E-commerce Characteristics of Adam Goldenberg
Fabletics is opening its seventh store in Mall of America, Minnesota. Its characteristic goods are the fashionable leggings and inexpensive hoodies. The two thousand square foot store space is likely to be repeated throughout the country. In 2015, a large portion of Fabletics’ revenues were drawn from its e-commerce operations. The co-founder and actress, who enjoys a great following on Facebook, is partly responsible for the good results. JustFab co-founder and CEO says that the aim is to mirror the store experience to the online feel. Faletics, according to its co-founder, plans to open a lot more stores within the next five years or so.
Unicorn or Not
Adam believes it was the contribution of all his employees, who have been building brands that appeal to the customers, that has established his company. Adam admits that the external validation by customers is a great feeling, but this does not change the way the company is run on a day to day basis. The status of unicorn is indicative of a company joining the special club. Though unicorns are not common, they have become much more prevalent in the economy of the U.S. JustFab is now in the league of unicorns having entered the one billion dollar club. In 2014, over 30 companies entered the billion dollar club. This is an indicator of an increase in innovative and creative individuals who are expressing ideas that propel companies to great pay days.
When News Corp bought MySpace, employees like Adam Goldenberg and Don Ressler left the company and later started their own company. The trend of employees jumping ship to go and start their own ventures is not unique to these two. The duo went on to launch Intelligent Beauty: a business incubator. Intelligent Beauty came up with DERMSTORE and JustFab.com. While one is an online market place for cosmetic and skincare products, the other is a subscription service that features monthly showrooms for design plus fashion. Adam says that, all brands under his JustFab umbrella offer discounts if the clients sign up for a $39.9 and $49.9 recurring subscription monthly. ShoeDazzle, which is under JustFab, offers such discounts. http://www.crosscut.vc/adam-goldenberg
Adam points out that, 10 years ago e-commerce was viewed with skepticism. However, over $50 billion is online based today. He believes that, in the next 20 years, a good portion of shopping will be done online. Although the contemporary way of shopping will not vanish, online shopping will be more appealing and convenient in future.