TechStyle Fashion Group

TechStyle Fashion Group (formerly JustFab Inc.)
Type of site
 Private
Available in English
Founded March 2010
Country of origin United States
Key people Don Ressler and Adam Goldenberg, Founders
Industry E-commerce
Divisions
Website www.Techstyle.com
Registration Required
Current status Active

TechStyle Fashion Group, formerly JustFab Inc., is an online subscription fashion retailer that carries selections of shoes, handbags, jewelry, and denim. It offers a personalised shopping experience based on members' indicated fashion preferences.

TechStyle Fashion Group is the parent company of a portfolio of five online subscription service brands including JustFab, FabKids, ShoeDazzle and Fabletics.[1]

History

The company was founded by Don Ressler and Adam Goldenberg in March 2010.[2] Kimora Lee Simmons joined JustFab as President and Creative Director in September 2011.[3]

TechStyle (operating under the name JustFab) received $33 million in funding from US venture capital firm Matrix Partners in 2011.[2][4] In 2012 the company received an additional $76 million from Matrix Partners, Rho Ventures, Technology Crossover Ventures, and Intelligent Beauty[5] and expanded its operations internationally to Canada, Germany, and the UK.[6]

In January 2013, TechStyle, then JustFab, acquired children's fashion subscription company FabKids. Despite the similarity in their names, there was no previous association between the two companies.[7][8]

Celebrities who have released collections through TechStyle sub brand, JustFab include singer-songwriter Avril Lavigne[9] and YouTube beauty gurus Elle and Blair Fowler.[10]

A television show about the TechStyle sub brand JustFab and Simmons titled "Kimora: House of Fab" premiered on the Style Network in January 2013. The show covered daily life at the JustFab offices, Simmons’ role as president and creative director, and the duties of the company's marketing, merchandising, and public relations departments.[11][12]

TechStyle continued international expansion into Spain and France after acquiring The Fab Shoes in May 2013.[13]

TechStyle (then JustFab) acquired rival shoe subscription service ShoeDazzle in August 2013, but the two companies continued to run as separate brands.[14]

In September 2013, TechStyle's CEOs Adam Goldenberg and Don Ressler announced that the company closed $40 million in its third round of funding to accelerate its already-fast international growth and enter new product categories.[15]

In August 2014, TechStyle (then called JustFab) closed an additional round of funding for $85 million which was led by Passport Special Opportunity Fund and included participation from existing investors Shining Capital, Matrix Partners, and Technology Crossover Ventures.[16] The additional round of funding brought the company's total capitalization to $250 million.[17]

In 2016, JustFab launched an "all size" campaign to promote that it's ready-to-wear collection would now include sizes XS to 3X, 24-34 and 16W- 24W.[18]

Fabletics, an online athletic wear retailer, was founded by Adam Goldenberg, Don Ressler and Kate Hudson in July 2013. In 2015, Fabletics was TechStyle's fastest growing label. [19] As of April 2016, Fabletics has 6 brick and mortar locations and announced plans to open 75-100 new stores over the next three to five years. [20]

Membership

Membership costs $39.95 per month and is automatically conferred upon making a purchase. The registration process requires members to complete a survey regarding their fashion preferences. At the beginning of each month, a "personal stylist" selects items based on these preferences, and the member can choose one of the selections, request new options, or skip the month altogether without charge.[21][22]

In December 2011, JustFab reached 4 million members.[23] By January 2013, this number had grown to 10 million.[24]

Criticism

The company's business model and credit card practices have been criticized as deceptive.They deduct money from account without notifying users.[25] In October 2011 a national class action lawsuit was filed against Just Fabulous, Inc.[26] In August 2017 JustFab was issued an ASA ban for luring customers into a subscription trap, via a promotion on its website. [27]

References

  1. ↑ JustFab Inc. "." Retrieved Jan 24, 2014.
  2. 1 2 Tomio Geron, Forbes. "Former Intermix COO Raises $33M For Fashion Brand JustFabulous." Sept 21, 2011. Retrieved Feb 22, 2012.
  3. ↑ Melissa Magsaysay, LA Times. "Kimora Lee Simmons steps into her new role at justfab.com." Sept 22, 2011. Retrieved Feb 22, 2012.
  4. ↑ Leena Rao, "Gilt Groupe Investor Matrix Partners Leads $33M Round In Fashion Retail And Styling Platform JustFabulous.", TechCrunch.com Sept 21, 2011. Retrieved Feb 22, 2012.
  5. ↑ Ingrid Lunden, "JustFab Just Nabbed Another $76M To Take Its Fashion Platform International And Beyond Shoes.", TechCrunch.com, July 26, 2012. Retrieved Aug 1, 2012.
  6. ↑ AllThingsD. "JustFab Raises $76 Million to Get Ahead in the Frothy Fashion Business." July 16, 2012.
  7. ↑ TechCrunch. "JustFab Acquires Subscription-Based Kids Clothing Service FabKids." January 18, 2013.
  8. ↑ PandoDaily. "Mother and child reunion: JustFab buys FabKids." January 18, 2013.
  9. ↑ Rachel Brown, Women's Wear Daily. "JustFab Links With Avril Lavigne's Abbey Dawn Line." Feb 7, 2012. Retrieved Feb 22, 2012.
  10. ↑ Sacramento Bee. "JustFab.com Announces Exclusive Collection with Online Fashion and Beauty Gurus Elle and Blair Fowler." October 16, 2012. Retrieved Oct 22, 2012.
  11. ↑ TechCrunch. "Kimora: House Of Fab Brings TV Audiences Behind The Scenes At Fashion Startup JustFab." January 23, 2013.
  12. ↑ WWD. "Kimora Lee Simmons' New TV Gig for JustFab." November 27, 2012.
  13. ↑ PandoDaily. "JustFab acquires The Fab Shoes in search of European domination, approaches $250M revenue rate." May 23, 2013.
  14. ↑ UpStart Business Journal. "Why the JustFab-ShoeDazzle merger was a fashion do." August 22, 2013. Archived February 21, 2014, at the Wayback Machine.
  15. ↑ "JustFab sews up $40M to become a global fast-fashion empire". Venturebeat.com. 26 September 2013. Retrieved 5 June 2017.
  16. ↑ "JustFab raises $85M at what sources say is a $1B valuation". Pando.com. 28 August 2014. Retrieved 5 June 2017.
  17. ↑ Carney, Michael. "JustFab raises $85M at what sources say is a $1B valuation". Pando. Retrieved 19 April 2016.
  18. ↑ Nieder, Alison. "New Sizes for JustFab". Retrieved 2016-12-14.
  19. ↑ Bhasin, Kim. "JustFab Is Reviewing Customer Service Practices as Complaints Pile Up". Bloomberg. Retrieved 19 April 2016.
  20. ↑ O'Connor, Clare. "Fabletics, Kate Hudson's Controversial Athleisure Brand, Plans To Open 100 Stores". Forbes. Retrieved 19 April 2016.
  21. ↑ http://www.justfab.com/how-justfab-works.htm
  22. ↑ Tricia Duryee, AllThingsD. "JustFabulous Secures $33 Million to Make Subscriptions Fashionable Again." Sept 21, 2011. Retrieved Feb 22, 2012.
  23. ↑ Andrea Chang, Los Angeles Times. "Online shoe clubs are in step with fashion-forward women." Dec 29, 2011. Retrieved Feb 22, 2012.
  24. ↑ Yeung, Ken. "JustFab gives its 10 million members access to children's clothing with acquisition of FabKids". The Next Web.
  25. ↑ Scambook Report "http://www.scambook.com/company/reports/146/JustFabcom"
  26. ↑ Scambook Report "http://www.scambook.com/blog/2011/10/justfab-com-justfabulous-class-action-lawsuit/"
  27. ↑ Stewart, Rebecca. "Shoe club JustFab hit with ASA ban after luring customers into 'subscription trap'", thedrum.com, August 16, 2017, accessed September 12, 2017
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