{"id":2782,"date":"2015-12-07T23:52:46","date_gmt":"2015-12-08T04:52:46","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/everlane-takes-a-new-fashion-lane\/"},"modified":"2015-12-09T18:09:51","modified_gmt":"2015-12-09T23:09:51","slug":"everlane-takes-a-new-fashion-lane","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/everlane-takes-a-new-fashion-lane\/","title":{"rendered":"Everlane Takes A New Fashion Lane"},"content":{"rendered":"

\"Everlane\"<\/a><\/p>\n

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Everlane can be summed up in their 9-word mission: \u201cKnow your factories. Know your costs. Always ask why<\/strong>.\u201d This transparency is the key driver of their business and operating model. Everlane is one of the few fashion brands to publicize its supply chain. They find the best factories around the world to bring their designs to and develop a strong partnership with each of these factories. These factories manufacture fashion items that are sold on Everlane\u2019s website directly to the consumer (eliminating any normal brick & mortar expenses). The best part? Everlane keeps an open dialogue with their customers every step of the way.<\/p>\n

\"Transparent
\nSuppose you want\u00a0to buy a cashmere sweater. You see\u00a0<\/strong>one on Everlane\u2019s website for $125 \u2013 why should you buy it? You might buy it because you know the sweater comes from Mr. Chu\u2019s Factory in Hong Kong, which you\u2019ve read all about here<\/a>.<\/p>\n

Know your factories. <\/strong><\/p>\n

You might buy it because you perceive you are getting a deal. Materials cost $46.78, labor $12.40, duties $2.37, and transport $2.42. Summed up, its \u201ctrue cost\u201d is $64. Everlane tells you that a traditional retailer would charge you $230, but the Everlane price is $125.<\/p>\n

Know your costs.<\/strong><\/p>\n

You might buy it because you are a \u201cquestioner\u201d or a \u201crule breaker.\u201d Why does fashion retail operate the way it does? Who touched the cashmere sweater that you are buying?\u00a0Where is it from?<\/p>\n

Always ask why.<\/strong><\/p>\n

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BUSINESS + OPERATING MODEL<\/strong><\/span><\/p>\n

Everlane\u2019s business model is that of 100% transparency \u2013 or what they call \u201cRadical Transparency\u201d \u2013 with their consumers. Everlane wants and operates off of this two-way conversation. They creates knowledge value through this Radical Transparency, and captures that value in sales to consumers who buy-in.<\/p>\n

When thinking about Everlane\u2019s operating model, Everlane\u2019s assets are far more than the items of clothing they sell. Their assets are their factories, customers, and environmental awareness & sustainability. Moreover, their operating model consists of a direct-to-consumer structure and additional cost-saving processes to ensure the value to the consumer.<\/p>\n

Everlane aligns their operating model to their business model in the following ways:<\/p>\n