Technology, fashion and ecommerce are exploding. In 2016, retail ecommerce revenues totaled $72 billion, and they are projected to increase to $116 billion by 2021. Legacy and startup fashion brands have tried multiple ways to capture today’s digital-savvy consumers, from adopting advanced CRM technology to learning to market via social media. One model that has been widely tried is membership programs, which have met with varying degrees of success. There is one company, a pioneer of subscription programs, that has been stunningly successful, and it has emerged as a juggernaut in online retail sales. Yet few people have heard about it, and almost no one is aware of its role as a marketing and technology trailblazer. The company is TechStyle Fashion Group, led by co-CEOs Adam Goldenberg and Don Ressler.
From Starting a Trend to Bucking the System
In 2010, JustFab launched the retail industry’s first fashion membership program for footwear. Subscribers to its VIP monthly subscription received more than 30 percent off retail pricing, along with exclusive access to promotions and special products, loyalty rewards points and free shipping. The model worked: In just two years, the site attracted six million members. In the first quarter of 2012, JustFab sold more than 2.5 million pairs of shoes.