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Why Outfittery's Business Model is so successful?

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Outfittery’s Company Overview


Outfittery is a Berlin-based men's fashion e-commerce company that offers a unique and personalized shopping experience. Founded in 2012, the company leverages artificial intelligence and data-driven insights to provide curated fashion boxes tailored to the individual style preferences, sizes, and budgets of its customers. Outfittery's mission is to make shopping effortless for men by offering a convenient, time-saving solution that eliminates the need for browsing through countless clothing options. The company collaborates with over 100 high-quality brands, ensuring a wide variety of styles to choose from. Outfittery operates in eight European markets including Germany, Austria, Switzerland, the Netherlands, Belgium, Luxembourg, Sweden, and Denmark. Outfittery's business model is centered around a personalized subscription service. Customers begin by filling out a style questionnaire and are then paired with a personal stylist who handpicks items based on the customer's preferences. The selected items are shipped directly to the customer's door, where they have the freedom to try on the clothes and only pay for what they decide to keep, with free returns for unwanted items. The revenue model of Outfittery is primarily based on the sales of the clothes. The personal styling service is offered free of charge, encouraging customers to focus their spending on the products themselves. The company also benefits from the strong relationships it maintains with its brand partners, often acquiring items at wholesale prices and selling at retail prices. Outfittery's unique approach to e-commerce and emphasis on customer experience has allowed it to establish a strong presence in the men's fashion industry.

https://www.outfittery.com/

Country: Berlin

Foundations date: 2012

Type: Private

Sector: Consumer Services

Categories: eCommerce


Outfittery’s Customer Needs


Social impact:

Life changing: affiliation/belonging, motivation

Emotional: design/aesthetics, provides access, attractiveness

Functional: saves time, simplifies, reduces effort, quality, variety


Outfittery’s Related Competitors



Outfittery’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.

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 transformation:

Digitalization is the systematic and accelerated transformation of company operations, processes, skills, and models to fully exploit the changes and possibilities brought about by digital technology and its effect on society. Digital transformation is a journey with many interconnected intermediate objectives, with the ultimate aim of continuous enhancement of processes, divisions, and the business ecosystem in a hyperconnected age. Therefore, establishing the appropriate bridges for the trip is critical to success.

Codifying a distinctive service capability:

Since their inception, information technology systems have aided in automating corporate operations, increasing productivity, and maximizing efficiency. Now, businesses can take their perfected processes, standardize them, and sell them to other parties. In today's corporate environment, innovation is critical for survival.

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.

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.

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.

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.

Subscription:

Subscription business models are built on the concept of providing a product or service in exchange for recurring subscription income on a monthly or annual basis. As a result, they place a higher premium on client retention than on customer acquisition. Subscription business models, in essence, concentrate on revenue generation in such a manner that a single client makes repeated payments for extended access to a product or service. Cable television, internet providers, software suppliers, websites (e.g., blogs), business solutions providers, and financial services companies utilize this approach, as do conventional newspapers, periodicals, and academic publications.

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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