TechStyle Fashion Group, the company behind Kate Hudson’s Fabletics; the children’s brand FabKids; Rihanna’s lingerie brand, Savage X Fenty; and the shoe retailer Shoedazzle, has amassed 5 million members for its discount retail program.
Those members were a large driver behind the $750 million in transactions the company saw for 2018, according to co-chief executive Adam Goldenberg. “We were profitable in 2018,” Goldenberg says. “We can grow now, profitably [and] we can grow both topline and bottom line.”
Numbers like those should give the company a powerful position to head out to public markets, but Goldenberg says the company is taking a wait-and-see approach. “At some point we do need to think about public markets to bring liquidity to our investors and employees,” he says. “We don’t have a set timeline in mind there.”
Designed to make the company’s wares even more attractive for style- and cost-conscious consumers, the VIP Membership is a free offering that gives customers 50% off of all of the company’s products and additional perks like free returns and early access to new product launches.
To be a member, customers need to visit a brand website at least once a month and see shop new collections or skip a month. Members can skip as many months as they want and they have no requirement to buy anything.
If a member forgets to skip a month they’re charged a membership credit that can be used at any time. The membership offering has provided results for the company, which says it sees 85% of its revenue come from repeat buyers across brands and one quarter of its new members coming from referrals.
Source: TechCrunch
