TechStyle Fashion Group, a brand-building platform that operates companies such as JustFab, Fabletics, Savage x Fenty, FabKids and ShoeDazzle, said today that its global VIP membership has surpassed 5 million active members. The milestone makes TechStyle Fashion Group one of the largest membership-based fashion companies in the world, according to the firm, which exceeded $750 million in annual revenue and experienced double-digit retail growth in 2018.
TechStyle said it raised the bar for e-commerce membership programs by “championing a more flexible, inclusive iteration of the concept that allowed the company to offer high-quality and stylish collections on a monthly basis at an unsurpassed value.” Its VIP membership is free to join and enables access to discounts on all products, which includes free shipping and personalized style suggestions. In exchange, its members are asked to peruse the brand’s site or store once a month to preview new collections and either “buy” or “skip” the month. For members that skip, they are assigned a brand credit with no expiry.
And its VIP membership platform offers a unique take on sustainability: This type of customer and brand relationship “drives the company’s efficient business cycle, allowing for more affordable prices and less obsolete inventory,” benefiting both the shopper and the retailer. The company began its membership e-commerce program with its first direct-to-consumer brand JustFab in 2010.
Adam Goldenberg, TechStyle Fashion Group’s co-chief executive officer and cofounder, said its VIP Membership program “has allowed TechStyle to build a closer, more meaningful relationship with our global customer base. The program’s benefits have driven customer satisfaction across our brands to levels previously unattainable in fashion, while also enabling unprecedented business efficiencies. Scaling the program to more than 5 million members has created new opportunities for enhancing every aspect of our business, from inventory management and distribution to merchandising and customer support.”
Additional achievements in 2018 include the firm’s launch of intimates brand Savage x Fenty, a partnership with the musician Rihanna, which reached 12 countries in a single day through its proprietary Fashion OS technology and suite of services, the company said. And its enhancement of OmniShop, a proprietary omnichannel solution that powers 25 of Fabletics’ stores, bolstered the brand’s sales to exceed $300 million in annual revenue “by gleaning customer insights from in-store experiences,” according to the firm. Its same-store sales experienced a 24 percent increase year-over-year and the company has plans to expand its retail footprint to 100 stores.
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