The Rise of Adam Goldenberg in E-Commerce

Adam Goldenberg is an American investor who has founded several companies. He is the Co-Founder and Co-Chief Executive Officer of Just Fabulous Inc., now TechStyle and also Intelligent Beauty, Inc. Goldenberg has an impressive legacy in internet promotion, development and management of products.

On December 7, 2016, Adam Goldenberg appeared on CNBS together with Fabletics owner, Kate Hudson. Hudson said they want TechStyle Fashion Group to go public. Goldenberg said the main aim of the move is “to go bigger.” He added that such a decision needs the involvement of other investors in the company.

Adam Goldenberg projects a subscription fee of $650 million this year by TechStyle Fashion Group. Hudson’s Fabletics brand will contribute around $250 million. Fabletics makes most of its income from its monthly membership fee of $50. Goldenberg said that as the company’s CEO, he has the role of telling people the importance of enrolling in this membership program by Fabletics.

On August 2016, an announcement was made regarding JustFab’s renaming to TechStyle Fashion Group. The change of name was a sign of the company’s continued use of technology by working with companies like JustFab and ShoeDazzle among others.

Read more: TechStyle’s data-driven fashion – CNBC Video

Goldenberg said that when they started the company with Don Ressler, they aimed at altering how shopping is done by enhancing on-trend fashion. He said the company has remained true to its vision. He added that this has helped the company become established in the fashion industry.

In April 2015 on techstyle.com, Goldenberg talked about JustFab and its future at the Splash Oakland, an annual event held by the founder and chief executive officer of Vator, Bambi Francisco. In 2014, when JustFab was just three years old, it earned $85 million through membership. This moved the company’s total earnings to $300 million, making it a “unicorn,” which refers to business with over a $1 billion valuation.

Goldenberg said joining that special club will not affect the way they operate. He added that that round of financing did not have as much impact on how the company operates as other rounds they had previously.

He said investing in the unicorns is worth. He noted that valuations are high in both public and private stock on rgtadvisors.com. He said the unicorns that are overvalued will definitely die and exit.

Goldenberg looked at the apparel and accessories’ $360 billion a year market in North America. He noted that despite the industry not growing, changes are being observed on the way people are shopping. Despite the number of customers that are shopping is increasing every day, there is a significant number that will still opt for storefront retail.

Learn more about Adam Goldenberg: http://www.hudl.com/profile/4913266/adam-goldenberg

The Success of Fabletics

Fabletics is an online subscription store that deals with sportswear and accessories for women. Fabletics has opened 18 brick and mortar stores apart from its online shop. Fabletics members are offered customized outfits that have been selected for them depending on their fashion and lifestyle preferences. Fabletics is a JustFab subsidiary that changed its name to TechStyle Fashion Group in 2016. Fabletics is owned by Kate Hudson. It has been able to register massive success since its inception in 2013. The online subscription retailer has grown a $250 million business in 3 years. Fabletics has been a big competitor of Amazon in the e-commerce market.

 

Fabletics employs a subscription mechanism that has proven to be very successful in order to sell clothes to its clients. Customers are attracted to aspirational brands, and they combine this with membership and convenience to have a successful business. Brands of high value were defined by quality and the price of the services or goods in the past. The concept is no longer sufficient to guarantee success with the current economic shift. The modern customer considers a brand that has high value based on customer experience, last-mile service, exclusive design, brand recognition, and gamification elements. Fabletics has been able to take all these into consideration.

 

Fabletics likens its strategy and position to Apple and Warby Parker. Forbes said that this is paying off for the company since it will soon open more physical stores. This will add to the already existing physical store located in places such as Florida, Hawaii, California, and Illinois. Gregg Throgmartin is the general manager of Fabletics. He says that their membership model is what enables them to provide customized service and on-trend fashion at half the price of their competitors. Gregg adds that it is easier to impress customers when you understand them well and their needs. One of the methods that Fabletics have used in registering success is through the reverse showrooming.

 

Fabletics has been able to turn browsing into a benefit through the reverse showrooming technique. Customers take a survey regarding the form of workouts that they do. Fabletics is known for selling quality products. This is one element that has been able to attract customers. Customers are guaranteed that they will get value for their money. Their top selling sportswear is the legging. It is made of high-quality material that is made to suit all women and offer utmost comfort regardless of their size and shape.

 

Fabletics has a variety of styles for customers to choose. Their outfits have different patterns, fabrics, and are fun. They ensure that they offer the on-trend outfits to enable their members to stay stylish. The outfits offered by Fabletics are cost-effective. They rival with other expensive brands. You are guaranteed to find something at Fabletics regardless of your budget. Regular members and VIP members also get to enjoy great discounts from time to time. Fabletics website looks very nice. It is easy to navigate. This makes the shopping experience of a customer easy and fun.