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Clothing as a service model
Published on 10 February 2021
Finland
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
Vaatepuu encourages women to invest in quality and lending, rather than quantity and buying the clothes. Vaatepuu clothing rental wants to create lower threshold for trying out a finished design. By growing the utilization rate of clothes and keeping them in use as long as possible, Vaatepuu offers sustainable alternative to fast fashion.
Clothing circulates within a network of stores, which helps maintain the growing customer interest in clothing rental. The customer buys points of wanted amount and can then borrow clothes accordingly. Clothing rental member can apply for clothes and accessories for a loan for a couple of weeks, after which they can exchange them for new products. With this logic, Vaatepuu starts to make a profit on a garment when it has been rented for an average of 3-4 months. The most essential stakeholders are Finnish clothing brands, the laundry service company SOL as well as the companies taking care of the franchising stores in Turku and Jyväskylä.
The main target group are approx. middle-aged women who want to dress more responsibly and try out different styles.
Vaatepuu lends both domestic and foreign quality brands. The clothes often come directly from the designers and ways of cooperation is versatile. Vaatepuu and laundry service SOL have entered into a partnership for the return of clothes. If customer also washes clothes at SOL, they will get 20% discount and the 10 € shipping fee is free.
Clothing circulates within a network of stores, which helps maintain the growing customer interest in clothing rental. The customer buys points of wanted amount and can then borrow clothes accordingly. Clothing rental member can apply for clothes and accessories for a loan for a couple of weeks, after which they can exchange them for new products. With this logic, Vaatepuu starts to make a profit on a garment when it has been rented for an average of 3-4 months. The most essential stakeholders are Finnish clothing brands, the laundry service company SOL as well as the companies taking care of the franchising stores in Turku and Jyväskylä.
The main target group are approx. middle-aged women who want to dress more responsibly and try out different styles.
Vaatepuu lends both domestic and foreign quality brands. The clothes often come directly from the designers and ways of cooperation is versatile. Vaatepuu and laundry service SOL have entered into a partnership for the return of clothes. If customer also washes clothes at SOL, they will get 20% discount and the 10 € shipping fee is free.
Resources needed
The company has received small public Innovation funding from Business Finland. In addition, the company has been part of the publicly and privately funded Telaketju network.
The entrepreneur hired the first 2 employees in 2018. Personnel in 2019: 4 employees.
The entrepreneur hired the first 2 employees in 2018. Personnel in 2019: 4 employees.
Evidence of success
Since its establishment in 2013, the company has increased its number of stores from one to five in different cities around Finland (2 of them franchising). The sales have grown from 22 000 euros in 2016 to more than 200 000 euros in 2019.
Potential for learning or transfer
As the company has already successfully expanded its business to cover the five largest cities in Finland, the model can be copied and transferred in other cities and regions.
The business is a growing branch of the future and mentally very rewarding. The branch is still rather small and it requires a lot of long-term work and further concept development to acquire proper financial results.
The business is a growing branch of the future and mentally very rewarding. The branch is still rather small and it requires a lot of long-term work and further concept development to acquire proper financial results.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
Vaatelainaamo Vaatepuu Oy
Finland
Etelä-Suomi
Contact
Senior Advisor