“It’s not always about selling the product. Sometimes, the smartest model is selling everything around it — logistics, IP, even the supply chain.”
In a high-energy, insight-packed keynote at the Digital Leadership Webinar Summit 2025, Ken Leong, Managing Director of 361 Degree Consultancy, delivered a bold reminder that next-generation business models are less about breakthrough technologies — and more about strategic reinvention.
Ken, a CPA and seasoned advisor to over 4,500 Southeast Asian SMEs, broke down three transformative models that will dominate the digital economy: Everything-as-a-Service (XaaS), crowdsourcing and co-creation, and platform-based ecosystems.
But what stood out most wasn’t just the models themselves — it was the way they’re being reimagined by companies who see community, flexibility, and data-driven iteration as their competitive edge.
Highlights
From Ownership to Access: XaaS is Eating the World
Ken began by highlighting a major mindset shift: consumers no longer want to own — they want to subscribe. The subscription economy has moved far beyond software. Today, everything from fashion and furniture to meals and even baked goods is being delivered as a service.
“People don’t want to commit to the same couch or closet for 10 years,” he said. “They want variety without the baggage of ownership.”
Ken showcased examples like:
- Rent the Runway, which democratizes high fashion through clothing rental subscriptions
- HelloFresh, which delivers pre-portioned ingredients for convenient home cooking
- Fernish, offering subscription-based furniture so users can furnish — and refresh — their spaces without long-term commitment
At its core, the model thrives on three things: convenience, flexibility, and continuous value delivery. Businesses that master these pillars will earn not just revenue, but recurring relationships.
Crowdsourcing + Community = Resilient Innovation
The second model Ken explored is crowdsourcing and co-creation — a strategy that not only reduces R&D risk, but builds fierce loyalty and brand resilience.
The standout case study? Threadless — a design-centric e-commerce platform for artists. Rather than invest in in-house design teams, Threadless crowdsources artwork through community contests. Customers vote on their favorite submissions, and only the top designs go into production.
“This does two powerful things,” Ken noted. “It guarantees demand before production, and it turns customers into contributors.”
Threadless’ model rests on three C’s:
- Community — loyal, engaged, and emotionally invested
- Crowdfunding — pre-orders reduce financial risk
- Co-creation — a shared sense of ownership
It’s a model with global potential, especially when combined with AI tools that can accelerate design iteration or automate customer engagement at scale.
Mixue: The World’s Largest F&B Chain You’ve Never Heard Of
One of the most eye-opening case studies Ken shared was Mixue, a Chinese F&B chain that has quietly overtaken Starbucks and McDonald’s by store count, with over 45,000 locations globally.
How did it scale so fast? The secret: it doesn’t just sell bubble tea — it sells the supply chain.
Mixue’s primary revenue isn’t from selling drinks. Instead, it sells ingredients, equipment, and raw materials to its franchisees — everything from straws to fruit syrups. In 2021 alone, Mixue sold $43 million USD worth of straws.
Key to its success is vertical integration:
- Ownership of orchards, R&D labs, and production centers
- A vast logistics network with 26 warehouses covering over 300,000 sqm
- Nationwide free delivery for franchisees
This control gives Mixue unparalleled cost efficiency and product consistency, allowing it to dominate the low-price segment while still remaining profitable.
Frozen Bread, Delivered Monthly: The Pan For You Story
Ken closed his session with an unlikely but compelling business model: frozen bread.
Pan For You, a Japanese bakery, created Pansuku, a subscription service that delivers freshly frozen bread from bakeries across Japan to subscribers, including now in Singapore.
Key features:
- Frozen delivery keeps bread fresh while extending shelf life
- Customization — subscribers choose delivery frequency
- Surprise element — recipients don’t know which bakery or flavor they’ll get each cycle
The surprise factor keeps subscribers engaged. Meanwhile, bakeries reduce waste and reach wider markets without needing storefronts.
“You no longer need to be in Tokyo to get Tokyo’s best sourdough. That’s the power of digital + logistics.”
Platform Thinking: Build Ecosystems, Not Just Products
Ken’s core message wasn’t just about smart case studies — it was about platform thinking. The most successful next-gen businesses aren’t just offering services or products. They’re building ecosystems — powered by network effects, data, and a strong sense of user co-ownership.
He also emphasized that these business models aren’t “new” — but they’re being reinvigorated by AI, digital infrastructure, and changing consumer psychology.
“Add AI into a crowdsourcing model, and suddenly you have 24/7 agents engaging your community. The tech isn’t the disruption — it’s how we redesign value around it.”
Whether it’s a bakery in Osaka or a bubble tea chain in Wuhan, the winners of the next digital decade will be those who blend innovation with intentional design — and who put people, not just products, at the center of their strategy.
📌 Editor’s note:
This feature highlights Ken Leong, Managing Director of 361 Degree Consultancy, who delivered the keynote “Next Gen Digital Business Model” at the Digital Leadership Webinar Summit 2025.
Highlights
Read the Chinese article here.
