Collaborative Consumption: Live Fashion, Don't Own It - Developing New Business Models for the Fashion Industry

40 Pages Posted: 27 Oct 2016

See all articles by Anna Perlacia

Anna Perlacia

Norwegian School of Economics (NHH)

Valeria Duml

Norwegian School of Economics (NHH)

Tina Saebi

Norwegian School of Economics (NHH) - Department of Strategy and Management

Date Written: October 27, 2016

Abstract

The rise of collaborative consumption or the sharing economy has brought forward new business models in many industries, such as in hotels (e.g. Airbnb), transportation (e.g. Uber), and more recently, in the fashion retail industry (e.g. Rent the Runway). While the exchange of fashion items commonly used to take place between private individuals, an increasing number of retailers have innovated their business models to provide a platform that facilitates renting or sharing of clothing items between consumers and/or the retailer. Little academic research exists however on how retailers can design their business models to create, deliver and capture value from this new form of collaborative consumption. Based on a sample of twenty-six fashion retailers (Europe, US) that engage in fashion-sharing, this paper analyses their different underlying business models and identifies three sharing business model archetypes (Fashion Rental Model, Swapping Model, and Second-hand Retailing Model). Interviews with CEOs of these companies provide further insight into the main motivations and challenges in adopting sharing-business model. In so doing, we offer retailing managers a practical framework to guide business model innovation for collaborative consumption, as well as advance academic research by bridging the literatures on business model innovation and collaborative consumption.

Keywords: business models, business model innovation, sharing economy, collaborative consumption, fashion retail, sharing models

Suggested Citation

Perlacia, Anna and Duml, Valeria and Saebi, Tina, Collaborative Consumption: Live Fashion, Don't Own It - Developing New Business Models for the Fashion Industry (October 27, 2016). Available at SSRN: https://ssrn.com/abstract=2860021 or http://dx.doi.org/10.2139/ssrn.2860021

Anna Perlacia

Norwegian School of Economics (NHH) ( email )

Helleveien 30
Bergen, NO-5045
Norway

Valeria Duml

Norwegian School of Economics (NHH) ( email )

Helleveien 30
Bergen, NO-5045
Norway

Tina Saebi (Contact Author)

Norwegian School of Economics (NHH) - Department of Strategy and Management ( email )

Helleveien 30
N-5045 Bergen
Norway

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