Market(ing) Opportunities
Market(ing) Opportunities refers to the strategy and approach used by fashion businesses to generate income and monetize their products or services. It involves determining how users will pay for the value they receive, whether it’s through traditional monetary transactions, subscriptions, memberships, licenses, rentals, or lease constructions.
Money-over-the-counter
The most common revenue model is the traditional money-over-the-counter approach. This model involves customers directly purchasing products and paying for them at the time of the transaction. Users typically use cash, debit or credit cards, or other electronic payment methods to complete the purchase. This model is convenient for both users and businesses, as it allows for immediate payment and exchange of goods.
Subscription-based model
Fashion businesses can adopt a subscription-based revenue model where customers pay a recurring fee in exchange for regular access to products or services. This model is commonly used in fashion rental services, where users pay a monthly or quarterly subscription fee to rent clothing items. Subscription-based models provide a consistent revenue stream and allow businesses to build long-term relationships with users.
Membership model
Fashion businesses can implement a membership-based revenue model, where users pay a one-time or recurring fee to become members and gain access to exclusive benefits. These benefits may include early access to new collections, special discounts, personalized styling services, or other perks. Membership models create a sense of exclusivity and can foster user loyalty.
Licensing model
In the fashion domain, a licensing revenue model involves granting the rights to use a brand, logo, or design to another company in exchange for licensing fees or royalties. Fashion brands may license their intellectual property to manufacturers, retailers, or other entities to produce and sell products under their brand name. Licensing models can generate additional revenue streams and help expand brand reach without directly managing manufacturing or retail operations.
Rental or lease constructions
Some fashion businesses adopt revenue models based on rental or lease constructions. This can involve leasing out retail spaces to other brands or businesses, renting out products or spaces for events or photo shoots, or offering leasing options for high-value items such as designer handbags or jewelry. Rental or lease constructions provide alternative revenue sources and can leverage underutilized assets.
E-commerce and online marketplaces
With the growth of e-commerce, fashion businesses can generate revenue through online sales platforms and marketplaces. This revenue model involves selling products directly through a company’s own e-commerce website or participating in online marketplaces such as Amazon, eBay, or Etsy. E-commerce revenue models offer global reach, 24/7 accessibility, and the potential for a wide user base.
Advertising and sponsorship
Fashion businesses can explore revenue models that involve advertising and sponsorship. This may include partnering with other brands for co-branded collaborations, sponsored content on social media platforms, or featuring third-party advertisements on their website or digital platforms. Advertising and sponsorship revenue models leverage brand partnerships and audience reach to generate income.
It’s important for fashion businesses to carefully consider their revenue models to align with their target market, value proposition, and overall business strategy. Each revenue model has its advantages and challenges, and businesses may adopt a combination of models to diversify their income streams. By selecting the right revenue model, fashion companies can effectively monetize their offerings, optimize profitability, and drive sustainable growth.
Case studies
Mud Jeans – Lease A Jeans circular denim model
Mud Jeans, a Dutch denim brand, uses a “Lease A Jeans” model where users pay a monthly fee to use jeans and can return them for repair, reuse, or recycling. This shifts value creation from one-off sales to ongoing service-based relationships, opening new market segments around access, durability, and circular storytelling rather than volume-driven fast fashion.
Project link
Rent the Runway – Subscription fashion rental platform
Rent the Runway operates a subscription-based designer fashion rental service, allowing users to access rotating wardrobes instead of owning garments. By marketing “access over ownership” and leveraging data-driven personalization, the company opens new markets for designer fashion among users who value variety and sustainability, while monetizing garments multiple times across their lifecycle.
Project link
Patagonia – Worn Wear circular storytelling and resale
Patagonia’s Worn Wear program invites users to trade in, repair, and buy used Patagonia garments, integrating repair events, storytelling, and resale into its core brand narrative. This creates new revenue from pre-owned products while deepening loyalty through community events and narratives about product longevity and environmental impact.
Project link
Vinted – Peer-to-peer second-hand marketplace
Vinted is a peer-to-peer digital marketplace dedicated to second-hand fashion, enabling users across multiple European markets and North America to buy, sell, and swap garments. Its platform-centric model turns existing wardrobes into inventory, creating new cross-border markets for pre-owned fashion and normalising resale as a mainstream shopping channel.
Project link
Vestiaire Collective – Global pre-owned luxury platform
Vestiaire Collective operates a curated marketplace for authenticated pre-owned luxury fashion, combining consignment, expert authentication, and global logistics. By positioning resale as aspirational and safe, the platform opens new markets for luxury access, extends product lifetimes, and provides brands and users with a monetizable secondary market aligned with circular-economy goals.
Project link
References
Ostermann, C. M., Nascimento, L. S., & Zen, A. C. (2021). Business model innovation for circular economy in fashion industry: A startups’ perspective. Frontiers in Sustainability, 2, 766614. https://doi.org/10.3389/frsus.2021.766614
Wu, K.-S., & Lee, Y.-L. (2025). The effects of consumption value and greenwashing perception on purchase intention of sustainable fashion products. Sustainability, 17(10), 4278. https://doi.org/10.3390/su17104278
Theocharis, D., & Tsekouropoulos, G. (2025). Selling sustainability: How branding drives sustainable consumption. Sustainability, 17(8), 3459. https://doi.org/10.3390/su17083459
Amed, I., & Berg, A. (2021). The state of fashion 2021: Finding promise in perilous times. McKinsey & Company & The Business of Fashion. https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion
Ellen MacArthur Foundation. (2017). A new textiles economy: Redesigning fashion’s future. Ellen MacArthur Foundation. https://ellenmacarthurfoundation.org/a-new-textiles-economy