Vanessa Barboni Halik - Another Tomorrow: New Business Models and Scalability

In a nutshell:

In accordance with the 2025 SOF, the key aspect of the success of Another Tomorrow with developing innovative and sustainable business models is delivering value and communicating it effectively. This also means to deeply understand customers and continually explore solutions to their pain points. New business models like resale are profitable for AT because of the emotional connection it fosters with consumers, they happen anyway and so they are not cannibalizing the sales, but the most important thing is that they satisfy the core key KPIs of our business. Vanessa emphasizes the importance of scalable partnerships in the supply chain. She also stresses that sustainability shouldn’t be siloed which requires curiosity from all co-workers, especially designers. Finally, her advice to the youth: "You have power, stay persistent and learn to prioritize»

Vanessa's Background:

Vanessa spent 15 years in investment banking. In 2018, a disconnect between her values and her job prompted her to explore fashion and its challenges. The complexity of the industry and its environmental and social issues led her to create Another Tomorrow.

Key Insights:

Developing New Business Models:

• Business models should focus on how you deliver value. Key steps include:

Know your customers:

• [Example with Another Tomorrow] Younger women (daughters) are more likely to use rental services, while older consumers (mothers) tend to buy them full-price.

• Customers seek high-quality garments and are willing to pay a reasonable price, positioning Another Tomorrow as an entry-level luxury fashion brand.

• This understanding led to the creation of the "Wedding Cake" merchandising plan:

   *   Pure novelty: High-risk items that are experimental, not the most profitable, but crucial for future growth.

   *   Seasonal: New and more unique

   *   Foundational: Timeless, high-margin pieces (e.g. denim, suits).

   *   Essential: Limited custom materials, seasonless and timeless pieces available for resale, reducing consumer pain points by ensuring accessibility.

Pay attention to the Customers Pain Points:

• Vanessa shared a story about a client worried if she would still fit into a garment after the holidays, highlighting body changes as a consumer pain point. This inspired Another Tomorrow to offer size-swapping for core products.

Connect Emotionally with Consumers:

• Success lies in understanding how to add value and communicate it effectively to customers.

Building Scalable Partnerships in the Supply Chain:

• It’s essential to work with partners who can scale with your business.

Main Bottlenecks:

• Simplifying product access is key. Tech solutions like implementing unique product IDs can make transactions smoother and helps provide information to customers who seek it, without overwhelming others.

Main Challenges in the Industry:

• Customer psychology: The desire for "new" items.

• Over-supply: A vicious cycle tied to consumer demand for novelty.

• The promotion cycle in fashion.

• Seasonality (particularly in the U.S.).

• Lack of exchange policies in the U.S. (unlike the EU).

• Political climate in the U.S. — the need for more policies supporting sustainability.

  *(About Resale:)

• Key Message: Clothing is an asset.

  • The main challenge is the supply; not all sizes or styles are available, so resale is more developed for essential items.

  • The second-hand market can cannibalize sales, but it also presents opportunities for brands in terms of:

    • Profit as customer enters the store and connect with you & you earn money for the service you are providing (that is happening anyway – whether you operate it or not.

    • Engagement, with aspirational consumers as a first way to start their customer journey and with convinced consumer that will appreciate such solution for its reduced impact.

  Keep in mind that:  “41% of consumers look to secondhand outlets when seeking apparel deals.

  The resale market in the US grew 15x faster than the broader clothing retail sector in 2023. By 2025, secondhand sales will account for 10 percent of the global apparel market, and the segment is expected to grow at a 12 percent compound annual growth rate to reach $350 billion by 2028.”

  Source: 2025 SOF

  *(About Repair:)

• Another Tomorrow do not offer repair for now, yet here is how Vanessa Barboni Hallik envision it the following way:

  • Mass Market: Outsourcing repairs to a partner and using stores as entry points for services can maintain reasonable prices while enhancing impact.

  • Luxury Market: Repairs involve a direct connection with consumers, much like resale, creating engagement through in-store visits.

*(About engaging with your company:)

• Sustainability should not be siloed. It's essential to work with people who are curious and open to solutions. Curiosity helps overcome the challenges of sustainability and creates opportunities.

• Always offer your customers high-quality products. Consumers have a sharp sense for price and value.

• Sustainability can't be the sole selling point, but sharing accurate information with the right audience is crucial.

• Integrate core sustainability KPIs into your business model to align the company’s journey with its sustainability goals.

• In times of uncertainty, investing in new business models can be rewarding, but they must align with key KPIs.

Looking Ahead:

• Pre-order systems, on-demand production, and increased personalization.

• Another Tomorrow has expanded to Paris, with Charlotte building the team there.

Final Words to the Youth:

• You have power; don’t get discouraged. Prioritize the problems.