ShareWear


sharewear

Many consumers have a closet filled with clothes they haven`t worn in years, but that are still in very good condition. We are so used to buying new clothes and throwing/giving them away when we`re done or bored with them, which is quite regretful. ShareWear gives consumers the opportunity to gain value from these clothes by renting them out to other consumers. This allows them to actually make some money from a product that otherwise would eventually just be hanging in the closet for months. ShareWear will function as a platform where consumers can come together and share their wardrobes. ShareWear gains money by receiving a percentage of each transaction price.

ShareWear offers lots of benefits, a short overview of these benefits:

  • Gaining value from “old clothes” by sharing them with other consumers.
  • Clearing out some closet space; closets get filled up with unused clothes and shoe boxes.
  • Clothes will stay in your possession; via ShareWear you will be able to continuously rent out your clothing, this will allow you to generate more money over time.
  • Giving another person the chance to enjoy wearing something luxurious that they otherwise wouldn`t be able to wear, because it might be too expensive to buy.
  • It allows consumers to still wear their clothes themselves.

The transaction between both parties falls under the Dutch contract law: ‘het Huurrecht’. This basically means that the rules that apply when you rent a tuxedo from a clothing shop also apply when you rent/loan clothing via ShareWear. 

The ShareWear customers can be divided into two groups; sharers and wearers. ShareWear creates personal profiles for both these groups. These profiles contain personal preferences, sizes, address and ratings (given by other customers). We created a new marketing value system. 

marketing value system

There are some required investments for the company and its customers. The firm’s investments include GPS function, website/app building, online payments possibilities and marketing expenditures. Customers need to invest time, effort and money before they can share their wares.

In the beginning we will focus primarily on promotional activities in order to attract customers. We will focus our promotion on consumers between the ages of 16 – 36. We have chosen to target this group because we believe this group to be the most receptive to sharing their clothing via ShareWear. In order to increase brand awareness we will use well known Dutch celebrities, who will function as brand endorsers. Sharewear will also be active on social media, such as Facebook and Instagram. Social media creates interaction with customers and could also function as an online community (Muniz and O’Guin, 2001). To communicate we will also use the traditional media sources. 

Our new value marketing system that we proposed meets the key joint pay-off maximization criterion. A discussion about the different effects on the utility of our customers:

Utility level sharer: [financial benefits (↑) + legal benefits (↑)] – [effort (↓)] =↑

 The Utility level wearer: [Wardrobe benefits (↑ ) + social image (↑) + financial benefits (↑) ]  – [options(↓) +  effort (↓)] = ↑ 

Utility level ShareWear: [advertising and transaction revenues (↑)] – [store rental and maintenance cost (↑) + investment and effort (↓)] =↑

Denny Beek          402890
Robin Hofman       402632
Devery Winter       402773

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