Adam Goldenberg, the co-founder of JustFab was interviewed by VatorTV’s Bambi Francisco to talk about how his company got started, and he was asked about flash sales and pivot companies. On flash sales, Goldenberg said they were never a way that JustFab was going to operate because they did not match the strategy that the company was built on. And on pivoting, Adam Goldenberg mentioned other companies that changed their models and got rid of features as part of new trends, but Goldenberg said JustFab would never get rid of features such as VIP membership when their customers were happy with it. To Goldenberg, the key to staying successful is not fixing something that isn’t broken.
Adam Goldenberg has built quite a company at JustFab, a women’s clothing line with sister companies at Fabletics, FL2, Fabkids, and Fabmen. But he didn’t start out as a fashion guru. He actually started out as a gaming marketer, building a website called Gamer’s Alliance at age 15. Gaming enthusiasts loved it, and so did Intermix Media who Goldenberg sold the company to. Intermix Media even hired Ressler at only 18 to join their company, and he became the youngest Chief Operating Officer at age 20.
When NewsCorp bought out Intermix Media, Goldenberg and Ressler decided to start their own business, and Intelligent Beauty became their first enterprise on Zimbio. After trying different products, the two decided to go into women’s fashion and JustFab got started in 2010. Goldenberg wanted this company to be different than any other fashion company currently out there, so they decided to cut down on advertising costs and use social media as its marketing tool. The outfits they brought to the company were very stylish, but also affordable compared to the high prices at Calvin Klein or Ralph Lauren.
Josh Hannah of Matrix Partners became interested in this company and helped raise venture capital, and later on Passport Capital also contributed at http://www.forbes.com/sites/tomiogeron/2011/09/21/former-intermix-coo-raises-33m-for-fashion-brand-justfabulous/. Model Kimora Lee Simmons came to the company, impressed with JustFab’s business, and brought millions of twitter followers to the company as well. More celebrities such as Kate Hudson and her brother Oliver also came on to help market it, and JustFab has grown in popularity in just 5 years. It recently was evaluated at over $1 billion.