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A Look At JustFab’s Success Despite Hurdles

Posted on 16 July, 2016 in Online Business News

What Is JustFab?

JustFab is an online fashion retailer. The company also has numerous fashion brands under its control including the sporty Fabletics brand designed by Kate Hudson and FL2. JustFab is also the owner of former online retail rivals ShoeDazzle and FabKids. They were acquired by JustFab and are now part of the company that does over a billion dollars in online sales now.

How Does Its Business Model Work?

JustFab has a subscription based membership business model. Members who are called VIP members pay a monthly subscription fee of $39.95 and are offered special deals, exclusive products, personalized recommendations and sales. Subscribers have an option to skip a month if they do not like the offerings or deals in the month. This must be done by the 5th of the month however. Otherwise, you will be charged the $39.95 monthly subscription fee.

As for the $39.95 fee, it can be used on any item offered for sale on JustFab. The subscription fee is not a fee to be able to shop, it is a credit that can be used to shop on the entire site. It also gives you access to special sales and exclusive offers that are only available to VIP subscription members at JustFab. The $39.95 credit also does not expire. If you decide to shop in a month but choose not to buy anything, you can still use it the following month. See: http://www.fabkids.com/

What Is The Outlook For JustFab Into The Future?

JustFab is one of the few online subscription based retailers that is actually performing better than most of its competitors. The subscription based market has actually seen a major slow down and a slew of companies going bankrupt. Groupon for example which offers a subscription based service for access to elusive deals and promotions has seemed to have leveled out in its earnings. JustFab meanwhile is seeing increasing profits year after year. The company is also planning on opening actual stores where its clothing will be sold directly in major shopping areas. The company is also preparing for an initial public offering of its stock.

Read more: JustFab heads toward IPO even as other subscription start-ups struggle

One Response to “A Look At JustFab’s Success Despite Hurdles”

  1. Jean Telly says:

    This provides a very positive outlook for the company. For more on the status and future of JustFab check out this LA Times article about JustFab. I know for sure that essay services will be the hotest business very soon.