Amazon not only sold $2.5 billion worth of goods, it introduced Prime members to new services. How should rivals compete in 2017?
VIP members get online prices in the store, while others pay a premium.
Fashion e-retailer JustFab is no longer a web-only merchant. It has opened what it calls a “flagship” store in Los Angeles.
“JustFab is now an omnichannel brand,” says co-CEO Don Ressler.
Online, the retailer sells mainly via retail subscriptions. Customers pay $39.95 a month for JustFab to create a personal boutique of items tailored to their taste. Shoppers may log in and use the fee to purchase one item, buy more for $39.95 each or ask to skip the month and not be charged. The retailer offers free shipping and free exchanges on all purchases, it says. Shoppers can also pay a premium price—between $49 to $69 per item—to buy items without becoming a member, although less than 1% of consumers do, according to co-CEO Adam Goldenberg.
Offline, the new store caters similarly to JustFab VIP members, who can pay online prices in the store while walk-in shoppers pay a premium, the retailer says. VIP shoppers must register at the store before purchasing to receive the web prices.
JustFab also built a mobile app for its in-store “stylists” to find inventory, create wish lists for shoppers and check on customer requests, it says. The stylists access the app on iPad mini devices.
“We've heard from our members that being able to see and try on products before they buy is still an important part of the shopping experience for them,” Goldenberg says. “With the JustFab flagship, we are giving current VIP members and new customers a new way to connect with the brand and to experience the JustFab world in person.” The e-retailer is based in El Segundo, CA, near Los Angeles.
JustFab is No. 201 in the 2013 Top 500 Guide. It sold $100 million worth of goods online last year, up 257.1% over 2011 sales. Among apparel and accessories e-retailers it is No. 64, accounting for 0.39% of web sales in the category.
The retailer also owns subscription sites for kids’ apparel (FabKids), shoes (ShoeDazzle) and women’s athletic apparel (Fabletics). It sells in the United States, Germany, Canada, the United Kingdom, France and Spain.