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Why Away's Business Model is so successful?

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Away’s Company Overview


Away is a pioneering travel and lifestyle brand based in New York City that is renowned for its innovative and thoughtfully designed luggage. The company was founded in 2015 by Stephanie Korey and Jennifer Rubio with the mission to transform the travel experience. Away's products are designed for the modern traveler and include a range of suitcases, bags, and travel accessories, all of which are sold directly to consumers through their online platforms and select retail stores. Away's suitcases are particularly popular for their durability, design, and built-in USB chargers. The company is known for its customer-centric approach, offering lifetime warranties and a 100-day trial on its products. Business Model: Away operates on a direct-to-consumer business model, bypassing traditional retail channels to sell its products directly to customers primarily through its online platform. This model allows the company to maintain control over its brand, customer experience, and pricing. Away also utilizes a limited number of physical retail stores in key markets to provide customers with a tactile shopping experience. The brand heavily invests in storytelling and content marketing, aiming to inspire and connect with its customers on a deeper level. Away's business model is also characterized by its focus on product innovation, regularly releasing new products and limited-edition collections to keep its offering fresh and appealing. Revenue Model: Away's main source of revenue comes from the sale of its products, which include suitcases, bags, travel accessories, and interior organizers. The company operates on a high-margin business model, thanks to its direct-to-consumer approach, which eliminates the costs associated with traditional retail distribution. Away also generates revenue from its physical retail stores in major cities worldwide. Additionally, the company has explored other revenue streams, such as collaborations with different brands and influencers, which not only bring in direct revenue but also help to increase brand visibility and customer engagement.

https://www.awaytravel.com/en-uk

Country: New York

Foundations date: 2015

Type: Private

Sector: Consumer Goods

Categories: Travel


Away’s Customer Needs


Social impact:

Life changing: heirloom, affiliation/belonging

Emotional: design/aesthetics, badge value, provides access

Functional: quality, variety, informs


Away’s Related Competitors



Away’s Business Operations


Curated retail:

Curated retail guarantees focused shopping and product relevance; it presents a consumer with the most appropriate options based on past purchases, interactions, and established preferences. It may be provided via human guidance, algorithmic recommendations, or a combination of the two.

Direct selling:

Direct selling refers to a situation in which a company's goods are immediately accessible from the manufacturer or service provider rather than via intermediate channels. The business avoids the retail margin and any extra expenses connected with the intermediaries in this manner. These savings may be passed on to the client, establishing a consistent sales experience. Furthermore, such intimate touch may help to strengthen client connections. Finally, direct selling benefits consumers by providing convenience and service, such as personal demonstrations and explanations of goods, home delivery, and substantial satisfaction guarantees.

Disintermediation:

Keeping the purchase price low by avoiding mediators and maximizing supply margins is a win-win situation. In finance, disintermediation refers to how money is removed from intermediate financial organizations such as banks and savings and loan associations and invested directly. Disintermediation, in general, refers to the process of eliminating the middleman or intermediary from future transactions. Disintermediation is often used to invest in higher-yielding securities.

eCommerce:

Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

Experience selling:

An experience in the sales model describes how a typical user perceives or comprehends a system's operation. A product or service's value is enhanced when an extra customer experience is included. Visual representations of experience models are abstract diagrams or metaphors derived from recognizable objects, actions, or systems. User interfaces use a range of experience models to help users rapidly comprehend what is occurring in the design, where they are, and what they may do next. For example, a software experience model may depict the connection between two applications and the relationship between an application and different navigation methods and other system or software components.

Ingredient branding:

Ingredient branding is a kind of marketing in which a component or ingredient of a product or service is elevated to prominence and given its own identity. It is the process of developing a brand for an element or component of a product in order to communicate the ingredient's superior quality or performance. For example, everybody is aware of the now-famous Intel Inside and its subsequent success.

Niche retail:

A marketing strategy for a product or service includes characteristics that appeal to a particular minority market segment. A typical niche product will be distinguishable from other goods and manufactured and sold for specialized purposes within its associated niche market. Niche retail has focused on direct-to-consumer and direct-to-business internet sales channels. The slogan for niche retail is Everything except the brand.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

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