Quince Embraces a Radical Transparent Manufacturer-to-Consumer Model
Laura McQuarrie — November 4, 2020 — Fashion
References: onequince & fastcompany
At retail, it's not unusual for a high-quality cashmere sweater to cost hundreds of dollars but Quince prices its products differently. The brand is committed to selling Grade A Mongolian cashmere sweaters at the lowest price possible, all while being radically transparent. Quince's Grade A Mongolian cashmere sweaters start at the price of just $50 for women and $59 for men and the brand spells out its entire costing model—most of the costs go to materials, followed by freight and handling, then crafting costs, followed by small credit card and packaging fees.
By embracing a manufacturer-to-consumer model, the brand makes it incredibly affordable for people to upgrade their wardrobe with high-quality staples. As Quince CEO and founder Sid Gupta says: "Each item ships from the factory floor to the customer’s doorstep. This eliminates a tremendous amount of cost, which we pass back to the customer.”
Image Credit: Quince
By embracing a manufacturer-to-consumer model, the brand makes it incredibly affordable for people to upgrade their wardrobe with high-quality staples. As Quince CEO and founder Sid Gupta says: "Each item ships from the factory floor to the customer’s doorstep. This eliminates a tremendous amount of cost, which we pass back to the customer.”
Image Credit: Quince
Trend Themes
1. Radical Transparent Pricing - Quince's commitment to radical transparency in pricing creates disruptive innovation opportunities for businesses to redefine their pricing models and build trust with consumers.
2. Direct Manufacturer-to-consumer Model - Embracing a direct manufacturer-to-consumer model, such as Quince, presents disruptive innovation opportunities for businesses to cut costs and offer affordable products directly to customers.
3. Affordable Luxury Fashion - The rise of brands like Quince offering high-quality products at affordable prices opens up disruptive innovation opportunities for businesses to tap into the market of budget-conscious consumers seeking luxury fashion.
Industry Implications
1. Fashion Retail - The fashion retail industry can explore disruptive innovation opportunities by adopting radical transparent pricing strategies like Quince to offer affordable luxury fashion to consumers.
2. E-commerce - E-commerce platforms can leverage the direct manufacturer-to-consumer model employed by brands like Quince to disrupt the traditional retail landscape and provide customers with affordable high-quality products.
3. Supply Chain Management - The supply chain management industry can capitalize on the radical transparent manufacturer-to-consumer model of brands like Quince, finding innovative ways to cut costs and improve efficiency in the production and delivery process.
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