In an attempt to create “the world’s largest fashion subscription e-commerce company”, two Los Angeles-based firms have collaborated in a deal that is expected to achieve enhanced mutual profitability by 2014.
“Ecommerce is all about that mass scale… Having that scale allows us to work with the very best factories,” said JustFab CEO Adam Goldenberg.
While the two companies will maintain their respective brands, the venture, which is now called JustFab Inc., is expected to help them dominate the market by generating more than US$400 million worth of sales next year.
JustFab is an e-commerce site that creates new fashion pieces curated and designed by top names in fashion. It offers up-to-date collections of shoes, accessories, bags, apparel and more. It even maintains its own fashion label as well as in-house designers.
JustFab is “the next evolution of fast fashion,” said Goldenberg. The site has 15 million members throughout Europe and the US and is drawing 500,000 new ones monthly.
Meanwhile, ShoeDazzle offers the best in terms of footwear and has a popular shoe-of-the-month service. As proof of its “dazzle”, the site brought celebrity stylist Rachel Zoe on board.
The CEO of ShoeDazzle, Brian Lee, hopes that the merger will create a “truly global, multi-brand lifestyle fashion company.”
The new umbrella company’s portfolio will include the brands Fabletics and FabKids, which are set to launch in October. Backers of the project include Matrix Partners, Rho Ventures and Technology Crossover Ventures.