going on... ﬂickr cc ﬂea_ef

10. Polo via Polo via Normal retailer Outlet = The same but ‘overstock’ product?

11. Polo via Polo via Normal retailer Outlet = 250gr. weight Polo 200gr. less fabric = less quality =

12. You get what you pay for? This is not ‘overstock’ but official low quality production.

13. Solution 2 Outlet Store s! but low Original brands, no fakes! = High quality After season, overstocks,... = it’s cheap! special production less expensive

14. It’s by tricking people that brands make huge piles of money. ... ...

15. It’s by tricking people that fashion brands make huge piles of money. ... ... Annual Revenue Regular Outlet 45% Outlet stores account for 40-50% 55% share in annual revenue already!

16. So don’t be fooled when buying via (online) outlet channels. Want more insight in Black Business Models?

17. Tickets & info via blackbusinessmodels.com By Board of Innovation, international office for business model innovation - helping companies find new and better revenue streams -

Fishy business models in the fashion industry. (by @nickdemey @boardofinno)

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