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Fashion Business Models
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Flashcards
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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.
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.
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.
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.
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.
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.
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.
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