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Why Justfab's Business Model is so successful?

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Justfab’s Company Overview

JustFab Inc. is a leading fashion-subscription e-commerce site and lifestyle fashion brand that offers members a personalized online shopping experience. Founded in 2010, JustFab is based in El Segundo, California, and operates in the United States, Canada, the UK, Germany, France, Spain, Sweden, Denmark, and the Netherlands. The company offers many high-quality fashion products, including shoes, handbags, jewelry, and denim. It is known for its innovative use of technology, which allows it to deliver personalized outfits to its members based on their fashion preferences. Business Model: JustFab operates on a subscription-based membership model called the VIP Membership program. Customers sign up for a monthly subscription, which grants them access to exclusive discounts, personalized style recommendations, and early access to new arrivals. Members receive a curated selection of fashion items each month based on their style preferences and can choose to make a purchase or skip the month to avoid charges. The company emphasizes a personalized shopping experience, leveraging data-driven algorithms and customer feedback to tailor product recommendations. Members can explore a variety of styles and fashion trends, making the shopping experience more engaging and relevant to individual preferences. Revenue Model: JustFab's primary revenue comes from its VIP Membership program. Members pay a monthly subscription fee, which is converted into credits that can be used to make purchases on the platform. The subscription fee and revenue from product sales contribute to the company's overall financial performance. In addition to the subscription model, JustFab engages in traditional e-commerce sales for non-subscribers, allowing a broader audience to access its fashion products. The company also occasionally offers promotions, discounts, and special sales events to attract new customers and retain existing members. JustFab's success lies in its ability to blend the convenience of online shopping with a personalized and curated experience, creating a loyal customer base that values both style diversity and cost-effectiveness. Through this innovative business model, JustFab is a significant player in online fashion retail. JustFab operates on a subscription-based business model, where customers become VIP members by subscribing to the service. For a monthly fee, members receive a personalized selection of new styles in their boutique on the first of each month. They have until the 5th to either make a purchase or opt to 'skip the month', otherwise, they are charged the monthly fee which becomes a credit they can spend at any time. This model allows JustFab to maintain steady revenue and better predict inventory needs. JustFab's revenue model is primarily based on its members' monthly subscription fees. The company also generates income from individual purchases made by non-subscription customers who buy products at regular retail prices. Additionally, JustFab benefits from the high customer retention rate and repeat purchases, which the subscription model and the accumulation of membership credits encourage. The company's efficient use of data analytics for personalized recommendations also contributes to its strong sales performance.

Country: California

Foundations date: 2010

Type: Private

Sector: Consumer Goods

Categories: Retail

Justfab’s Customer Needs

Social impact:

Life changing: affiliation/belonging, motivation

Emotional: design/aesthetics, badge value, fun/entertainment, attractiveness, provides access

Functional: simplifies, quality, variety, informs

Justfab’s Related Competitors

Justfab’s Business Operations

Curated retail:

Curated retail guarantees focused shopping and product relevance; it presents a consumer with the most appropriate options based on past purchases, interactions, and established preferences. It may be provided via human guidance, algorithmic recommendations, or a combination of the two.

Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.

Digital transformation:

Digitalization is the systematic and accelerated transformation of company operations, processes, skills, and models to fully exploit the changes and possibilities brought about by digital technology and its effect on society. Digital transformation is a journey with many interconnected intermediate objectives, with the ultimate aim of continuous enhancement of processes, divisions, and the business ecosystem in a hyperconnected age. Therefore, establishing the appropriate bridges for the trip is critical to success.

Fashion sense:

In any customized sense of style, the golden guideline is to buy garments that fit correctly. Nothing ruins an ensemble more than an ill-fitting jacket, shirt, or trouser, regardless of the dress code or the cost of the clothing. Personal Values Sharing as a Brand Identity A significant component of developing a company that fits your lifestyle is growing a business grounded in your beliefs.

Fast fashion:

Fast fashion is a phrase fashion retailers use to describe how designs travel rapidly from the catwalk to catch current fashion trends. The emphasis is on optimizing specific supply chain components to enable these trends to be developed and produced quickly and affordably, allowing the mainstream customer to purchase current apparel designs at a reduced price.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.


Subscription business models are built on the concept of providing a product or service in exchange for recurring subscription income on a monthly or annual basis. As a result, they place a higher premium on client retention than on customer acquisition. Subscription business models, in essence, concentrate on revenue generation in such a manner that a single client makes repeated payments for extended access to a product or service. Cable television, internet providers, software suppliers, websites (e.g., blogs), business solutions providers, and financial services companies utilize this approach, as do conventional newspapers, periodicals, and academic publications.


Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

Mass customization:

Mass customization is a strategy that entails using modular goods and manufacturing processes to allow efficient product individualization. Mass customization refers to producing customized output using flexible computer-aided manufacturing systems in marketing, manufacturing, contact centers, and management. Mass customization is the next frontier for manufacturing and service sectors alike. Beyond the physical product, mass customization is utilized by a diverse variety of software products and services with the goal of developing strong connections with customers via personalization and suggestion.

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