Rra Model - Clozette.Com

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You were presented with a case study of Clozette (Singapore). Provide an organizational analysis of the ebusiness drawing on the RRA (Evans and Wurster, 1997) and Hamel’s business model framework. Provide recommendations in light of the analysis for Clozette and conjecture as to its chances of success in the future. Overview Clozette.co is a new e-business start-up established in 2010 in Singapore by it’s four founders, Cheryl Tan, Roger Yuen, Kersie Koh and Chua Chiang Meng. Clozette.co is a social networking portal which is focused on fashion, apparel and accessories. Their target customers are women-shopaholics between 25-45 years old and currently they focus primarily on Asia Pacific region, because they believe that there is a potential for their business and the market is not over-saturated. It offers the following features to it’s users: To create and organize their closet To share and socialize their closet Discuss the latest fashion trends and provide recommendations about outfits to other users To shop for apparel and accessories from popular designers What is distinctive about Clozette is that apart from offering the above features, it also introduced a platform for buying and selling new or pre-owned items online, while also being social and receiving recommendations from fashion experts about current trends in this industry. Business Model and Strategy According to Chua Chiang Meng’s (Clozette’s co-founder and CTO) information, Clozette’s main business model is licensing their fashion platform to designers and global brands. It seems that they act as a middlemen between customers and designers in a fashion industry, which eventually provides effective advertising for designers (second main revenue stream). Clozette has other revenue streams and they are the following: Commission rates from designer’s trade on their website
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