JustFab Marching Toward $100M in Revenue This Year
In an update on how well its e-commerce business is faring, JustFab said its revenue is growing as high as the heels that it sells.
The El Segundo, Calif.-based online retailer, which sells purses, shoes and other accessories to members for a $39.95 a month subscription, said it has six million members and is adding about 500,000 more each month.
In an interview, CEO Adam Goldenberg also confirmed that JustFab is on track to hit $100 million in revenue this year, up from $25 million in 2010.
Its growth is being fueled by new members and international expansion, including launching in Canada and Germany.
The company, which raised $33 million in capital last September, also said it was opening up its membership club to a pay-as-you-go option that allows non-members to buy products at slightly higher prices without the monthly commitment. Otherwise, members must visit the site within the first five days of the month to either buy an item or say they want to skip a month.
JustFab, which has 320 employees, is not the only subscription company that has recently tweaked its business model. Last month, ShoeDazzle said its 10 million members will be charged only if and when they make a purchase — no matter if it is once a month or once every six months.
Goldenberg said the changes by two of the leading membership services are coincidental, and not a sign that the membership model isn’t working. In fact, he says, the business opportunity in front of the company, and other membership services like it, is huge.
“We are the largest or one of the largest in the space, but we are all really small. If you look at apparel, this opportunity is bigger than $100 billion. We’ll take market share from traditional retailers and others will, too,” Goldenberg said. “It’s going to be a big category in three to four years.”