The MVP Myth: What A Minimum Viable Product Really Means

Rene Pupala | Consultant | Retail Reply, London, UK
Version 1.1 | April 2025

Introduction

Minimum Viable Product - The term MVP gets thrown around alot in product development. Start-up's pitch them to investors, founders obsess over them, and even established retailers rush to implement them - hoping to future-proof their business in an increasingly digital world. But despite its immense popularity, MVP is one of the most misunderstood concepts in tech.

For some, an MVP is just a half-baked product; one that is rushed to market with the hope that users will tolerate its countless flaws. Others look at it as a prototype that is meant to impress stakeholders but is never actually tested with real customers.

But what is the problem? 
Well, misunderstanding an MVP will inevitably lead to wasted time and resources all underpinned with a massive risk of launching something nobody actually wants.

Let us set the record straight once and for all. In this article we will:

• Break down the real meaning of MVP.
• Bust common misconceptions that derail teams.
• Highlight successful MVPs (including one from Reply).
• Show you how to get MVP right.

By the end, you will have a clearer understanding of what an MVP is – and more importantly, what it isn’t.

The Origin of MVP's

To truly understand what an MVP should be I'm going to take it back to where it all started: The Lean Startup by Eric Ries.

In other words, an MVP is not about launching fast or cutting corners – it’s about learning fast. The goal is to validate or equally invalidate assumptions before you heavily invest in development.

Key MVP Principles

1. It must solve a real problem. 
2. It must be usable.
3. It must allow for maximal learning.

Too many teams misinterpret MVP leading to failed launches, wasted effort, and disappointed users. Let’s explore…

What MVP's Are Not

1. Not a Prototype:
   Prototypes are representations of a product – think wireframes, digital or physical mock-up's or basic clickable demos. They are certainly useful for internal validation, but MVP aims to gather external validation and feedback from real users in real-world scenarios.  MVPs must be functional.
    
2. Not a Half-Baked Product:
   The M of MVP – “minimum” does not mean low-quality. It means focusing on the essential functionality that delivers value, thus providing useful learning opportunities. A minimum viable product. Would you trust a self-checkout system if half the transactions failed? Would you continue using a store’s mobile app if barcode scanning barely worked? – I wouldn’t! An MVP should still be usable and reliable, even if its bare bones functionality wise.
    
3. Not a One-Time Thing:
   Many think that once their MVP is built, they’re done. But an MVP is absolutely not a single event – especially in retail, where customer expectations and market conditions evolve rapidly. A store’s first mobile app might just offer loyalty points tracking, but future iterations could include personalised offers, mobile payments, and AI-powered shopping assistants.
   Test – Learn – Iterate – Repeat.
    

Successful MVP Stories

• Airbnb – Testing Demand Before Building a Platform

A classic example of an extremely successful MVP. (Airbnb’s Story)
In 2007, Airbnb’s founders, Brian Chesky and Joe Gebbia, were struggling to pay rent in San Francisco. When they saw that an upcoming design conference had left all local hotels fully booked, they spotted an opportunity. 
Instead of building a complex booking platform, they launched a simple MVP—a basic website where attendees could book air mattresses in their apartment. It wasn’t scalable, but it validated a crucial assumption: People were willing to pay for short-term stays in strangers’ homes.
They gained real users and feedback without major tech investment. this proof of demand led to further iterations, eventually scaling Airbnb into a $100B+ business.

Key Takeaway? – You don’t need fully featured apps to test demand. Start small, validate early.

• Retail REPLY x City Plumbing – Using an MVP to Streamline New Builds

When City Plumbing aimed to improve its operations with housing developers, it faced significant challenges: managing complex Bills of Materials (BoMs), tracking changing build schedules, and improving forecasting accuracy—all while controlling costs.
Rather than committing to a full-scale, bloated system overhaul, City Plumbing partnered with Retail Reply to develop an MVP— New Build Supply Chain —to test a new operating model before expanding.
Mapped and managed reusable BoMs to reflect different house types and variations. Created a system for tracking evolving build schedules, including order changes and substitutions. Improved forecasting accuracy to enhance replenishment and fulfilment decisions. Built the MVP on open, portable technology to ensure future flexibility.
The Results?

• Increased visibility of required products, improving stock management both centrally and in branches.
• Streamlined the ordering process for developers, enhancing City Plumbing’s appeal in the market.
• Established a foundation for new IT delivery models, strengthening City Plumbing’s internal engineering function.

Key Takeaway? Enterprise MVPs validate more than just software—they redefine operational models. By piloting a lean ordering model with New Build Supply Chain, City Plumbing minimized risk, optimized costs, and set the stage for scalable, long-term efficiency.

• Amazon Web Services – Internal Tool Turned Billion $ Business

In the early 2000’s, Amazon was struggling with the scalability of its e-commerce infrastructure. Rather than jumping into a full-fledged cloud computing business, they first built an internal MVP – a set of modular cloud services for their own teams. Tested within Amazon first before offering it externally, iterated based on internal feedback, refining the service model and launched as AWS in 2006, now a $90B+ business.

Key Takeaway? – Amazon validated its cloud model internally before investing in a massive external rollout which reduced risk, allowed for quicker feedback loops and saved unnecessary costs.
 

How To Get MVP Right (Retail Edition)

1. Know Your Customer First 
   MVP's fail when they don’t solve a real pain point for the right people. Start by understanding:
   - Who’s the end user?
   - What’s their biggest friction?
   - How do they solve it currently?
   
   Example: Before launching AI demand forecasting, test if you even struggle with stockouts – or if the real issue is supplier delays.
    
2. Validate Before You Build 
   Retail tech requires heavy investment due to the complexity of businesses (integrations, logistics, training etc). Validate demand before coding. Quick MVP Validation Methods:
   - Landing page test – Getting signups before development.
   - Manual version – Schedule complex order dates manually before automating.
   - Limited pilot – Test a loyalty app in one branch before full roll-out.
   
   Example: Walmart manually fulfilled two-hour deliveries using store staff and third-party couriers before automating the process. Strong adoption proved demand, leading to a full-scale rollout.
    
3. Build the Smallest Functional Version
   An MVP should be minimal, but useful.  Keep it simple:
   - Don’t: Build an AI-powered POS with full CRM and supplier integration.
   - Do: Launch a basic digital receipt system in 5 stores first.
   
   Example: Retail Reply helped a client rollout electronic shelf edge labels by testing the solution in the Lab before extending the technology to over 80% of the products in the store. 
    
4. Measure, Learn, Iterate
   Don’t assume success – track real usage and pivot as needed. Key Metrics to Track:
   - Customer adoption – are shoppers using it?
   - Operational impact – is it saving the store teams time?
   - Revenue effect – is it increasing basket size?
   
   Example: A cashier less checkout MVP tested in one pilot store found that congestion shifted to bagging areas—leading to design tweaks before scaling.
    
5. Scale Only When the Data Says So
   MVPs involve physical scaling – store rollouts, POS integrations, supplier coordination. Expand only when:
   - Customers actively engage.
   - Operational kinks are ironed out.
   - Revenue impact is clear.
   
   Example: A major retailer tested AI-powered self-checkouts in 5 stores before scaling. Early feedback showed that customers struggled with bagging errors, so they tweaked the system before a wider rollout, reducing friction and increasing adoption.
    

Final Thoughts: The MVP Mindset In Retail

If there’s one thing to remember, it’s this:
The goal of an MVP isn’t to launch—it’s to learn.

Many organisations fail because they build too much, too soon. Others fail because they launch too fast, without testing assumptions. The best products strike a balance: they start simple, validate early, and iterate based on real data. And in retail, this balance is even more critical. MVPs in retail aren’t just about software—they involve real-world logistics, store operations, and customer experiences. A failed MVP in this space doesn’t just mean wasted code; it could mean supply chain inefficiencies, lost revenue, or a broken customer journey.

The best retail MVPs:

• Start with deep customer understanding.
• Test demand before investing heavily.
• Focus on one core feature before scaling.
• Collect data from all stakeholders (store managers, suppliers, customers).
• Iterate before rolling out chain-wide.

Retail tech is complex—but with the right MVP approach, you can avoid costly mistakes and build products that truly resonate.  
At Retail Reply, our Product Consultants specialise in planning, running, and learning from MVPs. We have seen first-hand how poorly planned MVPs can become wasted investments – but we have also seen how the right MVP approach can be a critical learning stage in the product lifecycle, helping retailers de-risk innovation and set new standards for future product development.

If you are looking to launch an MVP that delivers real value, not just a quick release, let us talk.