Investment in a startup

The American project JustFab, an online retailer of shoes and bags, intends to lead an active international expansion. Currently, the company delivers in the United States and Canada, as well as, from this year, to Germany. The project started only in the 2010 year, but has already attracted a total of 139 million dollars for development. To date, JustFab has more than 6 million registered users, and the project page on Facebook has more than 1 million "likes".

With such business growth rates, the JustFab project is already provoking interest from experts outside the countries covered by the delivery. And assumptions that the company will soon compete with international Fast Fashion retailers, including Zara and H&M, do not seem absurd. The thing is in a rather original approach to virtual "merchandising." Unlike other online retailers, JustFab offers users a “personalized” service. In the language of the company, this is called "your personal boutique." Each potential buyer, before "inspecting" the JustFab range, passes a small test, choosing from the proposed options the shoes, images and images of celebrities that you like. As a result of processing the received information, an individual assortment is formed for each user. The retailer uses the “recommendation” format: a team of stylists working for show business selects current trends and designs.

The pricing used by JustFab is also interesting. The price tags for shoes, bags and accessories in the store vary between 49-79 dollars. However, there is an alternative pricing format: for subscribers (VIP Program) with a monthly fee of 39,95 dollars, prices are automatically fixed: $ 39,95 for any thing. So the retailer stimulates the regularity of purchases. If the subscriber does not make any purchases within a month, a “subscription” fee of $ 39,95 is deducted from his account.

Now the retailer’s audience is growing by half a million users every month, and the annual income in 2012 is expected to reach 100 million dollars (in 2011 - 28 million dollars). In addition, JustFab management will direct part of the investment to expand the range - it is planned to create their own clothing collections. On the technical side, the next development step will be the creation of mobile apps for shopping at JustFab. In an interview with reporters, the project management reports that the recent launch in Germany shows results above expectations. In September, the company will begin operating in the UK market. And in the first quarter of 2013, it is planned to cover several more European destinations, writes fashionunited.ru.