Revolutionizing Fashion Retail with P2P Renting Marketplace
Stylelend is a peer to peer (P2P) marketplace in the fashion industry headquartered in New York City (and formerly in San Francisco), in which their users can share their pieces of clothing to the other users and the platform provides the cleaning, quality control, logistics and admin around the rental. Stylelend worked with FFA to analyze and design a B2B Innovation & Sales Strategy (and its related value proposition), in order to get large fashion retail brands and fashion boutiques to join the platform with the benefit for them to create an additional (non-cannibalizing) business model and for Stylelend to enhance the supply side of its marketplace.
In 2014 was selected by Y Combinator to join their acceleration program and raised USD 3M in Venture Capital so far. They have set and consolidated their operations in the US, from the west to the east coast.
We met Stylelend in 2016 during a discussion about strategic partnerships thread in a Facebook group, in which the CEO of Stylelend Lona Duncan got in touch with our CEO, Frank M. Saviane, and they decided that it would be interesting to develop the open topics together. In late 2017 with a period of remote work out of Europe on the analysis and design of the work, our CEO Frank moved to New York for some weeks to work with the team onsite and deploy the results on the market.
"Frank supported us to analyze and develop a B2B strategy that could go hand in hand with our existing P2P marketplace strategy. The biggest asset was that he and his team were looking at the problem in a completely different angle, putting their experience with past fashion startups, but also their independent frameworks at play."Lona Duncan | Founder & CEO | Stylelend"FFA helped us develop our B2B value proposition"
PROBLEMS & CHALLENGES
Stylelend was trying to diversify its product and business model to complement the pure P2P marketplace and provide the platform also to fashion retailers and fashion boutiques. By doing so the idea was to obtain two main value propositions for both parties:
– For Stylelend it would provide a new source and supply of unique fashion items that their user could lend
– For large fashion retailers and fashion boutiques the opportunity to create a new business model of how to monetize their clothes (instead of normal direct sales). Especially certain designer dresses will be worn only 1 time for a special occasion, and not used anymore afterward, which makes buying a piece very inconvenient for the client.
For a company merely focused on B2C coming up with the whole B2B setup (product, value proposition, processes, pricing, presentation for sales/partnerships) is not straightforward and requires deeper understanding and experience in B2B Innovation and Sales.
ACTIONS & SOLUTIONS
In a 4 week project (with a combination of remote and on-site work), FFA supported Stylelend to come up with a B2B product specification and all related components, such as B2B lending process, platform UX/UI and related platform pricing that would fit the target companies.
With all the components at hand, we structured different corporate partnership and sales presentations for specific types of fashion-related retailers and brands aimed at providing everything needed to assess the strategic potential of the collaboration with Stylelend (containing also deep elements on the non-cannibalization of this model to their existing sales-oriented business models).
IMPACT & OUTCOME
FFA produced the presentations and decks which were used to close some very large US-based fashion retailers (names under non-disclosure) and high-end boutiques to set up a pilot on some pieces of the new season’s collection under the new Stylelend model.