One trend that’s been going on in businesses of all kinds is cutting out middlemen thanks to the power of e-commerce, and that’s what Adam Goldenberg and Don Ressler did with their company JustFab. JustFab is part of Goldenberg and Reader’s Techstyle Fashion Group which also includes Fabletics, FabShoes (formerly ShoeDazzle) and FabKids. The way they sell their products is through giving their customers a personalized fashion quiz and pairing them up with matching styles. They have free shipping for any orders over $39 and all members have discounts and bonus credits when they become VIPs. But Goldenberg and Ressler have also been able to sell their apparel much cheaper than other retailers because they’ve minimized advertising costs to go with no middleman. They also announced all Techstyle apparel lines were now all-inclusive sizes.
Long before becoming a fashion company co-CEO, Adam Goldenberg started an online ad network known as Gamer’s Alliance which was sold to Intermix Media. Don Ressler was a marketing consultant for companies who were looking to revolutionize the internet with interactive media and utilize web space for sales. He founded FitnessHeaven.com which was also bought out by Intermix Media. Intermix Media was the parent company to MySpace, and Goldenberg and Ressler had big plans for different marketplace companies to take it big. But despite their success in doing so, things changed when Rupert Murdoch’s company News Corp bought MySpace in 2005.
Adam Goldenberg and Ressler decided it was time to take their health and beauty marketing and sales ideas elsewhere, so they started a small company in Goldenberg’s apartment known as Intelligent Beauty. Sales became quite profitable with this company, but Goldenberg and Ressler still wanted an angle that would make this company unique. They came up with an off-the-wall idea to launch a fashion brand. They didn’t know much about that field, but they lived in Los Angeles and had people they could bounce ideas off of.
Goldenberg and Ressler attracted the interest of several celebrities when they announced their new inexpensive fashion store idea. Those celebrities included model Kimora Lee Simmons, and later actress Kate Hudson and pop singer Demi Lovato. By 2010 JustFab had become reality. Venture capital companies including Matrix Partners, Crosscut Ventures and Passport Capital eagerly jumped onboard, and by 2014 JustFab was a billion-dollar company. It’s new name of Techstyle Fashion Group was chosen due to frequent use of big data in sales and marketing.