Adam Goldenberg: Delivering Value for Amazing Fashion
Adam Goldenberg knows about catching the fashion trends. He works on managing the inventory at 97% accuracy when the inventory is projected. He is sure to pass the savings on to customers. In 2010, a company named Intelligent Beauty started a spin-off firm called JustFab. In 2011 JustFab received $33 million in funding, but by 2016 had changed its name to TechStyle Fashion Group. There are brands showcased named JustFab, Fabletics, Shoedazzle and Fabkids. Adam Goldenberg’s drive is to change the way people shop while also being able to give them tremendous value.
Adam Goldenberg tries to be where Fashion Avenue meets Silicon Valley with his business. JustFab/Tech Style Fashion Group has raised $300 million in 2016 and $650 million in revenue was expected last year. JustFab acquired The Fab Shoes, an ecommerce website which built on 3 million members in Europe. Fabletics was started on October 1st, 2013. Goldenberg is a success because of the way they build brands. Lululemon, H&M, Zara, was all built before social media, which changed the fashion brand landscape altogether. Technology allows for a direct relationship with the consumer.
In August 2014, JustFab got done with $85 million rounds of funding from Passport Special Opportunity Fund that included investors such as Shining Capital, Matrix Partners, and Technology Crossover Ventures. The secret to Goldenberg’s success is that brands focus too much on how to sell while Golberg’s companies focus on what to sell. JustFab does things by having a VIP membership for its customers besides focusing on what to sell. Their celebrity stylist membership is used in five countries outside of the U.S. New launches for JustFab include Fabletics, which is athletic wear. Other founders can see that JustFab is metrics-driven because they learn quickly as well as adapt to current market conditions. Early mistakes included price points for new product categories like jewelry and sunglasses. $39.95 shoes and handbags can work but members did not want to pay this amount for sunglasses or jewelry. JustFab looks for passion in its employees. He feels he can’t keep “B” and “C” employees but A employees need to be able to grow. Another mistake other companies have to make include no business-to-business marketing. On the other hand, marketing Fabletics was done well because it was designed to take on Internet marketing, which in large part establishes its success. TechStyle Fashion group also has an all-size campaign that in large part reflects it’s ability to adapt.