I was discussing about Threadless with a friend and he mentioned that one of his class mates from college has started an Indian version - http://www.inkfruit.com
I just had a fleeting look at the website - a very similar concept but seems like they have just started - only give you points to shop on their website for selected designs or submitting photos (instead of cash award), doesnt seem to have the referral policy and the blog doesnt seem to be as comprehensive.
Yet, a proof of low barriers to entry but it would be interesting to see what they do differently to adapt to Indian context as well as things different from Threadless - so far they just seem to copy them!
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This brings up a good point: in class we focused only on the US market for the products in our discussion of whether there were high barriers to entry. It's pretty clear that the network effect does create a barrier and it's reinforced by Threadless' authenticity. However, the chink in the armor is that Threadless has to ship all of its products, and international shipping is much more expensive. Local production in the case of the Indian market is much more feasible. SO I'd like to qualify my statements made in class by saying that although there are high barriers to entry domestically, Threadless is not erecting a credible barrier abroad.
ReplyDeleteFirstly, I take it back that they dont give any cash for the selected designs. The current cash reward is $50 (much less than what Threadless gives).
ReplyDeleteSecondly, doing a little more research, there are actually a couple of other Indian companies on the same concept:
1. http://www.myntra.com
2. http://www.pringoo.com/
Another example of low barriers to entry with the Threadless model is Design By Humans, headquartered in Irvine: http://www.designbyhumans.com/
ReplyDeleteDesign By Humans is missing some of the artsy charm that Threadless has, but it's made a decent splash in the past two years. They've taken the Threadless model and attempted to steal some market share with only one major modification - graduated prizes and special contests. They offer cash awards based on sales over time and award on a daily, weekly and monthly basis. They also sponsor "special contests" to promote those relationships with celebrities, bands, or organizations that need a forum to host a shirt design contest.
It goes to show once again that Threadless could really beef up some of their features (be it cash prizes, elite networks, or an international scope) to stay at the top of their game.
Wow, I guess there are copycats all over the place. A classmate just mentioned to me that she is thinking of starting her own "Threadless company" in China. Though, I don't know if it will actually work. I really believe that the authentic, organically-grown community is what makes that business so successful.
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