A Closer Look At JustFab’s Success
The LA Times recently took a look at JustFab, as it seemingly prepares to transition towards becoming a publicly traded company. As a subscription-based service, JustFab provides its members with a box full of products that cover a wide range of categories, and at significantly cheaper prices than would otherwise be available at a standard retailer. Learn more about Just Fab: https://en.wikipedia.org/wiki/JustFab
Analysts currently predict that the company’s business model will earn them roughly $650 million this year, up from $505 million last year. With these kinds of numbers, it’s easy to see how their last fundraising round had JustFab valued at $1 billion.
While writing on Just Fab, the LA Times did note that the subscription-based fashion retailer recently hired Todd Tapin to act as their chief financial officer. Tapin is no stranger to IPO transitions, which has all but cemented the company’s plans for the future to go public. For his part, JustFab’s co-founder Adam Goldenberg also confirmed that going public was a part of the company’s overall plan, but declined to specify details beyond that point.
It’s interesting to note JustFab’s future plans, given how few subscription-based services are able to reach that level of success in their life cycle. It speaks to JustFab’s quality of service and commitment to its customers that they have been able to build their brand up to the point that it can feasibly expand where few others have made it.
Goldenberg has noted that one of the secrets to Just Fab’s success is in doing what other companies didn’t. While others tried to capitalize on the model too early, Goldenberg instead focused on steering JustFab towards sustainability and versatility.
By acquiring a number of other fashion brands, JustFab services a wider audience while still preserving the savings from its subscription-based business model.
In fact, its cost-saving practices have allowed the company to expand its physical design space, in addition to expanding its control over the market. Designers at JustFab have an entire studio that allows them to quickly react to new trends in fashion and ensure that they’re providing customers with up-to-date clothes. Goldenberg‘s strategy is to provide customers with real value and build their loyalty through programs they care about.