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Digital systems in style rental: a enterprise version analysis
Article publication date: 26 March 2021
Issue book date: 1 March 2022
Abstract
Purpose
The cause of this paper is to discover the key capabilities
of style apartment from a business version angle with a focus at the function
played by means of digital systems.
Design/method/technique
A qualitative research layout became used based totally on
more than one case studies of 3 Italian fashion rental companies.
Findings
The findings monitor the important thing elements
characterizing fashion condominium commercial enterprise models and the
centrality of virtual platforms in cost introduction, configuration and capture
sports. The observe also located that style condominium structures are in all
likelihood to showcase further a success improvement within the destiny.
Originality/value
The academic literature on fashion condominium has been in
particular focussed on inspecting purchasers' motivations and concerns, paying
little attention to the company's perspective. To date, no preceding observe
has tested style apartment commercial enterprise models from the store's angle.
This paper is the primary to explore the important thing components of fashion
apartment enterprise models and the way virtual systems have an impact on them
from the angle of retailers. The originality of the take a look at is in
addition reinforced by means of the specific context of evaluation, namely,
Italy, a main u . S . For global fashion.
Keywords
Citation
Arrigo, E. (2022), "Digital structures in fashion
rental: a commercial enterprise version evaluation", Journal of Fashion Selling
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 with the aid of Emerald Publishing Limited. This
article is posted beneath the Creative Commons Attribution (CC BY four.Zero)
licence. Anyone may additionally reproduce, distribute, translate and create
spinoff works of this article (for each business and non-commercial functions),
problem to complete attribution to the unique book and playwrights. The full relationships
of this licence may be seen at http://creativecommons.Org/licences/with the aid
of/four.0/legalcode
1. Introduction
Recent macro-traits, together with those of collaborative
intake (Botsman and Rogers, 2010; Möhlmann, 2015) and the sharing economy
(Belk, 2014), have leveraged virtual technologies to deliver ahead new enterprise
models (Zott et al., 2011; Chesbrough, 2010; Teece, 2010) in lots of
industries, which includes hospitality (e.G. Airbnb), transportation (e.G.
ZipCar) and, more lately, style (e.G. Rent the Runway). In the style retail
industry, examples of entrepreneurial projects that adapt the idea of sharing
and collaborative consumption to the fashion context, by way of providing garb
and comfort reselling, renting or swapping, have raised swiftly before the
emergence of coronavirus ailment 2019 (COVID-19) (Adam et al., 2018; ThredUp,
2020), because of the diffusion of virtual structures (Trabucchi and Buganza,
2020).
The on-line fashion condominium market, which includes the
availability of garments with a longer lifestyles even as lowering fashion
intake, expanded exponentially in many countries (Lee and Chow, 2020). It was
valued at $1,013m in 2017 and changed into additionally anticipated to attain
$1,856m by 2023 (+10.6% from 2017 to 2023) (Allied Market Research, 2019).
Although the pandemic crisis may have impacted style condominium in 2020 and
2021, from 2022 onwards it's going to begin to increase their sales, following
the anticipated recuperation of the traditional clothing marketplace and the
resilience that different sharing financial system markets have shown at some
point of the pandemic (Statista, 2021a; ThredUp, 2020). When as compared to the
dimensions of the worldwide clothing market (anticipated to grow in cost from
US$1.5tn in 2020 to about US$2.25tn by means of 2025) (Statista, 2021b),
fashion condominium appears to symbolize a completely small, perhaps
irrelevant, aspect of the complete market. However, in 2018, the US garment
rental market, representing much less than 1% of the entire garb marketplace
(in keeping with GlobalData), grew 24% in comparison to five% for the broader
apparel market (Reuters, 2019). Furthermore, in spite of its confined size,
style rental merits attention particularly from a sustainability factor of
view, in regards to decreasing waste and increasing the lifespan of garments,
via contrasting overconsumption and the inexorable disposal of undesirable
apparel (Zhang et al., 2020). In reality, it has turn out to be clear that the
fashion industry, to thrive in a sustainable future, have to shift from the
take-make-waste version with the aid of embracing round economic system ideas
and style rental could constitute the important thing to a sustainable style
enterprise (Braithwaite, 2018).
Notwithstanding the surge in popularity, the academic
literature on style condo (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 extra so in terms
of growing our knowledge of the role performed via virtual structures. This
paper intends to make a contribution to this underdeveloped place of
educational studies, with the aid of exploring fashion rental from a enterprise
model attitude (Osterwalder and Pigneur, 2010; Zott et al., 2011; Chesbrough, 2010;
Teece, 2010). In reality, preceding educational studies have focussed
specifically on customers' motivations for participating in fashion condo
structures (e.G. Clube and Tennant, 2020; Lee and Chow, 2020; Lang et al.,
2020; 2019; Lang and Armstrong, 2018) and paid little interest to style
condominium from the store's perspective (Adam et al., 2018). The analysis
might be focused on the BtoC style rental platforms, characterised with the aid
of a corporation presenting the platform and proudly owning the style objects
to be had for lease (Iran and Schrader, 2017).
To the author's expertise, no preceding observe has examined
fashion condominium business models from the entrepreneur/retailer's
perspective. This paper is the primary to make contributions to bridging this
gap, with the aid of adopting a a couple of case have a look at (Yin, 1994,
2017) method with a focus on Italy, a rustic with a protracted records related
to style. Different fabric and garb districts represent this lengthy culture in
Italy (Guercini et al., 2014; Runfola and Guercini, 2013), and Italian
customers are taken into consideration “luxurious connoisseurs”
(Kauppinen-Räisänen et al., 2018; Amatulli and Guido, 2011) with a well
stratified photo of luxury and fashion (Godey et al., 2013; Kapferer and
Michaut, 2016).
Therefore, the research targets, firstly, to explore the
important thing features of favor rental commercial enterprise fashions and,
secondly, to analyze the impact of digital structures and digital technology on
their value creation, value configuration and value seize. To cope with these
research targets, a qualitative studies layout using case studies of three
fashion condo firms based in Italy (Eisenhardt and Graebner, 2007) became
completed. The findings provide an authentic contribution to research on
collaborative style intake and digital style apartment, which, thus far, were
researched to a restricted volume however simplest from a customer perspective.
In contrast, this paper examines fashion condominium from the attitude of the
techniques hired with the aid of the apartment companies themselves. Moreover,
the originality of the examine is similarly reinforced via the unique context
of evaluation, namely, the fashion industry in Italy.
2. Theoretical history
2.1 Business version
Despite massive academic literature focussed on enterprise
fashions (Magretta, 2002; Amit and Zott, 2001; Zott et al., 2011; Chesbrough,
2010; Teece, 2010; Foss and Saebi, 2017), the business model concept remains
unwell-described (George and Bock, 2011). Nevertheless, there has been a
convergence in the key elements covered in a business version (Wirtz et al.,
2016). In its most effective knowledge, a commercial enterprise version
describes the layout or structure of the cost introduction, delivery and seize
mechanisms employed via a business business enterprise through its resources
and skills to gain a competitive benefit and live to tell the tale in the long
time (Teece, 2010). A business model develops in interplay with other actors (Mason
and Spring, 2011) through elucidating how a enterprise is connected to outside
stakeholders and engages in financial exchanges with them to create cost (Zott
and Amit, 2007). Thus, it explains how a value proposition is configured, a
target market is diagnosed and revenue mechanisms are described (Chesbrough and
Rosenbloom, 2002). Digitalization has had an effect on commercial enterprise
fashions (Amit and Zott, 2001), both in progressive and conventional sectors,
that are not commonly characterized by excessive investment in technology
(Warner and Wager, 2019). One of the primary improvements brought via
digitalization has been a lower reliance of enterprise activities on physical
elements (Caputo et al., 2021; Erevelles et al., 2016). In reality, rising
commercial enterprise models are more and more based on digital infrastructures
(Warner and Wager, 2019) and new forms of organization are growing as digital
structures that function a hub among consumers and sellers inside the alternate
of goods and services (Velu, 2015).
In this text, a business version is taken into consideration
as “the purpose of ways an corporation creates, supplies and captures value”
(Osterwalder and Pigneur, 2010, p. 14). According to Osterwalder and Pigneur
(2010), the Business Model Canvas builds on nine components: consumer value
proposition, segments, consumer relationships, channels, key resources, key
activities, companions, expenses and sales. They can be conceptualized as 3
primary elements: how these key additives create fee for customers (fee
advent); how sports and assets are prepared in the company and throughout its
supply chain and partners (price configuration) and the way the organisation
generates cost (cost capture) (Osterwalder et al., 2005; Bocken et al., 2014).
More precisely, price creation describes how clients advantage from being
served by means of the agency (price propositions), the target customers
(consumer segments), and the way the business enterprise establishes and
develops relationships with them (consumer relationships) (Osterwalder et al.,
2005; Osterwalder and Pigneur, 2010). Value configuration defines how the
corporation reaches its customers, for example, thru bodily or online stores
(channels), the key activities and assets used to supply cost to customers
together with the companions within the fee chain. Finally, price seize refers
to how revenues are generated (revenue streams), once the expenses associated
with walking the commercial enterprise version (cost structure) were identified
over time (Osterwalder and Pigneur, 2010). Especially style business fashions
show relevant time dependencies since time may be taken into consideration an
characteristic of fashion merchandise in phrases of the way old or how “well
timed” the items are (Guercini et al., 2014). Thus, time will become part of
the style supplying and allows differentiation among long existence cycle
objects (or evergreen merchandise) and brief existence cycle items (capable of
spot trends fast and attain the shops inside the shortest possible time).
Traditionally, apparel corporations were used to adopting a “deliberate fashion
version” in which the time component became surely divided into 4 seasons
(Autumn/Winter and Spring/Summer). This version became based totally on an potential
to forecast and advise style trends; however, over latest decades, the style
market has become fantastically competitive and a constant want to “refresh”
product levels by way of extending the variety of “seasons” has arisen
(Bhardwaj and Fairhurst, 2010). New business fashions have emerged, including
rapid fashion formulae, where time control is crucial (Cachon, 2020; Mustonen
et al., 2013; Runfola and Guercini, 2013), and the significance of time to
market has more and more impacted style commercial enterprise fashions.