Skip to main content

Discussion on the Lean Canvas for 'Fashnear' and problem-solution-fit.

In this section, we review hypothetical Lean Canvases for Fashnear and assesses whether the venture has achieved problem-solution fit based on the case's initial details.

Discussion on Lean Canvas for Fashnear

The module reviews a Lean Canvas filled out by a student (Aashna) for the Fashnear case, offering general feedback applicable to other Lean Canvases.

Key Feedback Points:

  • Customer Segments & Problems:

    • Fashnear identified two distinct customer segments: local unbranded apparel store owners and online shoppers (end consumers).
    • Best Practice: For two-sided platforms, it's advisable to either:
      1. Create separate Lean Canvases for each distinct customer segment.
      2. If using one canvas, color-code problems and solutions to clearly link them to their respective customer segments.
    • Problem Specificity: Ensure problems listed clearly articulate the pain points for the customer, not just observations about market gaps.

  • Solutions:

    • The solutions listed (browse collections, home trials) primarily addressed the online shoppers.
    • Improvement: The canvas should also explicitly state the solution offered to the retailers (e.g., providing an online presence and wider audience connection). This again highlights the benefit of separating or color-coding segments.

  • Unique Value Proposition (UVP):

    • Aashna's UVP ("Fashnear delivers unbranded fashion from local retailers with the ease of online shopping") was deemed accurate in capturing the business.
    • Improvement: A UVP should be a compelling statement directed at the customer, explaining why they should care. It needs to be very targeted. For online shoppers, the UVP is about bringing unbranded clothing to their fingertips. For retailers, it's about providing online presence and broader audience connection. These should ideally be distinct and impactful.

  • Unfair Advantage:

    • Aashna listed "leveraging local networks" and "innovative mall experience at home."
    • Feedback: These might be easily replicable by competitors. It's perfectly acceptable to leave the "Unfair Advantage" box empty initially, especially if there's no proprietary intellectual property (like a patent). Don't force a weak competitive advantage.

  • Channels:

    • Mobile application is the channel for shoppers (via app stores).
    • On-ground salesforce would be the channel for acquiring retailers (physically visiting shops to onboard them).
    • Key Insight: Channels, like other elements, are driven by the specific customer segment. Sharply defining the customer segment helps in targeting marketing efforts efficiently.

  • Key Metrics:

    • Aashna listed metrics like customer acquisition cost, retention rate, active users.
    • Feedback: The Lean Canvas is a snapshot in time. Metrics should reflect the current stage of the business and immediate goals. Early-stage metrics might include "number of retailers onboarded" or "number of app downloads," rather than long-term metrics like profitability or margins.

  • Revenue Streams & Cost Structure:

    • Aashna identified potential revenues from commissions, advertisements, and subscriptions, and costs for R&D, manufacturing, marketing, app development, and customer support.
    • Feedback: These are reasonable high-level estimates for the initial stage and will evolve. At this early point, perfect accuracy isn't expected.

Wrapping Up Part A: Problem-Solution Fit for Fashnear

The discussion then moves to a critical assessment: Does Fashnear have problem-solution fit?

  • Student Assessment: Both students suggest a "partial fit," noting initial demand (especially with discounts) but questioning the depth and consistency of the problem, and whether the solution appeals to a wide enough audience for scalability. They hint that the demand might have been driven by incentives rather than a deep-seated need.
  • Clarifying Problem-Solution Fit: The instructor emphasizes that true problem-solution fit means:
    • It's a real problem.
    • There are enough people (a critical mass) who acknowledge this problem.
    • The solution effectively caters to this problem.
    • Solving a problem for just a handful of people is not sufficient for problem-solution fit.
  • Conclusion for Fashnear (Part A): Based on the case, Fashnear does not seem to have achieved true problem-solution fit. The initial surge in orders, which then dropped significantly after discounts were removed, suggests that the "problem" of inconvenience in traditional shopping wasn't acute enough to sustain demand without price incentives, and there wasn't a critical mass of customers willing to pay for the solution at its actual value.
  • What Fashnear Did Well:
    • Innovative home trial concept.
    • Attempted to implement a hyperlocal model in fashion retail.
    • Recognized the demand for unbranded products and gathered retailers.
  • What Fashnear Could Have Done Differently (Areas for Improvement):
    • MVP Complexity: The initial MVP (the app with logistical home trials) was too complex and potentially expensive (high logistical costs for individual store trips). A simpler, less resource-intensive MVP should have been explored first.
    • Insufficient Customer Interviews (End Consumers): The founders seemed to have projected their own problems onto a broader audience without sufficiently validating the problem's depth and consistency with a critical mass of end consumers. More interviews with end consumers were needed to truly understand their needs and willingness to use the service without deep discounts. They focused well on retailers but less on the end users' genuine pain points beyond the founders' own.
Back to top