Imagine going to an apparel shop that allows you to try out shirts, but not to collect the delivery (even after the payment!).
ZeroStock is an interesting retail startup that is attempting a breakthrough in supply chain.
Their stores do not have any readymade apparel available, i.e. zero inventory model.
All a customer has to do is walk into any of the stores, figure out the size which will fit them with the trial shirts on display and then select the design and the material of the shirt. Once the transaction is done, the shirt will be dispatched to the customer within a matter of 24 hours to 48 hours from their centralized inventory at no additional cost. [source]
Started by Wharton grads, ZeroStock plans to have 300 shops (brand name: Cornerstone) across major cities and towns by the year end.
In essence, zerostock is trying to improve the supply chain inefficiency and their major USP is
the money saved by not maintaining any inventory (and the associated jazz). They have central inventories and source the products on-demand – essentially a postponement strategy, which will keep the cost low (hope they transfer the saving to the user as well)
One of the other USP of ZeroStock is that have sizes right from 29 to 46 (i.e. sequential, one can buy 33/35 size as well).
The team has raised $4 million from angel investors (I heard about them last October) and are planning to raising Rs 50 crores to support growth plans.
Their online version will be available soon.
What’s your take on this model? Are you willing to wait for a day or two to collect the shirt you saw a few days back?
Shopping is quite an impulsive decision and unless they provide major discounts, the selection-to-delivery delay will be a hindrance in mass adoption.