The intersection of e-commerce and technology in the world of fashion is quickly growing into one of the biggest cross-streets in the consumer discretionary sector. In the fiscal year 2016, e-commerce revenue around the world totaled to a whopping $72 billion.
The aggregate, worldwide total is slated to jump up to an astounding $116 billion by the year 2021.
Fashion retailers, both entirely new and spinoffs of large fashion brands, are rapidly entering the sector in hopes of being the first to strike proverbial gold – modern tech-savvy consumers that prefer e-commerce as their number-one means of paying for goods. Some of these organizations have tried to get ahead of the crowd using the world’s most recent customer relationship management systems, whereas others have attempted to gain market share by engaging in inbound marketing on their social media pages like Facebook, Twitter, and Instagram.
Adam Goldenberg and Don Ressler are the founders and chief executive officers of TechStyle Fashion Group. Don’t know them? You’ve probably heard of them or one of their many brands at some point in the past seven-plus years.
JustFab was founded in 2010, when the retail industry competitor became the first brand to offer recurring memberships for boots, flats, and other types of shoes. It’s common knowledge that JustFab was the very first organization to engage in such activity, marking itself as a pioneer in the subscription industry, in which consumers receive items through the mail on a regular basis.
A vital aspect of JustFab’s success was its VIP monthly subscription. Whereas “regular” customers without any special subscription could purchase pieces of footwear for a markdown nearly equivalent one-third lower pricing than their typical counterparts. VIP customers also received the inside scoop on special product offerings and limited-time promotions, in addition to the perks of free shipping and the accumulating of loyalty rewards points.
Throughout the first two years of JustFab’s existence, JustFab had already attracted, in aggregate total, a whopping 6,000,000 Internet users from around the world. In quarter one of the 2012 fiscal year, JustFab facilitated the sale of 2,500,000 pairs of shoes.
From 2013 to 2016, JustFab was able to purchase the operating rights – done by purchasing more than 50% of interest within a company – to FabKids and ShoeDazzle. It was during this time period that Kate Hudson was brought on board with Fabletics, a clothing line featuring athletic products that branched off from JustFab’s primary product chains.
At the end of this period – in 2016 – JustFab decided to reincorporate itself as TechStyle. To this very day, the former JustFab still goes by TechStyle, part of a massive overhaul that was designed to change retail sales of fashion lines and marketing of these clothing lines.
Unlike other digital stores, department stores, and malls, TechStyle brought together data mining, commerce by the membership, and personalization of the entire website and the products customers actually received each month.
Believe it or not, Mr. Adam Goldenberg began his career in the world of startups at the ripe, young age of 13. An avid Internet user, Mr. Goldenberg created a message board on the world wide web that turned into Gamer’s Alliance, a popular digital outpost for gamers all across the web.
When Adam was only 17 years of age, Gamer’s Alliance was sold to Intermix – which happens to be the parent company of MySpace. He stayed with the site by working for Intermix. When he was 19, he was given the spot of chief operating officer, something very few people his age can say they’ve been awarded before.
Intelligent Beauty was next for Mr. Adam after he departed from Intermix. The site gave birth to JustFab, among others, the most popular store of the then-infant chain.
The Power Of Technology
As Goldenberg had utilized technology and the Internet all his life, he decided to seek out a means of capturing customer interest through technological devices hooked to each other through an active Internet connection.
Thanks to Adam’s familiarity with technology from an early age, TechStyle started out by producing FashionOS, a proprietary platform that allowed consumers to search through the many clothes, shoes, and other products its listers have for sale.
Although FashionOS cost roughly $70,000,000, its six unique components helped – and still help, today – TechStyle succeed in today’s ultra-competitive tech-friendly marketplace.
Goldenberg and Ressler met at Intermix in the late 1990s, where they both were hired around the same time.
Don Ressler is arguably best known for selling FitnessHeaven.com in 1997 to Intermix. Prior to his divestment of the operations of FitnessHeaven.com, Mr. Ressler was its President and Chief Executive Officer.