Seems like an incredible model! I’m really impressed with the other applications they’ve identified to leverage their technology, and that they’re expanding their revenue streams by licensing the technology in markets where they haven’t already established themselves. I’m curious to know how they’re able to enforce the “life improvement” requirement for loans from the core business, seems like it could be difficult. I’m also interested to know if they’re exploring the possibility of bringing this concept to developed markets, there are definitely trustworthy people with little access to credit in the US!
Definitely an interesting business! My main concern relates to the network effect portion, I can definitely see the impetus for fashion bloggers and designer brands to register, but it seems like it could be asking too much of many consumers. Fashion bloggers on Instagram often include the brands featured in an image in their comment on the picture, I’m worried that this is convenient enough for people who may be interested in buying something from only 1-in-10 or 1-in-20 images that they like (and in fact an email for every liked photo could quickly become annoying if you’re an Instragram power user). Would be interested to see how their consumer base has grown since launch!
Great post! It seems like the vertical integration really helps them offer an appealing value proposition to customers. My only concern is that they’re not able to reach a particularly wide market, and I’m curious to know how a consumer over 35 or 40 perceives the hassle of signing up online vs. continuing their established purchasing pattern. It would be interesting to see how Harry’s market share / customer base has evolved since it launched!