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Why LimeRoad's Business Model is so successful?

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LimeRoad’s Company Overview


LimeRoad is a revolutionary online platform specializing in fashion and lifestyle products for women, men, and kids. Founded in 2012 and headquartered in Gurgaon, India, the company aims to democratize fashion in India through its extensive range of high-quality, trendy, and affordable products. LimeRoad offers a unique online shopping experience with its social shopping platform, where users can create and share their own looks and collections, inspiring others in the community. The company has a vast network of more than 10,000 sellers from all over India, bringing the diversity and richness of Indian fashion to the forefront. LimeRoad's business model is primarily based on the e-commerce marketplace model. The platform acts as an intermediary between buyers and sellers, facilitating transactions of fashion and lifestyle products. Sellers list their products on LimeRoad, and the company earns a commission on each sale made through the platform. This model allows LimeRoad to offer a wide variety of products without the need to hold inventory or manage logistics. The company's revenue model combines commissions, advertising, and premium services. The primary source of revenue comes from the commission it charges sellers for each transaction. Additionally, LimeRoad offers advertising opportunities to sellers who wish to promote their products on the platform, creating another revenue stream. Finally, the company also has premium services for sellers, such as premium listing spots and additional marketing support, contributing to its revenue.

https://www.limeroad.com/

Country: Haryana

Foundations date: 2012

Type: Private

Sector: Consumer Services

Categories: eCommerce


LimeRoad’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: design/aesthetics, provides access, attractiveness

Functional: connects, quality, variety, informs


LimeRoad’s Related Competitors



LimeRoad’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.

Advertising:

This approach generated money by sending promotional marketing messages from other businesses to customers. When you establish a for-profit company, one of the most critical aspects of your strategy is determining how to generate income. Many companies sell either products or services or a mix of the two. However, advertisers are frequently the source of the majority of all of the revenue for online businesses and media organizations. This is referred to as an ad-based income model.

Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.

Digital:

A digital strategy is a strategic management and a business reaction or solution to a digital issue, which is often best handled as part of a broader company plan. A digital strategy is frequently defined by the application of new technologies to existing business activities and a focus on enabling new digital skills for their company (such as those formed by the Information Age and frequently as a result of advances in digital technologies such as computers, data, telecommunication services, and the World wide web, to name a few).

Transaction facilitator:

The business acts as an acquirer, processing payments on behalf of online merchants, auction sites, and other commercial users for a fee. This encompasses all elements of purchasing, selling, and exchanging currencies at current or predetermined exchange rates. By far the biggest market in the world in terms of trade volume. The largest multinational banks are the leading players in this industry. Around the globe, financial hubs serve as anchors for trade between a diverse range of various kinds of buyers and sellers 24 hours a day, save on weekends.

Fashion sense:

In any customized sense of style, the golden guideline is to buy garments that fit correctly. Nothing ruins an ensemble more than an ill-fitting jacket, shirt, or trouser, regardless of the dress code or the cost of the clothing. Personal Values Sharing as a Brand Identity A significant component of developing a company that fits your lifestyle is growing a business grounded in your beliefs.

Fast fashion:

Fast fashion is a phrase fashion retailers use to describe how designs travel rapidly from the catwalk to catch current fashion trends. The emphasis is on optimizing specific supply chain components to enable these trends to be developed and produced quickly and affordably, allowing the mainstream customer to purchase current apparel designs at a reduced price.

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.

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.

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