While hundreds of ecommerce subscription services are beginning to founder as the competition becomes fiercer, one company is bucking trends and may be looking to go public.
JustFab, a subscription service based around fashion and design recently hired on Todd Tappin, a skilled IPO executive which led to speculation about the company’s intentions.
In an LA Times piece, co-founder Adam Goldenberg said the company was indeed heading in that direction, but declined to lay out a time table.
“You typically take this company public at some point,” he told the publication.
In August, the company went through a corporate name change, one indicator that the company is looking to shed its former image as a startup and look more like a fully grown corporate entity. The new company name, TechStyle, Inc. includes the JustFab brand, as well as the company’s bevy of acquisitions, such as ShoeDazzle and FabKids.
While the company is doing better than their competition, it’s not without its critics. In 2014, (then JustFab, Inc.), the company paid $1.8 million to settle a lawsuit brought by attorneys in Northern California. The lawsuit claimed the company’s subscription terms weren’t explained well enough and led to customer confusion.
Goldenberg recognized the company’s issues and, according the LA Times, has revamped the process to make it easier to understand.
According to their website, JustFab’s subscription service allows users to have a tailor-made shopping experience that suits them month to month. Upon signing up, users are asked to fill out a survey that helps with the selection process, and a “personal stylist” selects items based off the answers. Users then may use their $39.95 monthly subscription fee to select the items they want, request new items, or skip the month without paying.
According to Internet Retailer and WWD, JustFab doesn’t just select things from a bin according to the TechStyle website. Everything is designed in-house, with multiple studios at the ready to seek out and design around new trends. The JustFab website also includes fashion tips, content boards, and complete outfits put together by company designers. Members also have access to designers when seeking fashion advice.