Fashion based subscription service, Just Fab Inc., has turned a profit for the first time ever in the first quarter of 2016. The company is projected to make a sum of $650 million this year, brining a new record compared to last years $505 million.
The LA Times recently reported on the success of the subscription based fashion service with over 4 million subscribers. Their article states “Two years ago, the company gained much-coveted “unicorn” status after it was valued at $1 billion following a fundraising round.”.
The company has upcoming plans this month (August) for a corporate name change. The co-founder Adam Goldenberg said the new name will avoid the word “fab”. He also mentioned that the company is heading towards an IPO in the future.
Just Fab’s success with selling inexpensive fashion accessories through a subscription based model stands out in a sea of dead companies that have failed to turn a profit via similar subscription services.
From Justfab’s corporate website, their corporate promise reads “To reinvent the global fashion business in a way that personally engages every customer and delivers on trend fashion at exceptional value.”
When a user subscribes to the service, they take an introductory ‘Personal Style Quiz’ designed to help Justfab better understand their shopper’s needs. It also helps the company find styles that work with their customer’s existing apparel, and accessories.
Without the need of wasted advertising, and creating clothing that people are not interested in, the company has managed to reduce their costs by 30-50%. This is due to the personalization of their customer’s orders, and the costs cut on advertising their products. Learn more about Just Fab: https://en.wikipedia.org/wiki/JustFab
With over 50 million products shipped in 10 different countries, and 12 million Facebook fans, it’s easy to see why Justfab is growing so steadily in a waning subscription based market.