Vinted is an online shopping marketplace with a strong secondhand component. The company makes money via its buyer protection service. The buyer pays a fee to Vinted in exchange for services like customer support, insurance, and tracked shipping; Shipping costs; Wardrobe Spotlight (helping users boost the visibility of their items). And Bumping listed items.
Business Model Element
Analysis
Implications
Examples
Value Proposition
Vinted’s value proposition revolves around offering an easy-to-use platform for buying, selling, and swapping second-hand clothing and accessories. For Sellers, Vinted provides: – A Large User Base: Access to a large community of potential buyers. – User-Friendly Listing Tools: Easy-to-use tools for creating listings. – Cost-Effective Selling: No listing fees and low selling fees. For Buyers, Vinted offers: – Affordable Shopping: Access to a wide range of second-hand items at competitive prices. – Secure Transactions: Payment protection and dispute resolution. Vinted simplifies the process of decluttering closets and finding affordable fashion.
Provides sellers access to a large user base and cost-effective selling. Attracts buyers with affordable shopping and secure transactions. Encourages sustainability through the resale of clothing. Satisfies the needs of sellers looking to declutter and buyers seeking budget-friendly fashion.
– Large user base increases visibility for sellers. – User-friendly listing tools simplify the selling process. – Low selling fees benefit sellers financially. – Affordable shopping appeals to budget-conscious buyers. – Payment protection builds trust in transactions.
Customer Segments
Vinted serves various customer segments, including: 1. Sellers: Individuals looking to sell their pre-owned clothing and accessories. 2. Buyers: Shoppers seeking affordable second-hand fashion. 3. Swappers: Users interested in trading items with others. Vinted caters to a diverse user base, from sellers looking to declutter their wardrobes to fashion-conscious buyers and swappers.
Focuses on diverse customer segments, including sellers, buyers, and swappers. Customizes the platform to address the unique needs and preferences of each group. Provides a versatile platform for second-hand fashion transactions.
– Serving diverse customer segments broadens Vinted’s user base. – Tailoring services enhances customer satisfaction and engagement.
Distribution Strategy
Vinted’s distribution strategy relies on its mobile app and website. Users can access the platform via the app or website to browse, list, and purchase items. The platform also utilizes social media and online marketing to attract users. Additionally, word-of-mouth and referrals from existing users contribute to its growth.
Primarily utilizes distribution through its mobile app and website. Offers online access for user convenience. Utilizes social media and online marketing to reach potential users. Benefits from word-of-mouth and referrals for organic growth. Ensures easy access to its platform for all users.
– Mobile app and website align with user preferences. – Social media and online marketing drive user growth. – Word-of-mouth and referrals contribute to organic growth.
Revenue Streams
Vinted generates revenue primarily through seller fees. Sellers are charged a percentage fee on the sale price when their items are sold. There are no listing fees. Additionally, Vinted may explore other revenue streams in the future, such as premium features or advertising. The primary revenue source is the seller fee.
Relies on revenue from seller fees, taking a percentage of the sale price. Does not charge listing fees, making it accessible for sellers. Considers potential future revenue streams like premium features or advertising. Emphasizes the seller fee as the primary income source.
– Seller fees provide a revenue source from successful sales. – No listing fees encourage more listings and engagement. – Exploring premium features or advertising can diversify revenue streams.
Marketing Strategy
Vinted’s marketing strategy includes digital advertising, social media marketing, and user referrals. The platform utilizes online advertising channels and social media platforms to attract both sellers and buyers. Additionally, Vinted benefits from users referring others to the platform, which contributes to its growth.
Utilizes digital advertising, social media marketing, and user referrals for marketing. Targets both sellers and buyers through online advertising channels and social media. Benefits from word-of-mouth referrals for organic user acquisition. Effectively promotes services through digital channels and user connections.
– Online advertising reaches potential users effectively. – Social media marketing engages the community. – User referrals contribute to organic growth.
Organization Structure
Vinted’s organizational structure includes teams dedicated to technology development, customer support, marketing, and user trust and safety. Technology development teams focus on app and website enhancements. Customer support teams assist users with inquiries and issues. Marketing teams promote Vinted’s services, while user trust and safety teams ensure a safe environment. This structure supports innovation, user satisfaction, and platform integrity.
Employs specialized teams for technology development, customer support, marketing, and user trust and safety. Enhances the app and website through technology development teams. Assists users with inquiries and issues through customer support teams. Promotes services through marketing teams. Ensures a safe environment through user trust and safety teams. Supports innovation, user satisfaction, and platform integrity.
– Specialized teams drive platform innovation and improvement. – Customer support builds trust and addresses user needs. – Marketing promotes services effectively. – User trust and safety maintain a safe environment for users.
Competitive Advantage
Vinted’s competitive advantage stems from its user-friendly platform, large and engaged community, affordability, and sustainability focus. User-Friendly Platform: Offers an intuitive and easy-to-use interface. Large and Engaged Community: Attracts a wide user base of buyers and sellers. Affordability: Provides budget-friendly fashion options. Sustainability Focus: Promotes the reuse and recycling of clothing.
Derives a competitive advantage from: – A user-friendly platform that simplifies transactions. – A large and engaged community that benefits both sellers and buyers. – Affordable fashion options that cater to budget-conscious shoppers. – A sustainability focus that appeals to environmentally conscious consumers. Sets itself apart in the second-hand fashion market by offering a convenient, affordable, and sustainable platform for users.
– User-friendly interface enhances the user experience. – A large community attracts more buyers and sellers. – Affordability appeals to budget-conscious shoppers. – Sustainability aligns with environmental values.
Vinted is an online community marketplace headquartered in Vilnius, Lithuania.
The platform was created by Milda Mitkute and Justas Janauskas in 2008 during the prototype testing of a website where women could trade clothing.
The need for a prototype arose after Mitkute found herself with too many clothes while trying to move house.
Over a few drinks in a bar, Mitkute and Janauskas discussed the creation of a website where users could buy and sell their pre-loved fashion items.
Janauskas was initially skeptical that the idea would be successful, but after consulting a few female friends, the software expert agreed to take part in what was then a hobby project.
After launch, Vinted started to grow organically with the co-founders having to do very little marketing.
Expansion plans for the platform began one night when Janauskas was coding while hosting a couch-surfing guest in his home.
The guest, a German from Munich named Sophie Utikal, pressed Janauskas for more details about the business.
After becoming passionate about the potential of Vinted, Utikal proposed that it expand into Germany.
Utikal took care of the advertising and promotional efforts, while Janauskas registered a German domain name and worked on platform localization.
The site now operates in Germany as Kleiderkreisel and, like its counterpart in Lithuania, grew organically through word-of-mouth.
Angel investment
After repeating the process in the Czech Republic, Vinted started to attract the attention of investors.
One of these who left a lasting impression on Janauskas was Lithuanian angel investor Mantas Mikuckas.
In an interview with Tech.eu, he noted that “We were really on the same page in terms of wanting to grow Vinted globally – and not just into a local/national platform for classifieds, which most other investors were interested in.”
After securing capital from Mikuckas, Vinted professionalized its activities, employing extra staff and paying more attention to social media and marketing.
In January 2013, the company raised a further €5.2 million from Accel to fund its expansion efforts and product development.
That same year, Mikuckas joined Vinted as its COO.
Like many companies that expand too fast, too soon, Vinted burned through most of its cash and faced potential bankruptcy in 2016.
Strategy consultant and eventual Vinted CEO Thomas Plantenga was brought in to steady the ship, with the company reducing its overseas presence and instead choosing to focus on the core markets of France and Germany.
Vinted’s core platform gave users the ability to buy, sell, and swap clothing or accessories in 15 countries. According to the company, it now has a community of around 50 million men and women.
Expansion
In May 2022, Vinted announced that it would be expanding the platform with two additional categories:
Pets
Incorporating various subcategories for dog, cat, fish, bird, and reptile accessories.
Some of the most popular items include clothing, collars, leads, beds, toys, travel carriers, and aquariums.
Entertainment
Featuring movies, musical articles, books, video game consoles, video games, and a “Retrogaming” subcategory with board games, puzzles, skill games, and tile games.
In addition to giving users more opportunities to sell used items, the move was also seen as a way for Vinted to promote sustainable consumption habits and take advantage of the increase in pet ownership in some parts of Europe.
Sales of second-hand items have also increased because of record inflation across much of the world coupled with high energy prices.
Vinted Go
In May 2022, the company announced Vinted Go – a new shipping service to provide affordable and convenient delivery options for the Vinted marketplace and other businesses.
PUDO is a more sustainable alternative to home delivery, with orders dropped at the counter of staffed businesses such as grocery stores or in unstaffed lockers that can be located almost anywhere.
Further increasing the environmental credentials of Vinted Go is the fact that electric vehicles would be used to transport parcels between PUDO points. This system was first introduced in Paris in June.
The introduction of Vinted Go on the Vinted marketplace was also seen as a way to increase customer loyalty and satisfaction according to Vinted Go VP Vytautas Atkočaitis.
In an expose on the company’s website, Atkočaitis explained that C2C was more complex than B2C and that painless shipping was crucial to its success:
“We have to ensure that a person who sells their no-longer worn item can just pack it and send it. We also need to guarantee that the buyer can easily pick it up. As well as this, all the actions in between, such as tracking, have to be transparent.”
Vinted Go as a third-party carrier
Vinted Go’s infrastructure was made available to third-party carriers soon after. This was limited to European eCommerce companies initially, but as new products and tech is developed over time, the company believes it can cater to the needs of more diverse clients.
In any case, Atkočaitis believes the infrastructure addresses some of the major shortfalls of European logistics:
“Cross border shipping infrastructure in Europe is highly fragmented and lacks the affordability, convenience and connectivity that is key to enable international ecommerce.”
Atkočaitis also explained that Vinted Go would operate as a separate business unit within the Vinted group. In the short term, the focus is on growth in the European market where only 10% of parcels are delivered to lockers.
Over the long term, the company will move into other markets and create a virtual shipping platform available to eCommerce companies around the world.
Growth from inflation
As the cost of living increased substantially in the second half of 2022, Vinted’s mantra to make “second-hand fashion the first choice” started to resonate with more consumers.
This has coincided with growth in the second-hand apparel market which might further expand into a two billion euros market in a few years.
Vinted CEO Thomas Plantenga explained that despite the economic outlook, the company was optimistic about the future and looking to add to its 1,500 employees by “hundreds of people this year and next year.”
Value Proposition
Affordable Fashion: Vinted offers consumers access to affordable fashion items, including clothing, shoes, accessories, and home goods, at discounted prices compared to traditional retail. By buying pre-owned items, shoppers can enjoy stylish and quality products at a fraction of the cost, making fashion more accessible to everyone.
Sustainability: Vinted promotes sustainable fashion by encouraging the reuse and recycling of clothing and accessories, reducing waste and environmental impact associated with fast fashion and textile production. By extending the lifecycle of garments and reducing the demand for new clothing, Vinted contributes to a more sustainable and circular fashion economy.
Convenience and Accessibility: Vinted provides a convenient and accessible platform for individuals to buy, sell, and swap fashion items from the comfort of their homes, using desktop computers or mobile devices. With easy-to-use listing tools, secure payment processing, and nationwide shipping options, Vinted offers a seamless and hassle-free shopping experience for both buyers and sellers.
Community and Engagement: Vinted fosters a vibrant community of fashion enthusiasts, sellers, and buyers who share a passion for style, self-expression, and sustainable living. Through social features, user interactions, and community forums, Vinted facilitates connections, conversations, and collaborations among members, creating a supportive and inclusive environment for fashion lovers.
Trust and Safety: Vinted prioritizes trust and safety by implementing robust authentication, verification, and fraud prevention measures to protect users and ensure the integrity of transactions. With secure payment processing, buyer and seller protections, and customer support services, Vinted offers peace of mind and confidence to its community members when buying or selling on the platform.
Vinted revenue generation
Vinted revenue generation used to be reliant on charging seller fees for every completed transaction.
However, the company has moved away from charging consumers to list or sell their clothing items. It now makes money in a few different ways that are explained below.
Buyer protection/service fee
The buyer pays a buyer protection fee to Vinted in exchange for services that include:
Purchase protection
Vinted will refund buyers if an item arrives damaged, differs significantly from the product description, or does not arrive at all. Refunds will be offered provided the buyer informs the company within 2 days of the item being marked as ‘delivered’.
Fraud protection
Vinted’s fraud protection ensures no malicious actor can make unauthorized purchase on a buyer’s behalf. In the company’s words, “we put an extra layer of safety to your purchases”, which means Vintedwill check transactions at random with purchase verification measures.
Customer support
The company’s customer support team is always available to help buyers with disputes and other issues.
The fee for these services is 5% of the item price (excluding taxes and postage cost) plus an additional fixed amount of $0.70.
It is important to note that this fee is a mandatory charge to protect the integrity of the Vinted payment process.
Shipping costs
The buyer also bears the cost of shipping, with prices dependent upon the size of the package and the type of courier service used.
Vinted passes the freight cost to the buyer and likely makes no money from the arrangement.
However, some believe it turns a profit because it can ship in bulk and receive a discounted price from the courier.
Nevertheless, in Canada for example, home deliveries are handled by Canada Post by default, but buyers can also choose from other options should they so desire.
In addition to increased flexibility, these options may reduce shipping costs in some instances.
Indeed, parcels delivered to a local drop-off shop or locker are likely to be markedly cheaper than home delivery.
Wardrobe Spotlight (UK)
Wardrobe Spotlight is a feature unique to Vinted UK, helping users boost the visibility of their items in the marketplace.
For a full week, Vinted customers can have items from their wardrobe shown in dedicated spots in the news feed of other members. These members will also have easy access to the rest of the seller’s range of items.
This extra visibility is also targeted. In other words, it will be shown to members with similar body sizes and brand preferences.
Vinted charge £6.95 for the service and to be eligible to participate, users must have 5 or more items for sale for the duration of the seven-day period in which Wardrobe Spotlight is enabled.
Bumping listed items
Similar to Wardrobe Spotlight, users can purchase a bumping service to get their items to appear in the news feed or search results of other members.
This feature is well suited to clothes from desirable brands that are in good condition and can attract a premium.
The bumping service occurs once a day or until the item is sold, with users able to choose between a 3-day and 7-day calendar period.
When users bump an item, it is shown to more users in their news feed and also in catalog search results.
The visibility of the bump itself can be adjusted according to various criteria such as clothing type, size, and the specific brands other Vinted members follow on the platform.
Vinted charges $0.95 per item for a three-day bump in the United States.
Third-party advertising
As the largest online marketplace devoted to online pre-loved fashion, Vinted is attractive to advertisers who want to take advantage of significant levels of unique traffic across the company’s app and web-based presence.
Interested third parties can register for Vinted’s self-serve platform where they can create and organize their ad campaigns.
Those wanting to learn more about ad placements and pricing are encouraged to email the company to discuss their options.
Marketing Strategy
Social Media Marketing: Vinted utilizes social media platforms, such as Instagram, Facebook, Twitter, and Pinterest, to engage with its target audience, showcase curated collections, share user-generated content, and promote special offers or events. By leveraging visual storytelling, influencer partnerships, and user-generated hashtags, Vinted builds brand awareness and drives user engagement on social channels.
Content Marketing: Vinted creates and curates compelling content, including fashion trends, styling tips, DIY guides, and sustainability initiatives, to educate, inspire, and entertain its audience. Through blog posts, articles, videos, and newsletters, Vinted positions itself as a trusted source of fashion inspiration and lifestyle content, attracting and retaining users interested in sustainable fashion and thrifting culture.
Email Marketing: Vinted implements email marketing campaigns to nurture customer relationships, deliver personalized recommendations, and promote relevant products or promotions to subscribers. By segmenting email lists based on user preferences, browsing history, or purchase behavior, Vinted delivers targeted messaging and incentives to drive engagement, conversions, and repeat purchases.
Influencer Collaborations: Vinted partners with fashion influencers, content creators, and micro-influencers to amplify brand messaging, reach new audiences, and drive user acquisition through authentic endorsements and sponsored content. By collaborating with influencers who resonate with its target demographic, Vinted leverages their influence and credibility to increase brand visibility and generate buzz around the platform.
Referral Program: Vinted incentivizes user referrals and word-of-mouth marketing through its referral program, offering rewards or discounts to users who invite friends to join the platform or make their first purchase. By tapping into the power of peer recommendations and social sharing, Vinted encourages user growth and acquisition while rewarding loyal customers for spreading the word about the platform.
Who owns Vinted?
Vinted’s ownership status is not publicly disclosed. However, various firms have taken equity stakes in the company across a total of seven funding rounds to date.
These include:
EQT Growth.
Accel.
Burda Principal Investments.
Insight Partners.
Lightspeed Venture Partners, and
Sprints Capital Management.
Reports also suggest that co-founder Milda Mitkute owns a significant share of the company.
Vinted vs. Depop
As we saw, Vinted is an online marketplace where users can buy, sell, or even exchange new and second-hand clothing and accessories.
The company became Lithuania’s first tech unicorn in 2019 and is now available in 16 countries such as Spain, France, Germany, Austria, Slovakia, and Poland.
Depop instead, is a P2P social eCommerce company where users buy and sell predominantly used and vintage fashion items.
It was founded in Italy in 2011 and now has a presence in the United States, United Kingdom, Australia, and New Zealand.
Depop is a peer-to-peer shopping app founded by Simon Beckerman in 2011 at the Italian technological incubator and start-up center H-FARM. Depop experienced tremendous growth in the following years, thanks largely to word-of-mouth advertising and social sharing. The platform now boasts more than 21 million users. Marketplace giant Etsy has plans to acquire Depop in the third quarter of 2021 for a cash deal worth $1.625 billion.
Understanding the difference between Vinted and Depop
At first glance, it appears there is little difference between Vinted and Depop.
Both provide basically the same services, but the two platforms have an approach that differs in a few key areas.
Revenue generation and fees
Vinted does not charge sellers to list items in its marketplace, with buyers required to pay a buyer protection fee and cover the cost of shipping.
As a consequence, Vinted buyers expect sellers to offer a lower price for items since they are the ones wearing the costs.
Depop sellers, on the other hand, are charged a fee that equates to 10% of each sale.
This money is used to provide buyer and seller protection and pay the company’s employees.
Since Depop payments are handled by PayPal, some sellers are also charged a PayPal fee.
How it works
Depop’s marketplace feels more like a social media app where buyers scroll through a feed as they would on Instagram.
With a high discoverability factor on the platform, sellers have access to a broader audience and buyers will not realize they needed a particular item until stumbling across it.
Depop also encourages sellers to create professional offers and is thus better suited to small businesses.
Vinted’s marketplace is not as aesthetically pleasing or familiar as Depop’s, but this is not to say that it isn’t effective.
The platform has a much smaller list of available categories for sellers and instead focuses on making the buyer experience smooth and efficient.
For these reasons, Vinted is more suited to individual sellers who are less worried about making a profit.
Both Vinted and Depop reward sellers with more sales if they engage with their respective platforms.
In other words, the more sellers like items, follow other users, and list products for sale, the more visible they will become and increase their earning potential.
Strategy
There are also differences in strategy between the two platforms.
Depop is skewed toward vintage fashion items with “cool” or “unique” looks that appeal to its mostly younger and trendier target audience. It is mostly active in the United States.
Conversely, the Vinted marketplace targets consumers who desire a place to sell or swap their preloved items.
As a general rule, Vinted’s audience tends to be older when compared to Depop. Vinted also has more international reach than Depop with a strong European focus.
Connecting the dots on differences between Vinted and Depop
At first glance, there appears to be little difference between Vinted and Depop. Both provide basically the same services, but the two platforms do vary in a few key areas.
Vinted does not charge sellers to list items in its marketplace, with buyers required to cover shipping and pay a small buyer protection fee. Conversely, Depop charges sellers a fee worth 10% of the total sale.
Depop’s marketplace is more akin to a social app such as Instagram where users can scroll through a feed and discover new items. While it is more expensive to sell on Depop, the platform is better suited to small business owners than Vinted because of its broader reach and extra product categories.
Key takeaways:
Vinted is an online community marketplace founded in Vilnius, Lithuania, in 2008. The idea for the platform came when founder Milda Mitkute needed to offload excess clothing during the process of moving house.
Vinted does not charge its users for listing or even selling their unwanted items. Instead, their revenue generation is dependent on buyers who must pay all of the transaction and shipping costs.
Vinted also makes money with its Wardrobe Spotlight service. For a relatively small fee, users can pay to have their listings made more visible in the news feeds or search results of buyers.
Key Highlights
Origin Story: Vinted was founded in 2008 in Vilnius, Lithuania, by Milda Mitkute and Justas Janauskas. The idea was born from Mitkute’s need to declutter her wardrobe while moving.
Early Growth: Vinted started as a website for women to trade clothing and grew organically with minimal marketing efforts.
International Expansion: The platform expanded to Germany, known as Kleiderkreisel, with the help of a passionate user-turned-partner named Sophie Utikal. It later expanded to other countries.
Investment and Professionalization: Vinted attracted investments, including from angel investor Mantas Mikuckas and Accel. The company grew its team, focused on social media, and raised funds for expansion and product development.
US Expansion and Financial Struggles: Vinted expanded to the US and UK, facing financial challenges due to rapid expansion. Strategy consultant Thomas Plantenga was brought in to stabilize the company.
Platform Features: Vinted allows users to buy, sell, and swap clothing and accessories. It offers a range of services like customer support, fraud protection, and purchase protection in exchange for a fee.
Recent Expansion and Services: In 2022, Vinted expanded its platform to include categories like Pets and Entertainment items. It introduced Vinted Go, a shipping service, to enhance the delivery experience.
Financial Growth: Vinted saw significant revenue growth in the face of increased interest in second-hand items due to rising costs of living. CEO Thomas Plantenga expressed optimism about the company’s future.
Revenue Generation: Vinted shifted its revenue model from seller fees to buyer protection/service fees, shipping costs, and additional services like Wardrobe Spotlight and bumping listed items.
Ownership and Funding: The ownership structure of Vinted is not publicly disclosed, but various firms, including EQT Growth, Accel, and Burda Principal Investments, have invested in the company.
Slow fashion is a movement in contraposition with fast fashion. Where in fast fashion, it’s all about speed from design to manufacturing and distribution, in slow fashion, quality and sustainability of the supply chain are the key elements.
Patagonia is an American clothing retailer founded by climbing enthusiast Yvon Chouinard in 1973 who saw initial success by selling reusable climbing pitons and Scottish rugby shirts. Over time Patagonia also became a fashionable brand also for its focus on slow fashion. Indeed, the company sells high-priced clothing items built to last which it will repair for free.
Patagonia has a particular organizational structure, where its founder, Chouinard, disposed of the company’s ownership in the hands of two non-profits. The Patagonia Purpose Trust, holding 100% of the voting stocks, is in charge of defining the company’s strategic direction. And the Holdfast Collective, a non-profit, holds 100% of non-voting stocks, aiming to re-invest the brand’s dividends into environmental causes.
Fash fashion has been a phenomenon that became popular in the late 1990s and early 2000s, as players like Zara and H&M took over the fashion industry by leveraging on shorter and shorter design-manufacturing-distribution cycles. Reducing these cycles from months to a few weeks. With just-in-time logistics and flagship stores in iconic places in the largest cities in the world, these brands offered cheap, fashionable clothes and a wide variety of designs.
With over €27 billion in sales in 2021, the Spanish Fast Fashion Empire, Inditex, which comprises eight sister brands, has grown thanks to a strategy of expanding its flagship stores in exclusive locations around the globe. Its largest brand, Zara, contributed over 70% of the group’s revenue. The country that contributed the most to the fast fashion Empire sales was Spain, with over 15% of its revenues.
The Ultra Fashion business model is an evolution of fast fashion with a strong online twist. Indeed, where the fast-fashion retailer invests massively in logistics and warehousing, its costs are still skewed toward operating physical retail stores. While the ultra-fast fashion retailer mainly moves its operations online, thus focusing its cost centers on logistics, warehousing, and a mobile-based digital presence.
ASOS is a British online fashion retailer founded in 2000 by Nick Robertson, Andrew Regan, Quentin Griffiths, and Deborah Thorpe. As an online fashion retailer, ASOS makes money by purchasing clothes from wholesalers and then selling them for a profit. This includes the sale of private label or own-brand products. ASOS further expanded on the fast fashion business model to create an ultra-fast fashion model driven by short sales cycles and online mobile e-commerce as the main drivers.
Real-time retail involves the instantaneous collection, analysis, and distribution of data to give consumers an integrated and personalized shopping experience. This represents a strong new trend, as a further evolution of fast fashion first (who turned the design into manufacturing in a few weeks), ultra-fast fashion later (which further shortened the cycle of design-manufacturing). Real-time retail turns fashion trends into clothes collections in a few days or a maximum of one week.
SHEIN is an international B2C fast fashion eCommerce platform founded in 2008 by Chris Xu. The company improved the ultra-fast fashion model by leveraging real-time retail, quickly turning fashion trends in clothes collections through its strong digital presence and successful branding campaigns.
Zara is a brand part of the retail empire Inditex. Zara is the leading brand in what has been defined as “fast fashion.” With almost €20 billion in sales in 2021 (comprising Zara Home) and an integrated retail format with quick sales cycles. Zara follows an integrated retail format where customers are free to move from physical to digital experience.
Wish is a mobile-first e-commerce platform in which users’ experience is based on discovery and customized product feed. Wish makes money from merchants’ fees and advertising on the platform, and logistic services. The mobile platform also leverages an asset-light business model based on a positive cash conversion cycle where users pay in advance as they order goods, and merchants are paid in weeks.
Poshmark is a social commerce mobile platform that combines social media capabilities with its e-commerce platform to enable transactions. It makes money with a simple model, where for each sale, Poshmark takes a 20% fee on the final price for sales of $15 and over and a flat rate of $2.95 for sales below that. Its gamification elements and the tools offered to sellers are critical to the company’s growth as a mobile-first platform.
LVMH is a global luxury empire with over €79 billion ($83 billion) in revenues for 2022, spanning several industries: wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, and selective retailing. It comprises brands like Louis Vuitton, Christian Dior Couture, Fendi, Loro Piana, and many others.
Kering Group follows a multi-brand business model strategy. The central holding helps the brands and Houses part of its portfolio leverage economies of scale while creating synergies. At the same time, those brands are run independently. Kering is today a global luxury brand that made over €20 billion in revenue based on this multi-brand strategy. Within Kering Group are brands like Gucci, Bottega Veneta, Saint Laurent, and many more—the primary operating segments based on luxury and lifestyle.
Kering is a luxury goods multinational founded in France by François Pinault in 1963. The company, which initially specialized in timber trading, grew via acquisitions and was listed on the Paris Stock Exchange in 1988. Two years later, Kering merged with a French conglomerate interested in furniture, department stores, and bookstores.
Steady revenue growth from 2012 to 2018, with an increase of 71% over the period (€3.48 billion to €5.96 billion)
A significant jump in revenue between 2018 and 2019, a 15% increase (€5.96 billion to €6.88 billion)
A slight decrease in revenue in 2020 due to the global pandemic, dropping by 7% (€6.88 billion to €6.39 billion)
Strong rebound in 2021 with a 41% increase in revenue (€6.39 billion to €8.98 billion)
Impressive growth in 2022, with revenue reaching €11.6 billion, a 29% increase from 2021
Overall, revenue grew more than threefold from 2012 to 2022 (€3.48 billion to €11.6 billion)
Prada generated €4.2 billion in revenue in 2022, primarily coming from its leading brand, Prada, which generated €3.25 billion, followed by Miu Miu, which generated €431 million, and Church’s which generated €29 million.
Bershka generated €2.18 billion in revenue in 2021, compared to €1.77 billion in 2020 and €2.38 in 2019. Pull&Bear generated €1.87 billion in revenue in 2021, compared to €1.42 billion in 2020 and €1.97 billion in 2019.
In 2020, the revenue was $555 million.
The revenue decreased in 2021 to $418 million.
However, in 2022, Jimmy Choo’s revenue increased significantly to $613 million.
Miu Miu is a crucial brand part of the Prada Group. Miu Miu generated €431 million in revenue in 2022, compared to €346 million in 2021 and €329 in 2020.
Curch’s footwear is a brand part of the Prada Group. The company generated over €29 million in revenue in 2022 and 2021, compared to nearly €37 million in revenue in 2020. Pull&Bear generated €1.87 billion in revenue in 2021, compared to €1.42 billion in 2020 and €1.97 billion in 2019.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
