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Business Model Development for online kidswear stores: Explained by Retail Consultants YRC

Business Model Development for online kidswear stores: Explained by Retail Consultants YRC

YRC is a retail and eCommerce consulting enterprise with ten years of experience in providing superlative business solutions and services.

YRC is a Management Consulting Company, especially for the B-C Sector. Empowering Retail & E-commerce businesses.”

— Nikhil Agarwal

DUBAI, September 24, 2022 / — The omnichannel consulting brand continues to scale at the global level. In this communiqué, YRC explains the fundamentals of business model development for starting an online kidswear store.

Value Proposition

In the value proposition, businesses seek to establish what solution or need their offerings intend to resolve or fulfil. It is simultaneously pursued with whom the offerings are intended. In the kidswear segment, a crucial element for a strong value proposition is the safety and quality of the products. Businesses also need to realise that the end users are not the customers but it is the parents or guardians. So, in identifying a value position businesses need to take into account the priorities and preferences of both the users and parents/guardians. It is a good idea to not completely rely on any one single value proposition. Apart from product safety and quality, other value considerations could be an association with big brands as franchisees, free delivery, lifetime membership, certified educational content on parenting via app or web, etc.

Value Chain

The value chain is the mapping of the process of creating and delivering the value identified in the value proposition. A value chain in business model development is not detailing operations but identifying the key strategies leading to the creation and delivery of the intended value to the target segment. Considering a full-scale manufacturing business idea, important aspects addressed here are:

· QA and QC standards

· Sources of raw materials/inventory

· Production and industrial solutions

· Target market locations

· Warehousing and Fulfilment Centres

· Distribution and delivery solutions

· Packaging

· Payment methods

· Product returns, etc.

The constituents of the value chain are largely determined by the value proposition in question.

Internal Capabilities

Once the value proposition and value chain are known, it is easier to ascertain the resources and capabilities required to pull off the business idea. The internal capabilities could be both subjective and physical encompassing:

· Top-level management with domain specialisation

· Employees with relevant competencies

· HR department and HRM

· Technology, automation, industrial, and logistics solutions

· Funding and financial management

· Administrative systems

· Operations management, SOPs for eCommerce

· Audit and control, etc.

External Capabilities

A business idea is rarely pulled off without using the services, assets, or specialisation of external entities. These external entities make valuable contributions to the value chain. They could be suppliers, vendors, consultants, chartered accountants, banks and financial institutions, businesses dealing in the sale and maintenance of industrial machinery, IT service providers, delivery partners, etc. The resources and services of these external entities are vital to the establishment and sustenance of the value chain.


Technology is a vital element in contemporary business models. This importance is heightened for eCommerce. Many online business consulting experts nod to it. Common technology-related decision-making involved in eCommerce is in the areas of website development, hosting, web tools, HTTP and SSL certification, networking, database systems, ERP for business processes, chatbots, data analytics, Payment Service Provider (PSP), Internet Merchant Account (IMA), etc.

Customer Relationship

Building and maintaining customer relationships is important for all businesses. Talking particularly about eCommerce businesses that deal with kidswear merchandise, ‘follow up’ constitutes a vital consideration. Businesses simply cannot sell and forget or ignore feedback received from customers. The CRM and CX efforts of a brand must echo the care and concern parents/guardians carry for their children.

Revenue Streams

Revenue streams are the reasons why customers would or are willing to pay for the value offered. Exploring the dimensions of this value could reveal hidden and underestimated potentials of the value propositions. Various revenue streams for an online kidswear store may include revenues from product sales, delivery charges, charges for premium services, membership fees, etc.


At the end of the day, the revenue needs to stand over the cost. A business model is not a place to make projected financial statements. Here, the purpose is to identify the major cost heads and get a rough idea of how much it is going to cost to perpetually execute the value chain.

For more insights into how to start an online kidswear store and YRC’s retail consulting services, please visit

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Rupal Shah Agarwal
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