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Fashion Business Models
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Flashcards
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Fast Fashion
A model characterized by rapid production of high volumes of clothing, which copies fashion trends and styles from high-end brands. Designed to be affordable and accessible, leading to a quick turnover in collections.
Luxury Brand
This business model focuses on delivering high-quality, exclusive products often with heritage and brand prestige. They maintain high price points to ensure a sense of exclusivity.
Direct to Consumer (DTC)
A model where brands sell directly to their consumers, often through online platforms, bypassing traditional retail intermediaries and allowing for better margins and customer relationship management.
Subscription Model
Customers pay a recurring price at regular intervals to get products. In fashion, this allows users to periodically receive a curated selection of clothing or accessories.
Private Label
Retailers create their own brand and products to sell exclusively in their stores. This model often provides higher margins than selling third-party brands.
Made-to-Order
Products are only manufactured after a customer has placed an order, reducing inventory risk and waste. This model supports customization and personalization.
Haute Couture
A model of creating exclusive custom-fitted clothing. It involves high-quality, expensive textiles and extreme attention to detail by seasoned artisans.
Mass Customization
Combines the flexibility and personalization of custom-made products with the low unit costs of mass production. Often, customers can personalize certain aspects of the product.
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