• Content streaming (Netflix, Spotify, Disney, Amazon Prime), 

• Gym membership (1Rebel, Psycle, Soulcycle, Gymgroup),

• Department store memberships (Harrods, Selfridges, Harvey Nichols), 

• Food monthly delivery (Hello Fresh, PRESS)

• Combined services (Uber one)

• Online graphic design/editing (Canva, Readymag, Photoshop, Capcut)

• Writing / Academic learning (Chatgpt, Grammarly)

Sell in store and online - Business to consumer  

Tesco, M&S, Space NK, Sephora, Boots, TK Max, ASOS, Boutique, Amazon  

Spotify

Netflix

Uber

They don’t just sell a product, they sell a service for a recurring fee

Instead of purchasing a DVD, they get a Netflix subscription

CD -> Spotify

Customers access a wide variety of content without having to own it

BY OFFERING THEIR PRODUCTS AS SERVICES

Benefits:

Safety net for start-up

A steady stream of income

Challenges:

Constantly on the hook to deliver value

Lose customer quickly

Requires continuous investment in product development, customer service, and overall operational excellence

A lot of pressure on startups with limited resources

Missteps:

Underestimating the cost of customer

Failing their scale of exciting services effectively

…

How to use it

Understanding your customer needs

What could make their lives easier?

Provide a service that meets their needs

Provide excellent service

You're selling an ongoing relationship

Customer support

Constantly innovate your products

The model thrives on innovation

Keep updating and improving

To stay ahead of the competition

Stay relevant and valuable

Tommy hillfigure

River Island

Reiss

Vogue

Mango

The term "freemium" is a blend of "free" and "premium" and refers to a business model where companies offer basic features of a product or service for free while charging a fee for advanced or enhanced features.

In this model, users can access the basic version of a product at no cost, often as a limited version or free trial. However, to unlock premium features—such as extra functionality, additional storage, or better support—users must pay.

Key Points About the Freemium Model

1. Definition: Freemium businesses provide complimentary basic services, reserving advanced features for paid users.

2. History: Though the concept began in the 1980s, the term "freemium" was officially coined in 2006.

3. Popularity: The model is particularly successful in software applications and online businesses, as it attracts a wide user base by eliminating barriers to entry.

4. Advantages: By offering a free option, companies can draw in a large number of initial users who may later convert to premium users if they find the advanced features valuable.

5. Sustainability: Success depends on providing premium users with meaningful upgrades, such as more storage, exclusive features, or superior customer support.

Examples of Freemium Businesses

1. Software and Productivity Tools:

   • Dropbox: Provides free cloud storage with a limit, charging for expanded storage and additional features.

   • Slack: Offers free messaging and basic collaboration tools, while paid plans include enhanced features like increased storage and advanced integrations.

2. Entertainment and Streaming Platforms:

   • Spotify: Allows free access to music with ads, while premium users enjoy an ad-free experience, offline downloads, and better sound quality.

   • YouTube Premium: While YouTube is free, the premium service removes ads, enables background play, and offers exclusive content.

3. Online Education Platforms:

   • Duolingo: Offers free language lessons but charges for ad-free usage and additional tools through its premium subscription.

   • Coursera: Provides free courses with the option to pay for certificates and access to graded assignments.

4. Business Tools:

   • Zoom: Provides free video conferencing with time and participant limits, while premium plans allow for extended meeting times and more participants.

   • Canva: Offers free design tools but charges for access to premium templates, advanced editing features, and additional storage.

What problem are you solving?

Fast fashion creates excessive waste and environmental damage, while consumers often seek trendy, high-end fashion without the need for ownership.

What value do you offer?

Affordable, sustainable access to luxury and designer fashion through rentals, promoting a circular economy.

Customer Segments

Who are your customer segments?

Eco-conscious millennials and Gen Z individuals.

Event-goers needing outfits for weddings, parties, or corporate events.

Fashion enthusiasts seeking trendy or seasonal items.

Customer Relationships

What kind of relationship do you establish and maintain with them?

Direct-to-consumer (D2C) relationships via an easy-to-use platform.

Personalized user experience with curated recommendations and virtual styling assistance.

Continuous engagement through loyalty programs, eco-awareness campaigns, and social media.

Channels

How do you reach your customers? What are the routes for communication and promotion?

Digital Platform: Website and mobile app for seamless browsing and renting.

Social Media: Instagram and TikTok campaigns showcasing outfit ideas, testimonials, and user-generated content.

Partnerships: Collaborations with designers and influencers to expand inventory and reach.

Key Activities

What does your business do? Are there different revenue streams?

Core Activities: Renting high-end and designer clothing, dry cleaning, and logistics.

Revenue Streams:

One-time rental fees.

Subscription plans for frequent renters.

Partnerships with designers to feature their collections.

Business Relationships

Why are financial interactions important?

They ensure seamless scalability, inventory turnover, and strong partnerships with designers and retailers.

Is this a B2C or B2B relationship?

Primarily B2C but with B2B elements when partnering with designers and brands.

Key Competency

What activities must your business be good at to succeed?

Effective logistics for inventory management, delivery, and garment cleaning.

Trend forecasting to ensure a desirable inventory.

Marketing expertise to engage eco-conscious and fashion-forward audiences.

What skills or experience do you bring to the table, and what must you outsource?

In-house Expertise: Platform management, trend curation, customer service.

Outsourced: Dry cleaning, repair services, and some logistical operations.

Key Partners

Are there organizations or other entities that you rely on to help deliver your product or service?

Designers and Brands: Providing garments for rentals.

Logistics Partners: Ensuring timely deliveries and returns.

Sustainability Experts: Collaborating on eco-friendly initiatives and marketing campaigns.

HURR allows users to rent high-end fashion for specific occasions or everyday wear, providing a cost-effective and eco-friendly alternative to fast fashion. It operates through an easy-to-use digital platform, offering services such as curated recommendations, dry cleaning, and convenient delivery, while fostering a circular fashion economy.

High Costs of Luxury Fashion: Purchasing designer clothing is expensive and often impractical for one-time events. HURR makes high-end fashion accessible and affordable.

Wardrobe Clutter: Many people accumulate clothing they rarely wear. Renting solves this by offering variety without long-term commitment.

Consumer Demand for Sustainability: Growing eco-consciousness among consumers creates a need for sustainable fashion solutions, which HURR fulfills through its rental platform.

A UK-based peer-to-peer fashion rental platform that allows users to rent and lend designer clothing and accessories. By Rotation emphasizes community sharing and sustainability, offering a wide range of items for various occasions.

SIMILARWEB

Hirestreet

A UK-based fashion rental service offering affordable high-street and designer clothing for short-term hire. Hirestreet focuses on providing budget-friendly options for events and everyday wear, appealing to a broad audience.

OWLER

MyWardrobeHQ

A luxury fashion rental and resale platform in the UK, providing access to designer clothing and accessories. MyWardrobeHQ offers both rental and purchase options, catering to consumers seeking flexibility and sustainability in their fashion choices.

SIMILARWEB

Selfridges Rental

An extension of the renowned department store Selfridges, offering a rental service for designer clothing and accessories. Selfridges Rental integrates luxury fashion rentals into its existing retail ecosystem, appealing to its established customer base.

SIMILARWEB

John Lewis Fashion Rental

A service by the UK retailer John Lewis, providing customers with the option to rent fashion items. John Lewis Fashion Rental focuses on offering quality and convenience, leveraging the brand's reputation and customer trust.

SIMILARWEB