Ecommerce has changed the way consumers shop and put that together with fashion and technology and the bottom line is rising. Ecommerce revenues are projected to hit more than $116 billion by the year 2021. A business model that is making great headway is membership sites. One company that is making great headway with a membership site is TechStyle Fashion Group. With Co-Chief Executive Officer’s (co-CEO) Don Reseller and Adam Goldenberg, the business model of subscription membership has proven to be successful.
The business model took off in 2010 JustFab, also headed up by Goldenberg and Don Ressler, launched the first ever membership footwear program. Members received more than 30% off retail price through this method of purchase along with exclusive access to special promotions, as well as products. Members also accrue loyalty reward points and no cost shipping of products. In two years the membership grew to six million members and in 2012, the first quarter, JustFab sold more than 2.5 million pairs of shoes.
JustFab went on to acquire ShoeDazzle and FabKids and expanded to Germany, the United Kingdom, as well as several other countries. The group also launched Fabletics with celebrity Kate Hudson and in 2016 rebranded itself as TechStyle. The rebrand better suit its image in fashion retail and marketing.
Adam Goldenberg, co-founder of the company began his career in business and as an entrepreneur when he was just 13 years old. He started an online bulletin board that eventually turned into a gaming site called “Gamer’s Alliance.” When Goldberg was 17 years old, he sold the gaming site to Intermix and soon after offered Goldenberg the position of Chief Operating Officer (COO). After taking his leave from Intermix he founded Intelligent Beauty (IB), an ecommerce site. IB generated several other companies including JustFab and DermStore. Goldenberg grew up with technology and it became a working part of his business plan. He always saw ecommerce as the way to go to build a digital brand.
Goldenberg and Don Ressler met while both worked at Intermix and later partnered to build an ecommerce company. They chose the fashion industry and knew their strong point would have to be customer satisfaction. Everything would hinge on elevating the customer experience and to create a system and process that is more efficient while maintaining relevancy. TechStyle developed the personal styling component that offers a better shopping experience. TechStyle has an employee force of 2,000 staff members and 4.5 members. They are on-track to make $700 million in revenue this year alone.