JustFab Dominates The Internet Subscription Business

Recently, the LA Times ran an article about the extremely popular JustFab fashion line, which features Kate Hudson’s Fabletics active-wear. The article details how subscription-based retail companies are seeing a decline in customer loyalty and business.

In recent years, subscription based business was slated to be a giant trend. Customers could buy a membership from a company like Dollar Shave Club and receive a box of merchandise in the mail, containing items ranging from inexpensive to pricey. It was almost like getting a grab bag.

According to Bloomberg, JustFab was different in that customers explicitly chose what came in their grab bag. There were some dissatisfied customers due to the mildly confusing terms of agreement, which forced subscribers to buy something by the end of the month, or pay a small fee. Still, with the small percent of dissatisfied customers, JustFab continued to grow and blossom into a prosperous company, who is slated to soon go public.

They have added more wardrobe items to their inventory and have the powerhouse actress Kate Hudson propelling their cause. Other companies that relied on subscriptions to make sales have sputtered to a struggle or disappeared completely. It would seem that the subscription-based companies were just a bubble that has popped, but JustFab has survived that culling. To read the entire article, head over to the LA Times website.

Just Fab was just a small internet-based company that specialized in women’s shoes and handbags until their expert business practices caused them to grow. Now they sell all kinds of women’s apparel and even have an inexpensive athletic line sponsored by Kate Hudson.

Originating in their small Los Angeles office, they now have offices and support worldwide and only plan to get bigger. Officials speculate the company will go public soon, which means that ordinary people will be able to invest and make the store stronger.

Currently, the online store is subscription-based, but the future may hold brick and mortar storefronts for their merchandise. They will continue to provide fairly priced apparel for women all over the world, which is a great advantage to regular women who work hard and play hard.