Building the business model around additive
manufacturing in the fashion industry
A conceptual study on business model structures in light of additive
manufacturing for generating future success as an enterprise operating in the
fashion Industry.
Kristi Out- 11384743
UvA University of Amsterdam- Faculty of Economics and Business Administration MSc Business Administration, specialization in entrepreneurship and management in the creative industries
Supervisor: Ieva Rozentale
Application January, 2017 – Submitted June, 2018
Although the interest of researchers in 3D printing is great, information about business models around additive manufacturing within the Fashion Industry is limited. 3D technology will transform the whole Industry with profitability for consumers, manufacturers and designers. However, the opportunities and threats for fashion companies by shifting from traditional manufacturing to additive manufacturing remains unclear. Therefore, guidelines for a successful business model for commercialization of additive manufacturing should be established. Thus, managers and entrepreneurs have clear insights on how to successfully participate in the fashion industry by the adaptation of the evolutionary technology of 3D printing. The literature has shown that there are opportunities at different aspects of fashion industry’s business models to take advantage of additive manufacturing. The business model components: value proposition, - delivery- capturing, - communication and creation are used to highlight the changes that have or can occur in the business model by making use of additive manufacturing. But how can managers and entrepreneurs make sure that they are implemented successfully? In order to examine that, case studies of four fashion companies: Timberland, Adidas, Mesh Lingerie and Continuum Fashion have been researched to verify the findings by received literature. The case studies led to finding other relationships and have been used to build on more refinement of the existing theory. This business model truly works on a practical level when fashion companies focus on the business model innovation instead
of being blindsided by the new technology of 3D printing. Then the chance arise that they can become the winners of tomorrow.
Additive manufacturing, Business models, Fashion Industry, Future perspectives, Value Drivers, 3D printing.
Statement of Originality
This document is written by Student Kristi Out, who declares to take full responsibility for the content of this document.
I declare that the text and work presented in this document is original and no sources other than those mentioned in the text and its references have been used in creating it.
The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.
Table of Content
Abstract ... 1
Statement of Originality ... 3
1.0 Introduction ... 5
1.1 Introduction research problem and question ... 5
1.2 Research structure ... 6
2.0 Methodology ... 7
2.1 Literature review for building the framework ... 7
2.2 Abductive approach ... 7
2.3 Case studies ... 8
3.0 Literature Review ... 9
3.1 From Traditional manufacturing towards additive manufacturing within the fashion Industry ... 9
3.2 Which components in the business model are relevant for creating value in the Fashion Industry using 3D printing? ... 14
3.2.1. What is a business model? ... 14
3.2.2. Which elements are crucial when implementing additive manufacturing? ... 15
2.3 Identify the effects of 3D printing in the manufacturing process on the identified business model. ... 18
2.3.1. Identify the different stages of additive manufacturing ... 18
2.3.2. The Effects of 3D printing ... 18
4.0 Results ... 30
4.1 Case studies ... 30
4.1.1. Timberland. ... 30
4.1.2. Adidas. ... 32
4.1.3. Mesh Lingerie ... 35
4.1.4. Continuum Fashion Company ... 36
4.2 Cross-case comparison ... 39
4.3 Discussion ... 41
4.4 Missing information ... 42
5.0 Conclusion ... 43
6.0 Limitations and Future research ... 45
6.1 Limitations ... 45
6.2 Future research ... 45
7.0 Bibliography ... 47
1.0 Introduction
1.1 Introduction research problem and question
Evidence has shown that 3D technology can be defined as one of the useable tools making mass personalization possible within the Fashion Industry. Due to on-demand manufacturing and the implementing CAD1 models and standards, mass personalization is not only possible without any demand limits mentioned, but is also cost efficient, effective and satisfies the consumers preferences. Over the past few years, interest amongst experimenting with digital technologies increased in the field of fashion (Statista,2014). Famous designers like Iris van Herpen and Karl Lagerfeld and their labels have begun presenting 3D printing collections on the runway. Also the number of online 3D printing service platforms like Shapeways have increased enormously (Shapeways , 2018 ). The main purpose of using 3D printing in the fashion industry is to create prototypes, proof of concept and to support the production process (Statista , 2017 ).
Even though the fashion industry has taken 3D printing for their production process into consideration, little is known about how to successfully implement this technology for
generating future business success. The possibility of direct production of physical objects by design data, opportunities of free design, development of consumer demand and the
development of new products allows to strengthen great opportunities for new business models (Mellor, Hao and Zhang, 2014).
So far, the research has shown that the technology enables much more value to be created but capturing this value can be exceptionally challenging because additive manufacturing allows private users to produce their own products. Those upcoming prosumers create a threat as the ease of market entry is becoming more accessible (Birtchnell and Urry, 2013). This is further enhancing the competitive threat proposed by additive manufacturing for established firms (Weller, Kleer and Piller, 2015).
Although additive manufacturing has the potential to gain advantages in the fashion industry, there are no scientific studies available developing the scenarios about the changes in the business model. “Future research could include case studies about designers or fashion
1 CAD software: Computer-Aided Design which is a 3D modelling program in order to quickly fabricate a physical part of the object (Mahindru and Mahendru, 2013).
companies and how they use 3DP for the fashion Industry” (Vanderploeg, Lee and Mamp,
2016: 8). The main objective is to close this gap, addressing one core research question: How to successfully build a business model around additive manufacturing in the fashion industry for succeeding within the future. Business model design is vital for successful
commercialization of new technology as it provides a new guideline for fashion companies about the benefits, uses, and challenges of 3D printing in regards to the commercialization.
By using case studies of four fashion companies, this paper examines how managers and entrepreneurs make sure they implement additive manufacturing successfully. The results support the findings by academic research. By evaluating the value elements: value proposition, -delivery, -capturing, -creation and –communication, that the business model communication, truly works on a practical level.
1.2 Research structure
Within the first part of the thesis, I discuss how the shift towards additive manufacturing is changing the fashion industry by making use of academic journals. This includes what this shift means for the current business models used in the industry. Second, I review the concept of the business model used in the industry of additive manufacturing in order to select the most important business model components to examine in the context of 3D technology in the fashion industry. These components are further analysed with respect to the different stages of the manufacturing process: rapid prototyping, rapid tooling, direct manufacturing and home fabrication. In order to show how the business model adaptation, with respect to additive manufacturing, at each stage can successfully be implemented, I used the case examples of two well-known firms: Timberland and Adidas and two start-ups: Mesh Lingerie and
Continuum Fashion. The multiple case studies are based on desk research, including sources of company websites, available interviews, media commentary and a few academic journals. As a result, I am building on the existing theory by making use of an abductive approach (Dubois and Gadde, 2002). An abductive approach is a mixture of an inductive- and deductive approach to test the grounded theory with the confrontation of real life. This resulted in
finding other relationships related to the business models and additive manufacturing in the fashion industry (Dubois and Gadde, 2002). This made it possible to build upon refinement of existing theory. Finally, I highlight the main findings and contributions of this study.
Lastly, due to the abductive approach used in the research, I present the methodology after the introduction so confusion is eliminated.
2.0 Methodology
The literature has shown that there are opportunities at different aspects of fashion business models to take advantage of additive manufacturing. But how can managers and
entrepreneurs make sure that they are implemented successfully? In order to examine that, I carry out a case study of four fashion companies based on triangulated2 secondary data, using an abductive approach (Dubois and Gadde, 2002).
2.1 Literature review for building the framework
This paper strives to explore the role of the business model for generating future success in the fashion industry from early stage technology. A successful business model creates a heuristic logic that connects technical possibilities with the accomplishment of deriving economic value (Chesbrough and Rosenbloom, 2002). The research design is built upon preliminary linkages in the literature between the theory and practice of fashion companies using additive manufacturing. The usage of additive manufacturing is very new, especially within the field of the fashion industry. Therefore, the function of the literature review is to highlight the existing theory to determine the generation of new concepts and development of theoretical models.
2.2 Abductive approach
Case studies have been created to explore if the conceptual part actually is true. Besides exploring if the conceptual part is actually true, the conceptual approach was used to build upon new relationships and influenced variables of the business model. In order to do so, an abductive approach was used (Dubois and Gadde, 2002). An abductive approach can be seen as a combination of inductive and deductive approach. The ‘grounded theory’ is
systematically tested by the cases that reflect the real world. This makes it possible to create new combinations and relationships. According to Dubois and Gadde (2002), an abductive is approach is effective if “the researcher’s objective is to discover new things- other variables
2 Triangulation: “The use of different data collection techniques within one study in order to ensure that the
and other relationships” (Dubois and Gadde, 2002: 559) . Thus, abductive approach makes it
possible to stress on theory development. The main contribution of the multiple case study led to finding other relationships related to the business components, specific to the fashion Industry. Finding new relationships made it possible to build more on the refinement of existing theory. (Dubois and Gadde, 2002).
2.3 Case studies
Due to the newness of additive manufacturing and the different stages it has, finding cases, especially in the fashion industry, was challenging. The few cases that could be found were start-ups and large companies so no ‘middle-section’ of fashion companies are included. Depending on the changes in the 3D technology development stages, different aspects of the business model can be leveraged. The choice of conducting multiple case studies is based upon the strategy which indicates a rich perception of the context for researching and the processes being executed (Morris and Wood, 1991).
After extended research, the cases were selected based on the availability of information, interviews that have been done, company websites, media commentary and a number of academic journals entailing fashion companies using additive manufacturing (Eisenhardt and Graebner, 2007). The sampling method can be defined as “theoretical sampling in grounded
theory” (Glasser and Strauss, 1967: 559). This sampling method entails to arrive at an
appropriate matching between reality and theoretical constructs. As the different stages of additive manufacturing can be implemented, it is important to match the cases with the different levels of the 3D printing stage (rapid prototyping, rapid tooling, direct
manufacturing and home-fabrication). Figure 1.0, shown in the appendices, illustrates the examples of data sources of fashion companies using additive manufacturing.
The discussion section in the results represents the cross-case comparison. Here, I propose how the different stages of additive manufacturing are going to influence the business components for the Industry. This is based upon fashion start-ups and large firms.
The four selected case firms exhibit the complete range of 3D printing stage developments. Every case study entails a different level of additive manufacturing. I also included different sizes and forms of fashion companies; shoe market, lingerie market and apparel market. This was done to cover the whole fashion industry and not only one segment. It is important to
note that some of those companies also manufacture jewellery, but this is not their main product.
Knowledge on firm size, applicability to different development stages of 3D printing and changes in patterns in the business model might generate insights for my understanding of the appropriate opportunities and challenges for managers and entrepreneurs to expect when applying additive manufacturing in their fashion company.
3.0 Literature Review
3.1 From Traditional manufacturing towards additive manufacturing within the fashion Industry
Within the past few years, the usage of 3D printing have been increasingly growing within a number of industries, including the fashion Industry (Vanderploeg, Lee and Mamp, 2016). 3D printing, also known as additive manufacturing, refers to a technological procedure that transforms digital files into solid objects (Mavri, 2015). Those files are created via computer-aided design software in order to design the object that needs to be printed. Once the design is created, the 3D printer is able to print all the layers and place the one on top of the other. As a result, the solid object is printed (Mavri, 2015).
When taking the fashion industry into account, several changes has occurred in the production process. Illustrated in Figure 2.0, Vanderploeg et all. (2016) established the general design and production process of 3D printing methods (Vanderploeg, Lee and Mamp, 2016). Hereby, the changes within the production process have been created when the implementation of additive manufacturing is applied (Vanderploeg, Lee and Mamp, 2016: 3). It is important to bear in mind that the usage of 3D printing in the Fashion Industry is different from 3D production processes used in other markets. Firstly, by using the right software, named the CAD software, artists are able to improve, diminish and include specific size parameters for their consumers (Vanderploeg, Lee and Mamp, 2016). Furthermore, what is specifically important for 3D printing used in the fashion industry is that the products can be improved as a finished good, for instance be modified via dyeing or painting (Yap and Yeong, 2014). This is crucial within the fashion industry as it reflects the personality and preferences of
consumers. As research of Out (2016) has shown, consumers are highly attached at
expressing their own personality by their clothing, accessories and taste in style and designs. Not only does it reflect the characteristic of the consumer, they also find appearance highly important as this reflects to the consumers’ perceptions of value (Yap and Yeong, 2014). At last, even though the 3D printing technology is growing in possibilities, it is still difficult to print large accessories or an entire garment printed in one time. Therefore, the object printed in different parts, which is completed afterwards (Reilly , 2014).
Figure 2.0: General design and production process of 3D printing methods (Vanderploeg, Lee and Mamp, 2016: 3).
Over the past few years, research amongst the usage of 3D printing within the production process of a company has been extended. Research by Out (2016) focused on the eligibility of using 3D printing within the production process for generating mass-customization. As a result, the research shows several changes within the changes of fixed and variable costs, changes within the value chain, consumer demand and corporate social responsibility
The summary of those changes are explained within figure 3.0 in the appendices (Out, 2016: 46-38).
Besides the research of Out (2016), Vanderploeg et all. (2016) has researched the five possible 3D printing methods which are able to implement in the fashion industry (Vanderploeg, Lee and Mamp, 2016) (Out, 2016). Due to the five possible 3D printing
methods combined with the availability of materials, the printing process, and the competitive advantages illustrated in figure 4.0, 3D printing has been implemented more and more within the Fashion industry. Different categories which fall within the fashion industry are using additive manufacturing within their production process.
Firstly, additive manufacturing has been used within the jewellery marketplace. Rings, bracelets and necklaces are fabricated via additive manufacturing, making the 3D printed jewellery an emerging market (Mavri, 2015: 142). Designers send their design to online web platforms like Shapeways3, and those 3D printing suppliers print the necessary objects, based on the orders that have been sent.
Figure 4.0: Table representing the five applicable 3D printers able to use in the Fashion Industry (Vanderploeg, Lee and Mamp, 2016).
3 Shapeways: company providing 3D printing service and 3D printers. They mainly operate as a service provider for printing solid objects on demand (Shapeways, 2017).
Furthermore, 3D printing has infiltrated the shoe marketplace as well. Fashion companies such as Nike and Timberland have been using 3D printing technologies to develop prototypes, customisable products and works of haute couture, that provides consumers an interactive choice-driven experience. By making use of the 3D printing technique, Nike was able to shorten their time of creating prototypes and final production from two to three years to six months and prove the success of the 3D printed shoes (Nike, 2013) (Fitzgerald, 2013) . They proved this by observing the athlete Michael Johnson and created a shoe for him. As a result, Michael Johnson ran the fastest time (Nike, 2013) (Fitzgerald, 2013).
Not only in the jewellery- and shoe marketplace 3D technology has infiltrated. Also, Haute Couture Fashion designers are using additive manufacturing as well to communicate that 3D technology can be used for innovative fashion designs. For instance, designer Catherine Wales is a fashion artist creating masks, helmets and corset produced via 3D printing (Vanderploeg, Lee and Mamp, 2016: 3). The designer also creates jewellery available to consumers and prints them on-demand according to each individual body-measurements through the use of 3D body scanners (Vanderploeg, Lee and Mamp, 2016).
Moreover, mass-market fashion brands are also implementing 3D printing within their production process. Their main reason to do so is to produce customised products for consumers (Nayak and Padhye, 2015). The fashion company named Continuum offers consumers to enter their body measurements resulting in a perfectly fitted bathing suit (Vanderploeg, Lee and Mamp, 2016). Those bathing suits are printed via their partner Shapeways, which are using solid nylon material resulting in a fabric-like feel product with waterproof properties (Cuzella, 2015). Besides the bathing suits, Continuum also offers 3D printed jewellery and women’s shoes, whereby the shoes are printed in a rubber material and the jewellery with steel power and nickel in order to create a luxurious finish (Fitzgerald, 2013) (Vanderploeg, Lee and Mamp, 2016) (Continuum Fashion , 2014).
The usage of 3D printing allows designers to improve their product design by offering personalized and unique items to their consumers. As Vanderploeg et all. (2016) already mentioned, 3D printing becomes more and more popular amongst the Fashion Industry due to the advancements in 3D printers whereby the possibility of fabric-like and breathable
materials has been created resulting in flexible and lightweight products (Vanderploeg, Lee and Mamp, 2016).
The research of Vanderploeg et all. (2016) provides fashion companies knowledge of the most applicable additive manufacturing printer for their specific fashion segment
(Vanderploeg, Lee and Mamp, 2016: 6). Every 3D printing method has been compared based on product categories, printing size, challenges and materials whereby different brands and designers have utilised each 3D printer (Vanderploeg, Lee and Mamp, 2016). As a result, fashion designers are able to enhance the knowledge of selecting the appropriate 3D printer for their product category in order to achieve the highest quality, desired size and materials. Not only the desired appearance of the object is one of main drivers using the specific
method, also the retail cost of 3D printed accessories and garment has a crucial factor (Mavri, 2015).
While many opportunities can be identified, fashion companies have to equally consider the challenges of the complex 3D printing process. This might need collaboration with experts for the transition of skills and knowledge. Since traditional pattern making is not used, designers need to define how many separate pieces should be generated in order to develop the final product for sufficient flexibility and movement (Strickfaden, Stafiniak and Terzin, 2015).
When referring to the clothing segment within the fashion industry, one of the main
challenges for designers is to ensure that their piece of garment is functional and wearable as 3d printing materials do not have the same properties of fabrics (Senanayake, 2015).
However, due to the Carbon3D machine, flexibility is much easier generated. The usage of 3D printers is rapidly growing amongst experts, and therefore just a matter of time when a variety of textile fibre printing materials will be introduced. This allows 3D printing materials to become identical to textiles (Rosenau and Wilson, 2014). Nowadays, companies that enhance the printing software’s and techniques already offer different colouring options which is favourable for consumers (Binns, 2015).
The next step concerning the usage of 3D printing could become in-home printing. Hereby consumers own a 3D printer at home and starts using them in their homes (Mavri, 2015; Cuzella, 2015; Berman, 2012; Out, 2016). Within 2013, already 62 per cent of American respondents thought people should have the right to use 3D printing in their home for private use (Statista , 2013). This leads to an evolvement of the role of designers as they would sell data files with the 3D design model online. In return, consumers will pay for the digital files
which will be printed at home. According to Vanderploeg et all. (2016) “This might lead
towards a shift from a product-driven landscape towards an information-driven economy”
(Vanderploeg, Lee and Mamp, 2016: 8). This also involves some disadvantages concerning the infringement of designers’ and fashion brands’ intellectual property4 (Cuzella, 2015; Doherty, 2012; Sedhom, 2015). As designers and companies might face a loss in sales due home fabrication amongst consumer the importance of a good business model becomes incredibly important in order to be able to produce using additive manufacturing (Out, 2016).
3.2 Which components in the business model are relevant for creating value in the Fashion Industry using 3D printing?
3.2.1. What is a business model?
The business model construct has become a popular subject for many academics, whereby many diverse definitions of the concept have been proposed. Baden-fuller and Haefliger (2013) examine the business model construct to understand the relationship between business model- and technical innovation (Baden-fuller and Haefliger, 2013: 419). As this study focus on the usage of additive manufacturing, the examination of Baden-fuller and Haefliger (2013) is taken into consideration in order to understand the concept of business models used in additive manufacturing.
There is no general agreement concerning the definition of the business model within academic literature, but in its highest definition, a business model entails to describe how a firm deliver, creates and capture value (Osterwalder,2004; Zott, Amit and Massa, 2011; Troxler and Wolf, 2017). ‘Business models can be seen as a tool used for companies in order
to set firm and industry level strategies by understanding the value drivers’ (Benson-Rea,
Brodie and Sima, 2013: 717). Besides academic literature, also scholars came to the consensus of this definition (Baden-fuller et all., 2010; Rappa, 2004; Govindarajan and Trimble, 2005). According to Lindgreen et all. (2012) and Beverland (2012), value creation
4 In order to diminish the copyright infringement, the Legal Information Institute wants to implement the
“Sui Generis Regime” (Legal Information Institute , 2015). This entails a form of “legal protection that
exists outside typical legal protection due to changes over the years” (Out, 2016:18). This law would
significantly be addressing the market of 3D printing and the digital design files in order to increase the protection for fashion businesses implementing 3D technology within their manufacturing process (Out, 2016; Doherty, 2012).
needs to be controlled, created and managed via the context of interactions (Beverland, 2012) (Lindgreen et al., 2012).
Business models reflects management’s hypothesis about the needs of consumers, how they want it, and how the company can coordinate to best meet those needs in order to get paid doing so and generate profit (Teece, 2010: 172). This is translated in business model elements to define the approach by which the business delivers value to its consumers, allure
consumers to pay for value and change those payments to profit (Teece, 2010: 173). When technological innovation is implemented in the enterprise, those business elements
automatically change as well (Teece, 2010: 173). Additive manufacturing can be seen as a technological innovation which leads to changes in the production process and an extension of the product portfolio (Troxler and Wolf, 2017 ). This leads to a different way of creating value, value delivery and value capturing (Cruickshank, 2014). Thus, depending on the context, some aspects of the value drivers become more relevant than others. This relevance will be discussed in section 3.2.2.
3.2.2. Which elements are crucial when implementing additive manufacturing?
Implementing additive manufacturing in fashion companies will fundamentally influence the processes in production, supply chain design and consumer behaviour. This results in
uncertainty amongst the changes in the field of fashion. More importantly, the rise of uncertainty how to manage those changes increases the need for the concerned parties to implement the right business model. (Branson et al., 2002). The business model allows managers and entrepreneurs to follow and understand the different directions of possible opportunities and challenges of additive manufacturing.
As a technology, 3D printing will certainly lead to value creation (Priem, 2007). As the products manufactured by the wishes of the consumer, the worth of consuming a particular product increases (Pitelis and Teece, 2009). Notwithstanding, the important question is how firms capture this value. Therefore, it is important to highlight how business models need to evolve in order to capture value (Pitelis and Teece, 2009).
For creating success, it is important to establish a business model in relation to flexibility in order to respond to end-customers. This will eventually result in creating and capturing value (Zott, Amit and Massa, 2011). However, the context of a firm’s strategy influences the choice
of a business model as it focuses on creating, capturing and delivering value (Baden-fuller and Morgan, 2010) .
Not only those three value drivers are important, also the complementary assets become a crucial aspect of the business model due to the rise of online service platforms. Toxler and Wolf (2017) have been investigating the fundamental elements and changes within the business model of digital maker-entrepreneurs5 in open design. Within their research, they have made use of cases, whereby two include 3D printing. “ Digital maker-entrepreneurs …
they promote their capabilities in designing and 3D printing on brokering platforms such as Makexyz and 3D-hubs” (Troxler and Wolf, 2017 : 808). This is supported by Desyllas and
Sako (2012). The survival in the high rivalry market of the fashion industry depends on
“whether the innovator builds a strong position in specialized complementary assets, which are the 3D printers and the suppliers, and is capable of reconfiguring them over time in line with changes in the market environment” (Desyllas and Sako, 2012: 101).
Not only complementary assets overcome the obstacle of survival, also a quick response rate and reduced lead-time are important in order to react fast to the market trends (Bhardwaj and Fairhurst, 2010). Both the complementary assets and fast reaction to the fashion market lead to capturing value (Bhardwaj and Fairhurst, 2010)(Desyllas and Sako, 2012).
According to Desyllas and Sako (2012) “The choice of an appropriate business model is seen as a crucial business decision due to the post-industrial rise of the knowledge economy and digital technology” (Desyllas and Sako, 2012: 101). Additive manufacturing is a new
technology for the fashion industry, entailing different business components for generating future success. This thesis provides the most suitable business model as the fundamental basis for fashion companies. It encompasses how fashion companies should rearrange their systems and processes to support the new products and/or services (Chesbrough and Rosenbloom, 2002). Consequently, the business model can be seen as the fundamental tool of value creation for the firm and its stakeholders (Chesbrough, 2010).
5 Digital maker-entrepreneurs: high-tech do it-yourselves, who are democratizing access to the modem means to make things and engage this in entrepreneurial activities. They are operating in a market whereby the combination of accessible digital manufacturing technology with the connectivity of the Internet serves as a generative mechanism for entrepreneurial activities (Troxler and Wolf, 2017: 807).
After critically analysing academic literature whereby several authors discussed the important elements of a business model, Rayna and Stiukova (2016) established the changes in the business model innovation when taking additive manufacturing into consideration. After critically researching the changes by Rayna and Striukova (2016), the most applicable elements are : value proposition, value creation, value capture, value communication and value delivery (Rayna and Striukova , 2016). By focussing on those elements, the most suitable business model for fashion companies that implement 3D technology in their production process can be built. The key components are illustrated in figure 5.0 shown below.
Figure 5.0: most applicable business model for business innovation within the Fashion Industry using additive manufacturing (Rayna and Striukova , 2016: 217).
2.3 Identify the effects of 3D printing in the manufacturing process on the identified business model.
2.3.1. Identify the different stages of additive manufacturing
Within additive manufacturing, different stages occur. Those stages refer to the technology development of additive manufacturing (Tongur and Engwall, 2014) .The first level of additive manufacturing is rapid prototyping. This refers to the development of creating new ideas or designs for establishing the example of the perfect product. When making use of rapid prototyping using 3D printing, the technology enables companies to rapidly test new ideas and designs in order to increase the time frame of product innovation (Teece, 2010).
Within the second stage of the technological development of 3D printing is rapid tooling (Campbell, De Beer and Booysen, 2007). Campbell et all. (2007) defines rapid tooling as “a
process employing additive, subtractive and pattern-based processes, alone or in
combination, to generate functional productive devices in a timely and cost effective manner”
(Campbell, De Beer and Booysen, 2007: 2). Rapid tooling is used to produce functional prototypes on a rapid time scale in order to achieve an earlier product launch date. Rapid tooling uses the end-use material for the production and sometimes serves as a temporary production tooling (Rayna and Striukova, 2016 ).
The third stage entails direct manufacturing, whereby additive manufacturing is used to directly manufacture the end product. The last stage is home-fabrication, whereby consumers use in-home printers to print the digital files they have bought on online platform services (Mavri, 2015).
In order to understand the interplay between additive manufacturing and business models, each component should be critically reviewed in order to identify the adoptions of 3D printing in the manufacturing process. As a result, additive manufacturing will create competitive advantage.
2.3.2. The Effects of 3D printing
As discussed in section 2.3.1., different stages need to be considered in order to provide a valid and reliable research. Therefore, this section will be divided into rapid prototyping, rapid tooling, direct manufacturing and home fabrication (Rayna and Striukova, 2016 ).
On balance, the following changes in the business model occurred due to the use of additive manufacturing within the production process of a Fashion Company.
2.3.2.1. Rapid Prototyping
Within the first stage of 3D printing, additive manufacturing only had a significant effect on value proposition. Companies were able to release products more quickly, leading towards a positive change in the product offering. Besides, this also led to a shift in the priority of services alongside traditionally prototype services creating a positive effect on service offerings. However, rapid prototyping did not have significant impact on the other business components as 3D printers were very rare and expensive combined with an access difficulty (Rayna and Striukova , 2016: 217-218).
On the other hand, 2007 was the year where online platforms offered 3D printers at a much lower cost in combination with the possibility of outsourcing instead of owning 3D printers for themselves. As a result, access of the usage of additive manufacturing increased
enormously and the component value proposition positively changed on a larger scale. Besides, the usage of rapid prototyping increased the value creation due to the change of service into complementary assets. Online services companies like Stratasys (MarketLine, 2015), MakerBot , 3D systems (MarketLine, 2015) and ExOne (ExOne, 2014) are the four most leading companies who are offering the applicable 3D printers and services most
suitable for the Fashion Industry (Out,2016). The detailed information of those companies are illustrated in Figure 6.0, shown in the appendices. It entails a benchmarked SWOT by Out (2016).
Moreover, changes in the cost structure positively influence value capturing. By making use of rapid prototyping in the fashion industry, designers are able to establish design prototypes more cheaply and quickly due to reduced lead-time, material costs, material usage and labour time (Cuzella, 2015: 372). Also artists and development managers are able to closely work together resulting in a more efficient way of creating prototypes (out, 2016). As rapid
prototyping has become affordable, it changes the cost structure. However, it should be noted that “prototyping costs are usually small in comparison to the overall cost of production” (Rayna and Striukova , 2016: 7).
One of the downside is the fact that the number of core competitors can increase due to the lower level of entry and cheap access to prototyping. This is due to the decreasing price of 3D printers. For instance, creative artists might begin with 3D experimenting by creating
jewellery. Therefore, other companies manufacturing jewellery get competitors that they did not previously have (Mavri, 2015) (Rayna and Striukova, 2016 ).
On balance, rapid tooling has a slightly effect on the business model, especially concerning the value proposition. However, the overall effect of the usage of additive manufacturing in the rapid prototyping technological stage is moderate. Figure 7.0 highlights the changes in the business model o due to the use of additive manufacturing within the production process of a Fashion Company.
2.3.2.2. Rapid Tooling
Within the second stage, rapid tooling, the changes within the business model can be
compared towards rapid prototyping. According to Rayna and Striukova (2016), rapid tooling is still an integral part of traditional manufacturing (Rayna and Striukova , 2016). However, rapid tooling changes one important element of the business model, namely the value delivery. This is because it enables to serve more target market segments (Rayna and
Striukova , 2016). As 3D printed tools and moulds are being produced at a higher speed and are more cost efficient, they make lower volume of production cheaper (Rayna and Striukova , 2016). Thus, fashion companies are able to adjust the production of personalized products leading towards reaching another audience as well. According to Campbell et all. (2007), the lower cost of rapid tooling enables fashion designers to create different versions of the same product at a low cost rate. This makes it to target numerous market segments at the same time.
When taking the jewellery market into account, companies are able to offer the same bracelet with alphabet letters. By integrating initials or a name on bracelets, rings or earrings can create custom-engineered products with a personal touch (Gulati, 2011).
Hereby, the changes occurring by the usage of additive manufacturing in the fashion industry are illustrated in the figure 8.0 below.
Figure 8.0: Changes in the Business model using Rapid Tooling within the company
2.3.2.3. Direct manufacturing
Nowadays, the ability of direct manufacturing by making use of 3D printing is generated. This leads to a completely reconfigured production process resulting in the emerge of new business models (Sosna, Trevinyo-Rodriguez and Velamuri, 2010: 391).
It is important to note, that at this stage, companies that are using 3D printing in their production process, mainly do this in order to leverage the unique advantage of additive manufacturing as the technology remains more expensive compared towards traditional manufacturing. So, fashion companies who are making use of additive manufacturing
implement this technology in order to leverage of the advantages. The fashion industry can be seen as a high rivalry market whereby this technique can distinguish themselves of others. Moreover, 3D printing offers fashion artists to create designs which has never been invented before, enhancing their creativity.
Firstly, 3D printing has a significant effect on the subcomponent value network, which is part of the value creation component. Direct manufacturing creates the possibility of large-scale mass customisation. 3D printing will enable consumers to personalize their style, fit and colour to their preferences, whereas now a day’s consumers cannot find well-fitted clothes and accessories within the current in-store sizing (Bae, 2015: 6). As a result, consumers engage in a co-creation process between customers and firms. Due to the active engagement of creating personalized items, consumers fulfil the role of creating more value.
Secondly, direct manufacturing has a significant impact on complementary assets, which is a sub-component of value creation. Hereby, 3D printers that fits the manufacturing
requirements, can be used regardless its location creating a wide range of manufacturing companions (Desyllas and Sako, 2012: 112). As described by rapid prototyping, fashion companies are able to make use of online service platforms like Shapeways, Stratasys and ExOne for selling their products or buying the printers applicable for their products (Out, 2016). This enables fashion companies to work with a lot of different suppliers instead of one particular factory. Moreover, fashion companies can bring back the production process to the country of origin where the products are consumed. As a result, a decline of economic
imbalances and accusation of child labour occurs (Campbell et al., 2011). Thus, the Ethos and Story communicated towards the consumers will be positively influenced.
Moreover, direct manufacturing also has a positive effect on value delivery, whereby new distribution channels will be created. Alongside the mass-produced products companies used to manufacture via traditional manufacturing, fashion businesses are also able to make use of online 3D printing platforms as mentioned before. The main advantages of using those online 3D services is because transportation costs, inventory time and physical inventory diminish. As there is a use of readily available suppliers, costly tools are not needed and the
manufacturing process will be automated. Working capital management improves as goods will be paid before being manufactured (Berman,2012; Out, 2016; Rayna and Striukova, 2016).
As the product will be manufactured on demand resulting in a payment upfront, positive cash flows arise resulting in capturing more value (Rayna and Striukova , 2016: 218-219). In addition, capturing value will become more positive for fashion companies as it adjusts the cost structure, whereby the fixed costs decrease but higher marginal costs arise. It is important
to note that this will be successful only if there is a real demand for mass-customization. Research of Out (2016) shows that the demand for customized products is relatively high, whereby consumers are also willing to pay more for customized and personalized products. Thus, we can state that the market demand is high for personalized and customized products and therefore the change in the revenue model will be positive (Out, 2016). Moreover, the level of attractiveness amongst consumers of 3D printed fashion items will increase as the products will be easily repaired due to the ease of changes within the digital file (Mavri, 2015: 143).
Also the communication channels within the company will be more efficient and effective. 3D technology has a major influence on inventory time and inventory changes. Related to inventory time, this will decrease due to the Quick response rate by implementing 3D technology. This results in an immediately response towards the upcoming trends of the fashion Industry and a decrease in forecast errors (Bae, 2015: 3) (Berman, 2012: 160). Digital files can be sent via Internet, and the use of Internet increases the level of effective
communication within the supply channel segments (Bae, 2015: 2). Therefore, stockholding time and costs will dramatically decrease. Related to inventory changes, Work In Progress6 is reduced or diminished as 3D printing manufacturing does not include intermediaries. This means that the printed object is used as a finished good and only a few raw materials are eligible for manufacturing fashion items (Mavri, 2015: 144). This leads towards more favourable cost structure.
On the other hand, additive manufacturing also carries downsides. Firstly, profit allocation can be challenging for individual entrepreneurs and SMEs7 (European Commisson,
2016).This is due to the fact that online 3D service platforms mostly want a percentage of the profits made from the particular company for which they are selling. Then the consequence arise that individual entrepreneurs and SMEs are not able to afford those percentages (Rayna and Striukova , 2016). Only when making use of their own printers, this will not be a
downside (Giesen et al., 2007). Second, one of the most critical downside that can arise is related to the revenue models. As mentioned above, direct manufacturing, using 3D printing,
6 Work In Progress refers to material that has entered the production process but is not yet a finished good (Out,2016).
lowers the barriers to enter the fashion market resulting in an increase in competitors. Thus, finding a good revenue model might become increasingly difficult (Rayna and Striukova , 2016). On the other hand, Berman (2012) argues that due to the goods being paid upfront before manufactured, working capital management improves leading to a better revenue model (Berman, 2012: 159).
Below, Figure 9.0 illustrates the changes in the business model when 3D technology is implemented used for direct manufacturing.
Figure 9.0: direct manufacturing
2.3.2.4. Home Fabrication
Similar to direct manufacturing, home fabrication will have changes within the business model but probably towards a far greater extent.
Firstly, changes within the value proposition occur whereby the volume of products and services will extent. This is because consumers will have a 3D printer at home (Rayna and Striukova , 2016). According to Statista (2013), the demand for in-home printers was already increasing in 2013. Sixty-two per cent of the respondents stated that people have the right to use 3D technology for private use, including in-home printing (Statista, 2013).
Besides, as every consumer who owns a 3D printer becomes part of the value network, the 3D printers can be generated as a complementary asset. This leads towards a positive change within the value delivery component. This is because consumers own their own 3D printer and therefore become part of the distribution channel. Therefore, even the smallest target market segment becomes economical.
On other hand, the prices of 3D printers are still high at the moment. Therefore, consumers will prefer ordering products printed from stores instead of in-home printing (Out, 2016). Even though the pricing will decrease and printers become affordable, consumers will still prefer ordering products printed from stores because they are forced to buy all necessary supplies beforehand (Out, 2016). However, this will have a positive impact on the retail shops, because the level of competency with in-house printing will be less.
The changes of the value chain when in-house printing occurs is illustrated in figure 10 (Mavri, 2015: 146).
One other change that is crucial to take into account is related to the ethos and story of fashion companies. It is general noticed that the fashion industry has been accused of child labour and other accusations. The usage of 3D printing will increase the Corporate Social Responsibility of fashion companies. Firstly, the production will be taken back towards the human beings who are consuming the product. Secondly, the level of material waste will decrease by 40%, and thirdly, the possibility of recycling the materials used arises. Those factors combined will positively boost the ethos and story of the company (Petrovic et al., 2011).
According to Rayna and Striukova (2016), implementing 3D printing within the production process of a company will create a positive feedback loop between value proposition, value creation and value delivery (Rayna and Striukova , 2016). As illustrated in figure 11, mass-customization generates a higher value creation leading towards a higher value proposition whereby more services will be provided in order to develop mass-customization further. This will be beneficial for fashion companies operating in a high rivalry market (Out, 2016). Likewise, both the cost structure- and value capture component can be further approved by the fact that solely consumers bear manufacturing and distribution costs.
Figure 11: the positive feedback loop using 3D printing within the production process (Rayna and Striukova, 2016 : 220).
Notwithstanding, due to the upcoming consumers’ involvement negative influence occurs as well. When taking value capturing into consideration, it might become extremely difficult
when consumers engage in co-creation of the products. As they design the product by themselves, it is critical to question how much they are willing to pay for the right to do so (Rayna and Striukova , 2016: 220). However, research by Out (2016) has shown that
respondents who are interested in 3D printed garment and accessories also are willing to pay more for customized and personalized products (Out, 2016). This finding is illustrated in Figure 12, shown in the appendices.
Another issue that arises is related to copyright infringement and patents. Firstly, 3D printing has established a new threat concerning copyright infringement and patents (Doherty, 2012: 365). Due to the changes in pricing of the 3D printers, publication of purchased products by consumers is increasing as the customers become manufacturers. Therefore, the Legal Information Institution argues an establishment of sui generis regime in order to increase the protection for fashion companies (Legal Information Institute, 2015).
Even though the ease of market entry will remain critical for fashion companies by the production of the products consumed by the consumers, printing at home will radically change the profit allocation and revenue models. As consumers within the production process will take an active participation role, control over the design and production will shift towards them (Fox and Li, 2012: 725).
Figure 13 highlights the changes in the business model components when in-house printing becomes part of the changing production process.
4.0 Results
In this section, the cases of Timberland, Adidas, Mesh Lingerie and Continuum Fashion are presented. The cases represented reflect the real-life confrontation with 3D printing in the production process of a fashion enterprise. It elaborates on the actual changes in the business model, focused on each individual value component. The case studies have been substantiated by referring to the value drivers that have been established in the desk research. This is
combined with the different technological stages additive manufacturing encompasses.
4.1 Case studies 4.1.1. Timberland.
Timberland is a large company who made use of rapid prototyping when this technology was in its early development stage. It is interesting to look if it is successful even though rapid prototyping was such a new technology. Furthermore, Timberland is a well-known fashion brand selling boots, shoes, clothing and accessories. For this thesis, the focus will be on their shoe market.
4.1.1.1 Introduction to Timberland
Founded in 1952, Timberland has more 240 retail shops, a global reach from America to EMEA and the Asia Pacific (VF Corporation, 2017). Besides, Timberland has expanded this reach by the availability of online purchasing in seventeen other countries, including Brazil, Japan, Italy, Singapore and Russia (VF Corporation, 2017).
4.1.1.2 Case study
When taking Timberland into consideration, they already implemented 3D printing within the production process of their shoes in 2008. By using the Spectrum Z510 Systems from Z Corps8, Timberland was able to manufacture physical models used for prototyping for an affordable price on a quick time scale. By using the 3D printing technology, they were able to reduce their product development time span with 33 per cent and their last production time by ninety two per cent (3D systems , 2009).
8 Spectrum Z510 Systems from Z Corps: A 3D printer designed to be used by design engineers in the production of early-staged 3D physical prototypes and models (Z- Corporation, 2005).
The cost for manufacturing prototypes, Timberland shifted from a price of $1200 towards a manufacturing price of $35. When taking the time span into consideration, to make the shoes takes 90 minutes whereas it used to take a week. According to the manager in the global footwear product development division of Timberland, Toby Ringdahl, it took two weeks to receive the finished prototype created by the designer and service provider. After
implementing 3D printing for creating their prototypes, the development division of Timberland is able to only press ‘print’ and the prototype will be a finished good within 90 minutes. As a result, the development cycle is shortened and they are able to adopt towards the preferences of the consumers by offering new styles that are still the trend amongst consumers. Normally, it took six months due to the outsourcing of the model development combined with a higher price.
Besides, due to the usage of 3D printing for the prototypes, engineering and marketing employees of Timberland are able to collaborate more closely and often. This results in a better work sphere and changing the culture within a business (The Max Weber Programme , 2008).
When referring the shortening of the development cycle of Timberland to the business model, the capturing value for Timberland increases because the cost structure becomes more
favourable. Firstly, due to the usage of the 3D printing technology, specifically the ZPrinter9, the cost of each prototype model has been reduced from $1000 spent on a contractor towards a $100 spent on material costs. Secondly, the traditional manufacturing process has a
development cycle whereby every prototype is designed by artisan, then manufactured by the service provider and at last need to be approved by the managers of the product development division. When the design is declined, the whole process starts all over again including material waste, which also includes costs. Now, by the usage of additive manufacturing, the communication improved between the manufacturing department, the artisan and the
managers resulting in a reduced material waste and prototype manufacturing costs of twenty per cent.
9 ZPrinter: a three dimensional printer that offers the highest-quality colour products with the largerst build volume of any 3D printer. Therefore, users are able to print very large
Furthermore, before the usage of 3D printing, Timberland outsourced their manufacturing of prototypes to Asia. Now, the travel costs are reduced by 10 percent on a yearly basis. At last, the designs are improved and realistic prototypes are manufactured whereby sales
representatives are able to adjust on a short time scale, sales have been reinforced.
Therefore, the investment of a 3D printer has been paid back in the reduced model costs, material waste of the denied prototypes, travel cost, productive design and reinforced sales and positively increased the cost structure of Timberland (proto3000, 2012).
Not only the cost structure under the value capturing element has been positively influenced, also the product offering is changing. By making use of 3D printing, Timberland is able to answer the preferences of the consumer on a quicker time scale combined with reliable quality (proto3000, 2012).
4.1.2. Adidas.
4.1.2.1 Introduction to Adidas
Founded in 1949, Adidas now have grown to one of the famous sportswear brand. The brand mainly focuses on the development of sport shoes. Adidas is the first large fashion brand using the new Carbon3D printer, whereby the midsoles of shoes are crafted with light and oxygen using digital light synthesis (Carbon, 2017). As a result, Adidas aims to create more than 100.000 pairs of this footwear by the end of 2018 (Adidas, 2017).
Adidas is the first famous brand implementing direct manufacturing for their sports footwear. Therefore, it is interesting to investigate the changes in the business model and research if other relationships occur.
4.1.2.2 Case study
Whereby Timberland uses 3D printing for the production of their prototypes, Adidas has taken the 3D printing to a whole new level. As additive manufacturing has a lot of advantages, one of the main obstacles is the duration of the printed objects.
Within 2015, the Carbon3D printer has been introduced by the CEO of Carbon3D, Joseph DeSimone (DeSimone, 2015). This printer is able to print objects which are not
manufacturable with traditional manufacturing techniques within a short time span. Moreover, this printer overcomes the three main obstacles for using 3D printing for mass production for some companies. Firstly, Carbon3D prints 25-100 times faster, mechanically defects that are established by the layer by layer process are eliminated and the material choices are grown (DeSimone, 2015). On balance, “the printer allows anyone to produce commercial quality
parts at game-changing speed, creating a clear path to 3D manufacturing (DeSimone,
2015).”
Since 2017, Adidas launched a new sneaker with a 3D printed sole, manufactured by the Carbon3D. The companies’ goal is to produce 3D printed sneakers on a mass scale in order to react faster to the changing fashion trends and being able to offer the consumer more
customized products (Thomasson, 2017). This can be linked towards the value delivery component within the business model. Even though Adidas already offered their consumers the opportunity the customize their own pattern and coloured shoes, now they are also able to offer soles designed to fit an individual’s weight and gait.
Not only the products match the preferences of consumers better, the Carbon3D technology also allow Adidas to make small batches of shoes far more quickly without a cost penalty. Therefore, they are able to introduce more types of products with no extra costs involved (Thomasson, 2017). As a result, Adidas is able to broaden their target market as they are planning to offer consumers measurements and testing in stores in order to design the perfectly fitted shoe for an individual’s type of sport, weight and gait. This increases delivering value to consumers.
Not only the target market will become broader, also the cost structure will become more affordable. When taking traditional manufacturing of Adidas into account, it was not
economical beneficial to produce small batches as the metal moulds needed to be used for ten thousand times in order to pay for themselves, having a time span of four to six hours
(Thomasson, 2017). Due to the usage of Carbon3D, Adidas is able to introduce more types of products without a cost penalty. This also leads helps cut the time it takes to get new designs to stores as designers and research developers are able to work more closely within one department. This results in capturing more value for Adidas.
Consumers become part of the production process leading to a positive change in the value networks of the business model. Crowdsourcing10, which can be seen as part of the value networks of a company, is radically changing. Whereby traditional manufacturing restricted crowdsourcing to the design and idea of a product process, additive manufacturing enables consumers to crowdsource within the manufacturing process due to the mass-customization of the Adidas shoes. According Calia, Guerrini and Moura (2007), the increase in value
networks leads towards the necessary resources to changes the business model and increase competitiveness (Calia, Guerrini and Moura, 2007).
However, also downsides occur on the value creation component. As mentioned earlier, core competitors are increasing as more companies are able to enter the market by the usage of 3D printing. When referring to Adidas, rivals like Under Armour, Nike and New Balance are also experimenting with additive manufacturing. On the other hand, they are using the technology for the creation of prototypes used for sponsored athletes at a high-price (Thomasson, 2017). This is due to the fact that traditional 3D printers are slower and more expensive. So even though the rivalry market increases for a fashion company, Adidas is one step ahead.
Furthermore, one of the disadvantages using 3D printing as a direct manufacturing is related to the radical changes in the profit allocation. As Adidas partly shifted towards Carbon3D whereby mass customization is possible, consumers become part in the production process. As consumers are getting an important role within the production process, they might become reluctant to pay as much as before. This lead to completely changing the revenue model of Adidas, which might become a challenge. Even though they are capturing more value by the cost structure, the possibility of finding a good revenue model and radically changes in the profit allocation might lead towards a negative value capturing (Rayna and Striukova, 2016 : 6-7).
10 Crowdsourcing: “The practice of obtaining needed services, ideas or content by soliciting
contribution from a large group of people and especially from the online community rather than from traditional employees or suppliers (Merriam-Webster, 2018).”
4.1.3. Mesh Lingerie
4.1.3.1 Introduction to Mesh
Mesh Lingerie was founded by Dutch fashion design engineer Lidewij van Twillert. During her master at the Delft University of Technology, she wanted to graduate with a project whereby fashion integrated with science in order to create more meaning and depth in the Fashion Industry (Doevendans, 2016). Mesh Lingerie offers women to have their own custom fit bra based on a personal 3D body scan. Those support elements are printed via additive manufacturing. In 2017, Mesh Lingerie has revealed her first products on the market and also created their own Mesh jewellery line, which are based on their lingerie line (Doevendans, 2016).
The selection procedure of Mesh was based on their direct manufacturing of bra’s due to the usage of 3D body scanning. This covers the third technological development stage of additive manufacturing combined with the possibility of printed Lingerie. Thus, a different additive manufacturing stage implemented in a totally different fashion market segment.
4.1.3.2. Case study
Mesh lingerie was inspired to set up a company for perfectly fitted bra’s due to the lack of good bra’s (Alec, 2015). Most women experience that their bra is too small or too big, to lose or to tight and not comfortable. In order to solve those problems, Mesh Lingerie is making use of 3D body scans to perfectly determine the size and fit of the consumer and the support elements are directly printed by making use of additive manufacturing (Mesh Lingerie, 2017). As a result, Mesh Lingerie has developed a method to provide necessary products for a wider audience (Mesh Lingerie, 2017). By making use of the 3D technique, Mesh Lingerie is able to expand their target market as their products offered are mass customized by the preference of each consumer. By doing this, the value delivery has increased. Not only the Value Delivery increases, also the product and service offering has positively grown as consumers are now finally able to purchase a bra that perfectly fits their body.
Moreover, Mesh Lingerie has not only a company mission, they are also focused on a global one. As the bras are custom made, the chance consumers cherish their product and becomes more valuable towards themselves leading to a decreased chance that those bras will be thrown away (Mesh Lingerie, 2017). Therefore, less waste will be generated. This increases their value communication surrounding their company. They are not only focussing on the
individual advantages, but also on the global advantages. As a result, their value communication increased due to their ethos and story.
4.1.4. Continuum Fashion Company
4.1.4.1. Introduction to Continuum Fashion
Since 2010, Continuum Fashion Company was launched by the co-founders Jenna Fizel and Mary Huang (Continuum fashion, 2017) . Continuum Fashion allows consumers to create their own designs using software. Besides the application they have invented, their product can also be purchased via their own website and the online platform service Stratasys. This company is combining direct manufacturing and in-home production by this distribution strategy. Therefore, Continuum Fashion is selected for this case study.
4.1.4.2. Case study
Continuum Fashion offers different product categories, starting with the dresses they created. Firstly, within their line CONSTRVCT, Continuum Fashion offers consumers to create, share and make fashion designs. Hereby, consumers are able to create their own digital design by the software offered and then exporting to pattern files resulting in physical clothing
(Continuum Fashion, 2012). Originally, CONSTRVCT was launched by the concept of made-to-order service but it turned out to be a platform for digital fashion design. Within the
process of creating the perfectly fitted dress, the company first create a 3D model of a garment. Afterwards, the 3D model goes through their body measurement system generating sizes on demand given a set of measurements (Continuum Fashion, 2012). Via the app Continuum Fashion has generated, consumers are able to select their own prints via images and choose their own design of the dress, resulting in a unique piece of clothing solely created by the consumer.
Besides Continuum offer of perfectly fitted and customized dresses, they also offer consumers different kind of shoes. Firstly, the Myth shoes are designed for ready-to-wear whereby the designs manifest directly from digital to physical (Continuum Fashion , 2014). This shoe collection is hundred percent 3D printed and are a virtually zero waste product (Continuum Fashion , 2014) . As no material is waste, this creates a higher ethos and story of Continuum. Consumers find it important that responsibility is taken into consideration when it comes to
producing. Therefore, Continuum is one step ahead by offering Corporate Social Responsible shoes.
The second collection of shoes by Continuum Fashion is the Shoekit. The main goal of this shoe is to provide consumers a library of shoe lasts that anyone can download and 3D print (Continuum Fashion, 2014). By offering lasts11, consumers are able to make their own pair of wearable shoes in a short period of time and not needing professional skills (Continuum Fashion, 2014). Furthermore, Continuum offers the Strvct shoe collection whereby the
consumer can get customized fantasy-inspired designs using innovative materials (Continuum Fashion , 2014).
By offering a large scale of shoe collection, Continuum is able to answer the different taste of consumers. Besides, consumers are able to create their own pair of shoe as well, leading towards the ability of reaching another target market as well.
Moreover, Continuum has developed the possibility of 3D printing a bathing suit which is ready-to-wear and made out of Nylon. This offers consumers a strong bathing suit which is waterproof and comfortable when being wet (Continuum Fashion , 2014).
By the usage of additive manufacturing as a direct manufacturing process, it is favourable for start-ups. Continuum still is a start-up, growing every day. By making use of 3D printing, it creates large opportunities enabling positive cash flows leading to a positive effect of capturing value (Continuum fashion, 2017). Traditional manufacturing creates difficulties infiltrating mass-manufacturing equipment’s due to low volume production. This leads l to not meeting the minimum order requirement or a lack of sufficient funds to get the production going. Using 3D printing for direct manufacturing changes this perception (Rayna and
Striukova, 2016 ).
According to PitchBook Platform, the latest deal amount of Continuum is $1 mln funded by Seed Round (PitchBook, 2017). As the company does not have to pay upfront for the
11 Lasts are wooden or plastic base blocks for a given style and size (Continuum Fashion, 2014).
production, storage of a product, transportation and the manufacturing is on demand, Continuum receives the money for the ordered product upfront and then pays for the manufacturing costs (Continuum fashion, 2017). This combined with the funds received, Continuum has a bigger chance to grow.
By creating an online platform for digital fashion design, delivering value increases as new distribution channels can be used besides their existing ones (Rayna and Striukova, 2016 ). By making use of the Continuum application, anyone in the world can create their own design and share this across the web resulting in the fact that the design can be downloaded and made at any point of the globe due to the usage of other 3D printing services (Continuum Fashion, 2012).
As Continuum is operating with 3D technology concerning direct manufacturing, the value creation of the company is affected as additive manufacturing enables to manufacture with any 3D printer whereas with traditional manufacturing a company is tied to a particular factory (Rayna and Striukova, 2016 ). This increases the complementary assets of Continuum as manufacturing requirements of the product, regardless of the location, can be produced when the 3D printer fits the requirements (Continuum fashion, 2017). Not only the value creation increases, also the value network will become positively influenced. As consumers have the ability to adopt and design their own kind of garment, they are participating in the crowdsourcing process of Continuum.
Even though Continuum Fashion experience several advantages, also negative sides occur. As Continuum does not use 3D printing as a substitute for traditional manufacturing, the main issue is concerning profit allocation (Continuum fashion, 2017). As Continuum offers consumers an online software platform where any consumer over the world can print on a global scale, intermediaries are involved. They are partnered up with Shapeways, an online platform offering 3D printing services and 3D printers (Shapeways , 2018 ). As Continuum is a start-up, owning printers can be challenging due to the expenses. Therefore, outsourcing the production towards online 3D printing services is a logical step. However, those platforms want a share of the value created resulting in deriving commission on the revenue of Continuum. As a result, Continuum should with draw part of their profits which can negatively influence their profit allocation resulting in a negative twist of their value capturing (Rayna and Striukova, 2016 : 6).
