JustFab Continues to Grow

JustFab continues to grow its online business, the company sells yoga pants,handbags,and shoes to over two million people according to the Los Angeles Times. It is a subscription based company that is behind brands like ShoeDazzle and Fabletics.

Recently these type of companies have lost sales and many have been sold. JustFab is surviving after it became more well known due to a fundraising effort two years ago that made the company worth $1 million. In 2016, it made a profit the first quarter.

It is projected that the company will make $650 million this year. Co-founder Adam Goldenberg says that JustFab is on the right track for growth. They plan to make a name change that will be announced in August. Todd Tappin was brought on as a financial officer fueling speculation that the company may go public.

Goldenberg said given the amount of funding they have it is most likely they will eventually go public. JustFab has expanded its line to children’s clothing, and active wear. Members can shop at the beginning of each month from their entire inventory. They never send the customer something that they did not pick out. They are billed $39.95 each month.

To clarify their subscription process so customers are clear on how it works they have added videos and a customer service staff. Shoppers enjoy savings and the company designs its own products working with factories around the world.

JustFab has several designers that work on individual products for five companies they have. They produce their own commercials and product photos. In 2016, JustFab spent over $1 million in advertising. They have recently added a sample room.

The company has been featured in many well known magazines like Style Watch, Woman’s Day, Redbook, InStyle, Family Circle, and Good Housekeeping. Many women celebrities and models wear their line of shoes and clothing.

Reference: http://www.latimes.com/business/la-fi-justfab-subscription-20160629-snap-story.html