This report explores the Charles Tyrwhitt business model using the nine component Business Model Canvas approach to identify the features that had such an immediate impact on Australian fashion retailing. The analysis relies on publically available information.
Charles Tyrwhitt’s online model draws on core elements of a direct mail order business relying heavily on renting mailing lists of potential customers with the propensity to buy using the internet capture orders.
Growth in inventory holdings and a slowing of the inventory cycle have been compounded byopening new stores in low growth markets and largescale owner capital drawings.
Charles Tyrwhitt can reshape its business model and avoid being disrupted by potential new entrants. The following are recommended to achieve future growth:
- Move from a propensity driven to a job to be done customer segmentation model
- Better understand whether the disruptive innovation concept of zero consumption competition applies to CT
- Halt UK store growth and focus on applying the lessons learned in Germany and Australia to Scandinavia and other English speaking markets respectively.
