Monetizing Fashion as a Service

In a fiercely competitive market burdened by decreasing customer loyalty, companies are searching for new ways to retain customers for the long term. With this objective in mind, adjusting revenue models offers numerous opportunities to engage customers on a monthly basis thus generating more stable and recurring revenues. Two revenue models are particularly appropriate for creating a higher customer lifetime – subscription and rental models.

Subscriptions and rentals are effective methods to keep customers consistently engaged. In the past, subscription models were limited to magazines and newspapers, but nowadays, the average household in Europe spends more than €130 per month on subscriptions. The usual suspects, e.g. Netflix and Spotify, still account for the largest portion; however, subscription models have found their way to physical products as well. Several start-ups have successfully entered the market with products such as groceries, flowers, and…