Today I did some research about the Patagonia worn wear program.
Why does a device security provisioning startup do some research about the apparel company?
UNiD, our device security provisioning platform, can drive our user's transformation of their manufacturing business from selling hardware to service, including the aftermarket. I wanted to learn about the simplest (but relatively new) transformation mechanics through the real-life example and found Patagonia. What Patagonia has done is the skeleton for companies, including hardware brands, that desire to penetrate into the aftermarket. And, the hardware brands can utilize data to enable the penetration.
The aftermarket, simple math
Worn Wear is Patagonia's product life extension program consisting of trade-in, resale, repair, online maintenance tutorials, and showcasing the worn wears at retailers.
As you know, the apparel company sells beautiful wear and gear for outdoor activity fans.
In terms of business, their traditional business model is selling goods either online or retail to consumers. The aftermarket is a common challenge for apparel companies and industrial hardware companies.
Now Patagonia can make extra revenue by having started the business in the aftermarket.
For example, the trade-in value of a piece of fleece is $20. And, the fleece jacket is being sold at the worn wear online store is $60ish. Approximately $40 is the margin. (In real life, logistics, repair & furbishing, and marketing costs should be deducted.)
This is a simple example that tells the profitability of the aftermarket.
Thus, Patagonia successfully penetrated into the aftermarket by setting up the worn wear platform.
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