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Why Moda Operandi's Business Model is so successful?

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Moda Operandi’s Company Overview


Moda Operandi is a prestigious online luxury fashion retailer that allows customers to pre-order looks straight from the runway through online trunk shows. Founded in 2010 by Lauren Santo Domingo and Aslaug Magnusdottir, the company has revolutionized the luxury fashion industry by providing an innovative platform that connects designers with fashion enthusiasts worldwide. Moda Operandi offers an exclusive selection of women's and men's ready-to-wear, jewelry, accessories, and home decor from established designers and emerging talents. The company is headquartered in New York City, with offices in London and Hong Kong, and serves customers in over 125 countries.

Business Model:

Moda Operandi’s unique business model is centered around online trunk shows, which allow customers to pre-order next-season’s styles directly from designers. The company partners with over 700 designers to present their collections on its platform. Once a customer places an order, the designer produces the item, which is then shipped to Moda Operandi for quality control before being sent to the customer. This model enables customers to secure their desired items months before they are available in traditional retail stores, and gives designers a platform to showcase their full range of products, not just those selected by retail buyers.

Revenue Model:

Moda Operandi's revenue model is primarily based on a commission structure. When a customer pre-orders an item through a trunk show, they pay a 50% deposit, with the balance due when the item is ready to be shipped. The company earns revenue by taking a percentage of the sale price. This model allows Moda Operandi to significantly reduce inventory risk, as the items are produced based on confirmed orders. Additionally, the company also generates revenue through its boutique sales, where it sells in-season items directly to customers, and through advertising and partnerships with luxury brands.

https://www.modaoperandi.com/

Headquater: New York, New York, US

Foundations date: 2010

Company Type: Private

Sector: Consumer Goods

Category: eCommerce

Digital Maturity: Fashionista


Moda Operandi’s Related Competitors



Moda Operandi’s Business Model Canvas


Moda Operandi’s Key Partners
  • Fashion brands
  • Fashion designers
  • Affiliates
  • Payment processors
  • Investors
Moda Operandi’s Key Activities
  • Website maintenance
  • Product curation
  • Platform development
  • Product and customer support
  • Marketing
  • Social media
  • Traffic generation
  • Community management
  • Partnerships
  • Customer acquisition
  • Product updates
Moda Operandi’s Key Resources
  • Platform
  • Network
  • Community
  • Expertise
  • Personal Shoppers
  • Designers
  • Talent
  • Brand
  • Partnerships
  • Investors
  • Know-How
  • Staff
  • Offices
  • Legal agreements
  • Financials
  • Data
Moda Operandi’s Value Propositions
  • To be the only place to preorder looks straight from the unedited runway collections of the world's top designers—months before they are available anywhere else
  • The company is also the only online retailer to invite clients to an in-store shopping experience
  • It offers an expertly curated selection of in-season items from both established and emerging designers
  • Moda Operandi has established itself as a lifestyle brand that fully embraces fashion’s inherent luxury
  • The company provides a bespoke shopping experience for every customer
Moda Operandi’s Customer Relationships
  • To connect shoppers with the best designers and artisans in the world
  • Personalization
  • Luxury
  • Exclusivity
  • Online
  • Self-service
  • Community
  • Social shopping
  • Personal Stylists
  • Recommendations
  • Online Chats
  • Phone
  • Email
Moda Operandi’s Customer Segments
  • Women
  • Men
  • Designers
  • Retailers
  • Customers
Moda Operandi’s Channels
  • Online shop
  • App
  • Social networks
  • Blog
  • Magazine
Moda Operandi’s Cost Structure
  • Marketing
  • Advertising
  • Operations
  • Design
  • Development
  • Maintenance
  • Customer service
  • Logistics
  • Payment processing
Moda Operandi’s Revenue Streams
  • Commission on sales
  • E-commerce sales
  • Personal shopping and styling services
  • Trunkshows

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Moda Operandi’s Revenue Model


Moda Operandi makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • eCommerce
  • Reseller
  • Curated retail
  • Advertising
  • Affiliation
  • Fashion sense
  • Fast fashion
  • Online marketplace
  • Customer relationship
  • Digital
  • Ultimate luxury
  • Direct selling
  • Demand then made
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Moda Operandi’s Case Study


Moda Operandi's CASE STUDY

Moda Operandi may have its roots firmly planted in the fashion-forward soil of New York City, but its influence stretches across the globe, touching every fashionista's dream. In 2010, visionaries Lauren Santo Domingo and Aslaug Magnusdottir founded Moda Operandi to revolutionize how we shop and experience luxury fashion. But what makes Moda Operandi a unique paragon in the eCommerce sapphire?

The Story of the Innovative Fashion Platform

The daring concept behind Moda Operandi was simple yet innovative. They saw the delay between the dazzling runway shows and when customers could actually purchase the collections. They thought: “Why should enthusiasts wait months to get their hands on these designs?” Thus, the online trunk show was born, allowing customers to pre-order exclusive items right after they graced the runway. This democratized fashion, inviting every fashion devotee to indulge before the collections hit traditional retail stores. Imagine pre-ordering a Caroline Herrera gown or a sleek jacket from Alexander McQueen immediately after it debuts on the runway; that’s the Moda Operandi difference. This trailblazing approach provided designers with a robust platform to present their entire collections, transcending the narrow selections typically dictated by retail buyers.

Stepping into the eCommerce Arena

Moda Operandi’s business model is uniquely crafted around its online trunk shows. Fashion designers—over 700 partners spanning established names to rising stars—display their collections online. Customers can place a 50% deposit to secure the items they love, with the balance paid upon shipping. This not only satisfies an emotional and functional desire to own exclusive, high-quality items, but also reduces inventory risk significantly. Items are produced strictly based on confirmed orders, eliminating overstock woes. In addition to trunk shows, Moda Operandi features an expertly curated boutique offering in-season luxury items. This dual revenue model—pre-order trunk shows and direct boutique sales—coupled with strategic advertising partnerships, cements Moda Operandi as a vanguard in the fashion eCommerce space.

Numbers Speak Louder Than Words

Moda Operandi serves customers in over 125 countries, an impressive feat showcasing its extensive global reach and influence. Their unique business model, focusing on minimising risk and maximizing customer satisfaction, indicates a highly efficient operation. According to a Harvard Business Review study, companies that adopt a “demand then produce” model like Moda Operandi can reduce inventory holding costs by up to 20% (HBR, 2021). Also, it’s noteworthy that Moda Operandi’s innovations came at a time when the average online luxury shopper was willing to spend considerably more. Bain & Company’s Luxury Goods Worldwide Market Study reports that online sales of personal luxury goods reached 23% of the total market in 2022 (Bain & Company, 2022). Moda Operandi has undoubtedly been a part of this wave.

The Customer Experience: Beyond Just Shopping

What sets Moda Operandi apart isn’t just its business model; it’s the customer experience. Every interaction exudes luxury, from the personalized styling services to the meticulous care in which items are curated and shipped. Personal stylists work tirelessly to create a bespoke shopping experience. Vogue dubbed it "the place where you don't just buy clothes; you secure art.” Moda Operandi recognizes that their demographic—customers who value exclusivity, badge value, and top-notch quality—demand white-glove service. They have tapped into the emotional and social facets of luxury shopping, thereby reinforcing customer loyalty and satisfaction.

Expert Opinions: The Industry’s Take

Industry experts often comment on Moda Operandi’s stronghold in the luxury fashion market. Fashion business analyst, Lauren Sherman from Business of Fashion, emphasizes, "Moda Operandi has managed to carve a niche by being first to market with runway pieces. Their trunk show model is a revelation in inventory management and customer engagement." Furthermore, Harvard Business School's Anita Elberse has pointed out that "Moda Operandi's approach allows them to offer a wider range of products from top designers, directly correlating with higher customer satisfaction and lower return rates."

Conclusion: The Moda Operandi Legacy

Moda Operandi stands as a testament to what happens when visionary thinking meets impeccable execution. From revolutionizing the pre-order landscape with their online trunk shows to addressing customer needs with painstaking detail, they have unraveled a new era in luxury fashion retail. Our journey through this case study of Moda Operandi not only underscores their innovative business model but also highlights their unyielding commitment to delivering exclusivity and quality. As we gaze into the future of eCommerce, it is clear that Moda Operandi’s blend of technological savviness and fashion-forward thinking will keep them at the pinnacle of luxury retail. Sources: - Harvard Business Review, 2021 - Bain & Company, Luxury Goods Worldwide Market Study, 2022 - Vogue Magazine - Business of Fashion - Harvard Business School


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