Threadless relies on its community to submit and choose (by voting) shirt designs, producing hit after hit.
Description of user contribution system
Traditional clothing companies hire artists to design new garments. Whether chosen by committee or a single creative lead, decisions about what to produce do not draw on the customers who will purchase them.
At Threadless (founded in 2000), designs are all submitted by users, often budding artists trying to make a name for themselves. The community votes on their favorite designs. Threadless makes the most popular shirts, then sells them. All their t-shirts sell out
Benefits for the users
Customers get unique designs that they chose. Artists get money and recognition associated with winning (i.e. having a design chosen for production). Illustrating how active a role customers take, 95% vote before purchasing.
Benefits for the creators of the system
· Threadless enjoys a 30% profit margin
· Every shirt sells out (minimizes price promotions, stale inventory and other margin-eroding costs)
· R&D-lean model: minimal design staff that includes an art-director that helps winning contestants prepare designs for production
History of the idea
Co-founders Jake Nickell and Jacob DeHart started the company with $1,000 in seed money after entering an internet t-shirt design contest (Wikipedia).
Scale
In 2007, revenue of $30M with roughly 30% margins. From 2006-2007, 200% revenue growth.
More resources
See also on this wiki
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