Shali

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On December 14, 2015, Shali commented on 40K – a sustainable approach to delivering impact :

Hi Jesse – wow, what an interesting model! I find it very clever that they are making parents pay an affordable price. As we’ve discussed in Marketing, paying nothing vs. something targets entirely different set of customers and expectations. It is immensely important to engage parents, which directly correlates to student performance, and I think this model helps to tie parent accountability to the program and therefore will result in more successful education outcomes.

Also, I’m surprised that the Globers are paying to be involved in these types of programs (unlike other similar programs in U.S, which the organizations pay “volunteers” a stipend). One concern is that, the sustainability of the program is highly dependent on revenue source from Globers, a completely different model and beneficiaries from 40K. It is working well at the moment but is this sustainable going forward, especially if they want to accelerate growth of 40K to benefit more students? Are Globers comfortable that their money is going to very unrelated program with completely different set of beneficiaries?

On December 14, 2015, Shali commented on Everlane: Radical transparency in a shrouded fashion industry :

Khaaaan!! very interesting post – Everlane definitely led the transparency movement in the fashion space!

Given the simplicity of designs of their clothing, it feels like Everlane creates more value as marketer / online-retailer than a typical fashion business. They’ve been rolling out and experimenting with different retailing models including pop-up stores, one-hour deliveries, and limited-edition lines.

Currently, they have limited collection with minimalist designs, which is on-point with the current fashion trends, as fashion trends change over time, how do you foresee Everlane align and/or stay ahead of this change? Do you foresee Everlane outsourcing design and focus on manufacturing and delivering part of the value chain?

Elena – this is great post and Monica hit right at the heart of the issue of rising complaints of customers showing up to the event with same dress.

In addition to that, I found your argument about the unsuccessful roll-out of unlimited subscription model very interesting. From personal experience, one of the issue was the difficulty of getting access to the unlimited program. I had to wait 6 months to get off the wait-list and that significantly reduced my interest in the program. In addition, the selection is very limited for unlimited customers – not all dresses and accessories are available for shipment. I think this really undermines their customer promise and reduced value of the program.

Currently, they are requiring new enrollments to lock-in for 6 month / 1 year subscription, but if they don’t deliver excellent customer value, I feel it will be extremely hard to keep customer retention. It might be better for them to open up the entire selection, provide flexibility in cancellation, and if needed raise price in order to provide best customer experience.