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Renoon is a tech startup focused on improving transparency in sustainability claims within the fashion industry. Initially, it operated as a B2B2C platform, helping consumers navigate fragmented and hard-to-verify sustainability information. Users could personalize their sustainability preferences, and Renoon would recommend products accordingly, earning a 15% commission on sales. Despite creating consumer value, Renoon struggled to generate sufficient revenue to sustain profitability. The commission-based model was unreliable due to delayed, variable, and partial payments from sellers, while operational costs continued to rise with the app's growth and international expansion plans.
With this teaching case, students are invited to explore alternative business models to enhance commercial viability. Two primary options are considered: transforming Renoon into a media company providing high-quality content on sustainability and fashion or becoming a reseller directly selling clothes on its platform to earn margins from sales. Students are also encouraged to propose other innovative solutions, detailing their ideas using the Business Model Canvas framework. The teaching note will reveal the business direction that was eventually chosen by Renoon.
This case is based on field research. It is written to provide material for class discussion rather than to illustrate either effective or ineffective handling of a management situation. A separate teaching note has been developed to aid instructors in using the case. Copyright © 2024 RSM Case Development Centre, Erasmus University. No part of this publication may be copied, stored, transmitted, reproduced or distributed in any form or medium whatsoever without the permission of the copyright owner. Please address all correspondence to cdc@rsm.nl
