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Analyzing Innovative Business Models : Subscription Business Models (SBMs) in the fashion Industry

Rysselinck, Adrien ; Henrotte, Eliot
(2024)

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Rysselinck_11381900_Henrotte_54191900_2023.pdf
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Details

Supervisors
Gailly, Benoît
Faculty
Louvain School of Management
Degree label
Master [120] : ingénieur de gestion, à finalité spécialisée
Abstract
This exploratory research paper examines Subscription Business Models (SBMs), focusing specifically on the fashion industry. In response to the move towards accessing services rather than owning products, SBMs have emerged, facilitated by the rise of the internet and e-commerce. These models offer companies a new way of connecting with customers, generating recurring revenues and building long-term relationships through the personalization of the offering. The main objective of this thesis is to identify the general characteristics of SBMs, analyzing the drivers of success and the barriers to their adoption in the fashion sector. The central research question is: What are the drivers and barriers to the successful adoption of the subscription model by companies? The methodology adopted combines a review of the literature on SBMs and semi-structured interviews with fashion companies that have implemented or have considered implementing these models. A general analysis grid was created from the literature to identify the key characteristics of SBMs, then comparing the theoretical data with the empirical data collected during the interviews. This enabled us to propose targeted recommendations for companies in the sector. The research is structured in two main parts: theoretical and empirical. The first part explores the concepts present in the literature on SBMs, the fundamental principles, the advantages, the disadvantages, and the factors for success and failure of adoption. The second part introduces the fashion sector, details the data collection methodology, and analyses the interview results, comparing them with the theoretical findings. This thesis therefore seeks to provide a comprehensive analysis of SBMs, with concrete recommendations for fashion companies wishing to implement or improve this business model in their operations.