SBC102 case
[ROUND2] ECOSILKY CASE_HOW ECOSILKY ARTICULATE VALUE PROPOSITION
HOW ECOSILKY ARTICULATES THE VALUE PROPOSITION
Tran Thi Thuy Dung, Phan Thanh Dieu Linh
Foreign Trade University, Vietnam
Abstract:
This paper emphasizes the importance of a strong value proposition for social businesses and its transformative potential. It explores the journey of ECOSILKY, a socially conscious enterprise, in articulating its value proposition. Practical insights are provided to foster impactful and sustainable business practices, including understanding the target audience, identifying key benefits, crafting a compelling message, and effectively communicating the value proposition. ECOSILKY’s value proposition focuses on sustainable fabrics and services, offering natural materials, innovative manufacturing processes, customizable designs, and unique experiences. The company addresses the pain point of limited access to sustainable clothing while reducing environmental impact. Partnerships and commitment to promoting Vietnamese textiles from agricultural waste differentiate ECOSILKY in the market. By following these principles, social businesses can develop value propositions that resonate with their audience, drive growth, and make a meaningful impact. The study encourages the use of the Value Proposition Canvas as a tool for creating and refining value propositions that address social and environmental challenges. Ultimately, a well-crafted value proposition enables social businesses to thrive and deliver value to their customers.
Keywords: Value proposition, social businesses, ECOSILKY, sustainable practices, customer segmentation, unique selling proposition, brand messaging.
1. Introduction
In the realm of social businesses, the importance of a strong value proposition cannot be underestimated. A value proposition goes beyond a mere promise of value; it embodies the customer’s belief in how they will derive benefits from a product or service. It serves as the pivotal point where the value offered by a business aligns seamlessly with the needs and desires of its target customers.
The advantages of a robust value proposition for social businesses are numerous. It establishes a competitive edge by differentiating the company from its competitors and capturing the attention of customers. A well-crafted value proposition not only attracts customers but also drives increased sales and revenue, fostering sustainable growth. Moreover, it fosters customer loyalty by forging a deep connection between the business and its clientele. By delivering on the promised value, social businesses can nurture enduring customer relationships and enhance brand loyalty. Additionally, a clear value proposition brings focus and alignment to the entire organization, ensuring all efforts are directed toward meeting customer expectations.
Within the comprehensive framework of the business model canvas (BMC), the value proposition and customer segments emerge as the fundamental pillars. In strategic literature, their interdependent relationship is often referred to as the Product-Market Fit, emphasizing their paramount importance in achieving business success. The value proposition, coupled with a profound understanding of the target market, forms the foundation for developing a thriving business model.
Hence, for social businesses, the Value Proposition Canvas provides an effective tool for creating and communicating a distinct value proposition that addresses both social and environmental challenges. This canvas empowers social businesses to articulate their unique value proposition and refine it in response to the evolving needs of their target audience. ECOSILKY, a prominent example of a socially conscious enterprise, has effectively harnessed the power of the Value Proposition Canvas to its advantage.
At ECOSILKY, we acknowledge the criticality of a well-crafted value proposition. Our unwavering commitment to environmental stewardship and our utilization of agricultural waste in Vietnam exemplifies our dedication to sustainability. By harnessing the potential of materials such as banana, pineapple, and lotus fibers, we have developed natural and sustainable fabrics that are reshaping the textile industry. Our value proposition extends beyond the creation of eco-friendly fabrics; it encompasses our mission to drive positive change, uplift local communities, and foster environmental sustainability.
This paper aims to uncover the profound significance of the value proposition for social businesses and its potential for transformation. By examining ECOSILKY’s journey in crafting its value proposition, we offer practical insights to foster impactful and sustainable business practices.
2. ECOSILKY’s value proposition articulation
2.1. Target Audience Understanding
ECOSILKY has identified its target audience, encompassing individual customers aged 24-40 located in North America, Korea, and Japan, as well as corporations and fashion brands. In-depth market research has revealed their needs and preferences. Individual customers seek sustainable, environmentally friendly, and fashionable products, while corporations and firms are eager to transform their manufacturing processes into sustainable ones.
2.2. Key Benefits Identification
ECOSILKY offers a range of sustainable fabrics, natural materials, and a collection of 10 unique items. The company’s manufacturing process adds value through traditional weaving and knitting techniques, natural printing and dyeing methods, and the integration of advanced technology.
Innovative features like the Metaverse enable customers to experience clothing items virtually, eliminating the need for physical sample deliveries and reducing carbon emissions. By leveraging NFT technology, ECOSILKY provides personalized discounts and design plans, ensuring an enhanced customer experience. Moreover, AI is utilized to streamline inventory management, production processes, marketing strategies, sales, and overall customer satisfaction.
2.3. Unique Selling Proposition (USP) Highlight
ECOSILKY’s USP lies in its diversity and flexibility. The company offers a wide range of sustainable fabrics, personalized design orders, and flexible minimum order quantities. It holds certifications such as the prestigious Global Organic Textile Standard (GOTS) and ecological plant fiber certificates, providing credibility and assurance of quality. Additionally, ECOSILKY embraces advanced technologies, allowing customers to make purchases using USDT, receive AI-powered product introductions, virtually try on garments through the Metaverse, and even engage with NFT assets to promote sustainability and individuality. Collaborative partnerships with industry peers further reinforce ECOSILKY’s position as a leader in a sustainable fashion. Finally, ECOSILKY proudly shares the story of Vietnamese textiles made from agricultural waste, showcasing its commitment to both local and global environmental stewardship.
2.4. Clear and Compelling Message
ECOSILKY’s value proposition is encapsulated in a concise and impactful message: “ECOSILKY – Vietnamese fabrics for a sustainable environment.” This statement conveys the essence of the brand’s mission, its dedication to quality, and its focus on promoting sustainability.
2.5. Differentiators Emphasis
Beyond offering a diverse range of sustainable products, ECOSILKY is a valuable connector. By collaborating with multiple sustainable material suppliers like Ecosoi, and Musa Pacta, the company ensures a streamlined and efficient supply chain, sparing customers the effort of searching for individual sustainable brands. ECOSILKY’s integration of NFT technology further sets it apart, empowering customers with unique experiences and promoting sustainable fashion in the digital realm.
2.6. Emotional Connection Creation
When customers choose ECOSILKY, they become active participants in the mission to combat the negative environmental impact of the fashion industry. By purchasing ECOSILKY’s products, they contribute to a sustainable future and join a community committed to making a positive difference.
2.7. Validation and Test
ECOSILKY highly values customer feedback and appreciates the constructive input it receives. This invaluable feedback fuels continuous improvement and ensures that the company’s products consistently exceed customer expectations.
2.8. Iteration and Refinement
Based on customer feedback and market demands, ECOSILKY consistently refines its products, adapting to changing needs and preferences while staying true to its core values of sustainability and quality.
2.9. Alignment with Brand Messaging
ECOSILKY takes great care to ensure that its value proposition aligns seamlessly with its overall brand messaging and positioning. By maintaining a consistent and cohesive message across all touchpoints, ECOSILKY reinforces its core values and promises to customers: sustainable fabric for a better environment.
2.10. Effective Communication
ECOSILKY employs a multi-channel approach to effectively communicate its value proposition. Through its website, fan page, and various e-commerce platforms such as Etsy, Amazon, and Shopee, ECOSILKY reaches a wide audience, raising awareness about its sustainable offerings and engaging customers in meaningful ways.
Table 01. Summary of how ECOSILKY articulates Value Propositions
Source: The authors
3. Conclusion
In conclusion, ECOSILKY’s value proposition can be summarized as follows: “Our sustainable fabrics and services cater to environmentally conscious individuals and fashion brands seeking to embrace sustainability. We offer natural and eco-friendly materials, innovative manufacturing processes, and a wide range of customizable designs. We aim to address the customer pain point of limited access to reliable sources of sustainable clothing while providing the customer gain of reducing environmental impact without compromising on style or quality. What sets us apart from competitors is our extensive partnerships, integration of advanced technology, and dedication to spreading the story of Vietnamese textiles made from agricultural waste.”
A strong value proposition is not just crucial but imperative for the success of social businesses. ECOSILKY’s journey in articulating its value proposition serves as a testament to the significance of understanding the target audience, identifying key benefits, defining a unique selling proposition, crafting a compelling message, highlighting differentiators, forging emotional connections, validating and refining, aligning with brand messaging, and effectively communicating the value proposition. By embracing these principles, social businesses have the potential to create a lasting impact, foster sustainable practices, and contribute meaningfully to society’s well-being.
4. References
The business model canvas gets even better – value proposition design (2014) The Berkeley Blog. Available at: https://blogs.berkeley.edu/2014/10/24/the-business-model-canvas-gets-even-better-value-proposition-design/ (Accessed: 12 June 2023).
Sarasvathy, S.D. (2006) ‘What makes entrepreneurs entrepreneurial?’, SSRN Electronic Journal [Preprint]. doi:10.2139/ssrn.909038.
Value proposition canvas (2022) Beanmachine. Available at: https://beanmachine.be/tool/value-proposition-canvas/ (Accessed: 12 June 2023).