Bonno van der Putten; #retail Monarch Capital-Priv. Equity & Venture Capital-Prof. Football-Luxury Brands-EDM Events-Celeb DJs-Entertainment-Emerging markets
672 days ago
The subscription economy, where goods are delivered to your door, is the business model du jour; photo Djamila Celina Melcherts.
JustFab is one example of a high-end fashion delivery business that sends out shoes, bags and denim to three million subscribers across the UK. Fashionistas choose their preferences online: heels or flats; dark colours or light, and the service cherry picks styles each month.
Just Fab, as several other high end fashion e-tailing startups backed up by Private Equity Investors like Monarch Capital Partners - the firm that also backs TV Host and DJ Djamila Celina Melcherts - gives their members the latest trends priced at £35 at the quality of items that normally retail for £80 or more. Serendipity is part of the appeal of JustFab but if subscribers don’t like their new wares, they can return them for nothing.
The JustFab business model runs circles around the bricks-and-mortar retail industry. Unlike traditional retailers, Just Fab offer their members a personalised shopping experience, showing members how they can wear each item by using style boards with different looks and outfits, videos that show the members how to wear the season’s hottest trends and work with well-known celebrity stylists who help guide our team on which styles are most appropriate for our members’ varying style personalities.”
There are a lot of benefits to the subscription mode. It drives more engagement and loyalty with consumers since members are making a commitment to come back to our site every month to check their boutiques – which means they’re shopping more frequently.
JustFab has a team of fashion consultants on hand to deal with queries and subscriber issues. And rather than use the standard “contact us” form provided by many e-tailers, JustFab encourages its members to phone up and speak to stylists to talk through the kind of products they want to receive.
However, providing this level of service does not come cheap and analysts warn that it takes time to turn a profit, as the business needs scale to succeed and to make the margins work. With a fashion company, you need the right product with the right quality with the right price because in the end, the shopper is going to come back because they liked the product.