Business Model Canvas: Free People

In my Web-Based Retail class, we created a Business Model Canvas. We chose a company to analyze for the Business Model and identified key aspects.

Key Partners

Free Peoples key partners are Urban Outfitters, Free People Movement and Anthropologie. URBN is the manufacturer for Free People. Their suppliers are domestic and foreign. They also have private label brands within each separate company. The brands are connected by designing merchandise for different age groups. Urban is geared towards juniors, Free People is designed for Generation Z and Anthropologie connects with Millennial's. This allows the corporation to target a wide variety of consumers.​

Key Activities

Free People altered their target audience for women in their 20 to 30s. Their Production activity is to draw, design, sew and buy for her. They want to reach a young, free, confident woman. Free People designs for her. From the research found, the company problem solves by noting that their accessories department was sparse in which the design team added a greater variety. To maintain customers, Free People has launched websites in the U.K. and China while still providing a vibrant experience online.​

Value Proposition

Free People Movement is satisfying the need for people to move their bodies in breathable fitness apparel. This apparel allows consumers to perform in any fitness class which is backed up by the classes they offer. Free People is trying to solve the consumers problem of having reliable work out gear that is affordable compared to other brands. They provide a range of merchandise for day-to-day activities, comfort and breathability. Free People is offering reliable apparel to bring fitness, wellness and happiness to their target consumers. They add value through their customer relationships by member awards, unique hand-picked merchandise in each store branch and creating an inviting store environment.​

Customer Relationships

Free People Movement has connected with their fitness enthusiasts by creating classes countrywide. Classes are held in big cities around the U.S. that connects their brand with their consumers. The classes range from hikes, meditation, yoga, etc. A single class costs 25$ but is effective to connect fitness apparel with fitness classes by bringing their consumers together.​

Channels

Free People connects with their consumers through member rewards. They provide exclusive benefits which promotes their brand loyalty. They use owned and partner channels but rely on owned channels to be more successful.

Customer Segments​

Free People Movement is creating value for consumers who are looking to dive deeper into fitness, wellness and happiness. Free Peoples most important customers are people who need different workout attire for varying workout styles. Free People targets a niche market to focus on a specific group, fitness lovers, to provide needs that will be more geared to them.

Revenue Stream ​

Free People segments their operations into three: wholesale, retail and subscription. They allow consumers to rent merchandise monthly with the option of purchasing the product using Nuuly. The subscription fee is $88 but only accounted for 1% of net sales for the 2021 fiscal year. Wholesale accounted for 5.7% of the 2021 fiscal year. Free People selects price points that are consistent with the spending patterns of their target consumers.​

Cost Structure

Free People spends most of their revenue in marketing because it is the best way for them to bring product awareness to new and existing consumers. During the fiscal year of 2021, Free People paid a majority of expenses to store construction. Free People strives to create a unique and vibrant experience with their locations which is important to their brand. Free People also recorded a large expense to goodwill impairment during the 2021 fiscal year.