CEO Emma Mcilroy and her team weighed the merits of two distinct business
models, as they prepared for a funding pitch to scale Wildfang, a menswear-inspired
fashion brand built around a tomboy image. One was based on a bricks-and-clicks
(B&C) private label retail strategy. The other involved a pivot to a multisided platform.
The analysis of the models is shown below.
Private Label B&C
‘Bricks and Clicks’ is a combination of distribution in physical stores and online
shops. Customer can order, pick up and return purchases either online or offline in
stores. The company will concentrate on expanding the private label either with in–
house designers or collaborations with existing clothing labels. Wildfang has a well-
defined target audience: women who are independent, self-confident and have shared
attitudes and role-models. They are also excited about fashion and menswear-inspired
clothes. The company can promote its brand in physical store first, then go for online
advertising after gain word-of-mouth momentum.
Pros：up to 80% gross margin depending on business model, materials quality,
and price (currently benchmarked at 50%). Third-party merchandise hovered around
35% gross margin, while collaborative pieces designed exclusively for Wildfang could
double these percentages. Walk-in segment that made up 30% of the total portfolio,
estimated to be half that of the Core Loyalist.
Cons: addition investment on product design, manufacturing, inventory
