• LimitStyle: Innovation in Crowdsourcing Design Platform

Abstract

This case describes how the design team of LimitStyle seized opportunities under difficult circumstances and created the LimitStyle crowdsourcing design platform. Many designers have won international awards, but when establishing their own businesses, are unfamiliar with the process and cannot master the time, costs of mass production, or follow-up channel sales. LimitStyle employed a crowdsourcing design platform to connect key activities, thereby substantially increasing their chance of successfully commercializing their award-winning design products. Designers put forward proposals through this platform, and after submission, votes on the proposals are cast and the sales estimated. If the vote is secured, negotiation with factories is conducted regarding production. Professional process plans are provided, and the 12–18-month average duration of process in the global design industry is shortened to approximately 4 months. Product design and manufacturing processes are constantly being modified through crowd wisdom, which suggests that the platform has great market potential. This innovative model contributed to LimitStyle’s rapid growth in operating revenues, from NTD 9 million to NTD 45 million in 2015. As a result, LimitStyle attracted venture capital investment and developed growth strategies after obtaining more resources. At the beginning of 2016, LimitStyle was confronted with a strategic choice between different products and different markets. This case describes the typical challenges faced by startups. It is divided into Part A and Part B. Part A explores the growth choice faced by the case company. After these discussions, Part B provides discussions about growth decisions in real scenarios.

Keywords: Crowdfunding, Crowdsourcing, Startup, E-Commerce