Business Becomes Possessive: Emergence of the Hybrid Business Model

For as long as we have known, there has been three main parts of the product cycle in the fashion industry. These three models were: brands, retailers, and manufacturers. Each piece of the puzzle held their own specific set of business priorities and expertise. However, more recently, companies have decided that they want more control, insight, and say over each step in the product's lifecycle, from beginning to end. Companies have this notion that if they foresee the product every step of the way, that their success rates will increase, and in return, their profit margins will become more dense.

In the apparel industry, the cycle of the product had been in at least three different companies hands throughout it's life. Items have been designed, produced, and sold by three separate companies that specialize in their area of expertise. But now, companies are realizing the value of overseeing all aspects of the product lifecycle. This means that branding is dabbling their way into manufacturing and retail, manufacturing is crawling into retail and branding, and retail is making it's way into manufacturing and branding. Thus, the hybrid business model emerged.

Although bringing everything under the same roof may seem quite intelligent, there is a major downfall to the "brilliant" idea. It is a massive amount of responsibility to handle! Not only would a company initially not have the staffing to cover all areas effectively, they may not have the expertise in every aspect of the product lifecycle right away. Therefor, the company will need to pay extra attention to certain details and processes that they did not have to before because they are not fully equipped with the necessary tools.. (yet).

These companies are integrating technology into all active departments in order to increase competitive advantage and offer their consumers something genuinely interesting. Price, value, and time are 3 key factors a company must balance successfully in order to produce a product worthy of their efforts. The "discount game" (consumers thrill to purchase product for the lowest price possible- more "bang for their buck"), importance of design (aesthetically pleasing and functionality), and newness to the market/trends are all important focuses to the success of a fashion business.

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Reference: Click the following link to read more in depth about this topic!! https://www.lectra.com/sites/lectra.com/files/document/lectra-white-paper-fashion-changing-landscape-en.pdf

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