Some consolidation in the world of fashion commerce: JustFab and ShoeDazzle have just announced a merger, which they say will create the world’s biggest fashion commerce player, with 33 million members and projected revenues of $400 million in 2014, with a 15% market share in footwear in the 18-35 female demographic.
The news comes after a report in Pando Daily yesterday noted that they two were in talks, although it cast it as an acquisition by JustFab. At the same time there have been murmurs of other competitors like Beachmint facing difficult times, although Beachmint has refuted the allegations. In any case, there is a lot of overlap in these companies’ business models, and with scale a large priority to achieve decent margins, it’s no surprise that we are seeing consolidation.
Adam Goldenberg and Don Ressler will serve as co-CEOs with ShoeDazzle co-founder and President MJ Eng continuing to run ShoeDazzle, the companies said. Brian Lee will join the board of directors at JustFab.
“Today we are creating one of the world’s largest and fastest growing fashion e-commerce companies, with a clear path to creating a multi-billion dollar fashion company here in Los Angeles,” said Adam Goldenberg, co-CEO of JustFab in a statement. “By maintaining the distinct JustFab and ShoeDazzle brands, we will be able to significantly broaden our reach in the United States, and continue to take substantial market share from traditional footwear brands, retail players and e-commerce competitors.”
We’ll be speaking with both Goldenberg and Brian Lee of JustFab later and will update the story.
Press release below.
JustFab and ShoeDazzle Announce Merger to Create
the World’s Largest Fashion Subscription E-Commerce Company
Game-changing Merger Will Accelerate Combined Company to Profitability in 2014
LOS ANGELES, Calif., August 21, 2013 – JustFab® and ShoeDazzle® today announced that they have entered into a definitive agreement to merge the two industry leaders in a strategic move that will create the worldwide market leader in fashion subscription e-commerce, and redefine the way women shop online.
With the merger, the two brands will be able to expand their customer base in the United States and further accelerate international and category expansion plans, as well as leverage significant scale and operational synergies. The combined company is expected to be profitable in 2014.
“Today we are creating one of the world’s largest and fastest growing fashion e-commerce companies, with a clear path to creating a multi-billion dollar fashion company here in Los Angeles,” said Adam Goldenberg, co-CEO of JustFab. “By maintaining the distinct JustFab and ShoeDazzle brands, we will be able to significantly broaden our reach in the United States, and continue to take substantial market share from traditional footwear brands, retail players and e-commerce competitors.”
“Both of our brands have seen high growth and success over the last three and a half years, and with the synergies between our complementary businesses, it made sense for us to combine our strengths,” said Brian Lee, ShoeDazzle CEO. “This merger gives us the scale to create a truly global, multi-brand lifestyle fashion company.”
“Together, we have the opportunity to accelerate growth plans for both brands under the umbrella of a single organization,” said Don Ressler, co-CEO of JustFab. “With the combined reach of over 33 million members, and the ability to provide a wide array of products and styling services to women all over the world, we are poised to generate over $400 million in total sales in 2014.”
Mr. Goldenberg and Mr. Ressler will serve as co-CEOs of JustFab Inc., which will operate a portfolio of lifestyle fashion brands including JustFab, ShoeDazzle, FabKids and Fabletics. ShoeDazzle President and co-founder MJ Eng will continue running ShoeDazzle, while Mr. Lee will join JustFab’s board of directors. As part of the merger, the two brands will be moving in early 2014 to share a new campus in El Segundo.
About JustFab Inc.
Founded in 2010, JustFab Inc. is a lifestyle fashion company that offers an engaging and personalized shopping experience through its portfolio of brands including JustFab (www.justfab.com), FabKids (www.fabkids.com), and Fabletics (www.fabletics.com). JustFab continues to change the way women shop for fashion all over the world, giving over 15 million members in the US, Germany, Canada, the United Kingdom, France and Spain the celebrity treatment every month as they receive a new and customized selection of shoes, handbags, jewelry and denim. FabKids is a leading children’s apparel brand that offers busy parents a new way to keep growing kids in stylish, affordable and ready-to-play outfits. Launching in October 2013, Fabletics will offer high quality athleticwear and accessories for today’s modern woman.
ShoeDazzle is the original online personal-styling innovator, treating millions of women to a monthly showroom filled with on-trend, personalized shoe and accessory recommendations. At the helm of ShoeDazzle’s style team is Chief Stylist Rachel Zoe: fashion icon, designer, and world-renowned stylist. Devoted to pampering their clients with world-class service, “Daily Fix” deals, and both exclusive ShoeDazzle label and designer-brand styles—the company curates a personalized experience based on their individual style profiles, offers fashion inspiration and guidance, and gives its members expert advice on how to wear the latest trends. ShoeDazzle also offers VIP Membership: a members-only “Shoe Fund” program for $9.95 per month which you can spend or save and have it roll-over to the next month, 10-25% off all full-price items, free shipping off all orders, and more. ShoeDazzle has been making women look and feel beautiful since 2009. The company boasts award-winning client services, over 2 million Facebook fans and more than 18 million clients.
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