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Renoon: Reinventing Shopping for Sustainable Fashion

Secured Content for Teachers
Renoon is a tech startup focused on improving transparency in sustainability claims within the fashion industry. Initially, it operated as a B2B2C platform, helping consumers navigate fragmented and hard-to-verify sustainability information. Users could personalize their sustainability preferences, and Renoon would recommend products accordingly, earning a 15% commission on sales. Despite creating consumer value, Renoon struggled to generate sufficient revenue to sustain profitability. The commission-based model was unreliable due to delayed, variable, and partial payments from sellers, while operational costs continued to rise with the app's growth and international expansion plans.
 

With this teaching case, students are invited to explore alternative business models to enhance commercial viability. Two primary options are considered: transforming Renoon into a media company providing high-quality content on sustainability and fashion or becoming a reseller directly selling clothes on its platform to earn margins from sales. Students are also encouraged to propose other innovative solutions, detailing their ideas using the Business Model Canvas framework. The teaching note will reveal the business direction that was eventually chosen by Renoon.

This case is based on field research. It is written to provide material for class discussion rather than to illustrate either effective or ineffective handling of a management situation. A separate teaching note has been developed to aid instructors in using the case. Copyright © 2024 RSM Case Development Centre, Erasmus University. No part of this publication may be copied, stored, transmitted, reproduced or distributed in any form or medium whatsoever without the permission of the copyright owner. Please address all correspondence to cdc@rsm.nl

Executive Summary

Learning Objectives Target Audience Keywords How to use this case Authors Secured Content
Learning Objectives

The case illustrates a common challenge for marketing strategists and entrepreneurs focused on sustainability: while ideas or innovations may create tangible value for consumers (or others), there is no guarantee that a business can extract enough value to remain profitable over time while staying true to its original mission.

After engaging with this case to explore alternative business models and think creatively about possibilities, students should be able to:

1. Understand the impact of a firm's orientation toward customers versus other businesses on profitability;

2. Explore how platforms can be monetized, particularly the challenges of growing a platform by focusing on users versus technology;

3. Explain how consumers perceive sustainability and how companies can leverage consumer psychology to create value; and

4. Appreciate and be better prepared to handle the challenges of building and scaling a tech business with a sustainability focus.

Target Audience

This case can be used in MBA, EMBA, and other Master or executive-level courses in business management. It is particularly suited for teaching sustainability-focused classes that illustrate the strategic marketing challenges faced by multisided platform businesses.

Additionally, it is suitable for digital marketing or digital transformation classes that explore platform dynamics and monetization strategies. Given its focus on a startup operating in the sustainability space, the case is also ideal for courses in entrepreneurship, business ethics, or business society management.

Keywords

B2B; B2C; fashion; greenwashing; innovation; monetization; multisided platform; MSP; profitability; reseller; startup; sustainability; technology; trust

How to use this case

This multi-source case includes the following materials:

  • Introduction and Summary (available on this webpage, click here to download the PDF version)
  • Teaching Case (restricted access)
  • Teaching Note (restricted access)
  • PowerPoint Presentation for Teachers (restricted access)
  • Teaching Video – Example Class (restricted access)
  • Teaching Video – Company Solution (restricted access)
  • Pre-Class Survey (restricted access)

To access the secured content, please download the teaching note from The Case Centre, which provides the necessary access information. Erasmus University Rotterdam staff can download it for free, while external users will need to purchase it. Detailed instructions for both are available here. 

 

Authors

Prof. dr. Steven Sweldens (Chaired Professor of Consumer Behavior and Marketing, Rotterdam School of Management, Erasmus University)

Tao Yue (Managing Editor, Case Development Centre, Rotterdam School of Management, Erasmus University)

Dr. Johannes Boegershausen (Assistant Professor of Marketing, Rotterdam School of Management, Erasmus University)

Arnaud Monnier (Assistant Professor of Marketing, Nova School of Business and Economics, Universidade Nova de Lisboa)

Filippa Laurelii (Case Writer, Case Development Centre, Rotterdam School of Management, Erasmus University)

The authors would like to express their gratitude to Iris Skrami (CEO and co-founder) and Piero Puttini (co-founder) at Renoon, as well as Adrienn Toth at the RSM Case Development Centre, for their valuable contributions to the development of the case.

Secured Content

To access the secured content, please download the teaching note from The Case Centre, which provides the necessary access information. Erasmus University Rotterdam staff can download it for free, while external users will need to purchase it. Detailed instructions for both are available here.

Access Secured Content