Don Ressler began his career as a pioneering entrepreneur. He developed a unique business concept and molded it into a full-fledged company. His startup was eventually bought out by a large corporation on crunchbase.com. Don went on to work for the organization and became one of the youngest executives in the country. His instincts and vision allowed him to record tremendous sales for the company he was working for. However, Don had larger aspirations. He went on to pursue more challenging projects by entering an industry that was extremely foreign to him. Ressler had little knowledge about fashion. He had never worked in the industry and had zero experience with making decisions in that market. His intuition told him that the success he had with online marketing would do extremely well in retail.
Don Ressler met another talented young business person while working for his previous employer. Adam Goldenberg was a successful startup entrepreneur in his own right. Don and Adam realized that the large corporation they were working for was not going to develop the business concepts that they wanted to explore. They decided to team together and venture into an entirely different industry. Women’s apparel was an unlikely avenue. However, Don Ressler was looking to innovate the method in which people obtained their merchandise. JustFab is the concept that the two businessmen created. The business model was simple but different from anything that existed at the time. Consumers would be able to go onto a website and view the products that were available for sale. A membership option was put in place that allowed shoppers to make purchases at a discounted price. The monthly membership also recorded the shopping habits of each individual and customized recommended items to there specific taste. The idea was to create a brand loyalty relationship to JustFab that would inspire customers to give them return business.
Many other online retailers suffered greatly from showrooming. Showrooming is where shoppers browse a site for items that they want and then go to another site to get them for a better price. The JustFab business model is not immune to showrooming. However, the monthly membership on internetretailer.com represents customers who have made a unique commitment to the services that the company provides. There are retail stores being opened in specific locations around the country. Company research shows that members who enter the store are more likely to make purchases after browsing. There shopping profile is available to store clerks. They are then able to have a more intimate experience with the customers in the store based on familiarity.
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