Unicorn companies are those who have hit over $1 billion when being evaluated by independent auditors, and one company to have hit that mark in just 4 years was JustFab, a company started by Adam Goldenberg and Don Ressler. Goldenberg was interviewed by VatorTV’s Bambi Francisco to talk about what becoming a unicorn means for JustFab. Goldenberg told her it really didn’t change the way they do business or the values of the company, but rather was something to be proud of in saying a great company was built. Goldenberg was also asked about online shopping and the overall direction of the fashion industry on Zimbio. He talked about how online shopping has increased to $50 billion in sales over the last year from $30 billion the previous year, and believes that soon more than half the shopping will be done online, although JustFab does now have traditional store outlets open.
Adam Goldenberg’s story about starting up JustFab is not the story you might expect. He was a gifted website designer in his early days, a young man who had started up his own marketing business at only 15. He joined the executive team at Intermix Media, a company that parented a lot of future social media brands, including MySpace. Goldenberg was the Chief Operating Officer for Intermix Media for about 5 years, and he met another entrepreneur, Don Ressler who he started working on marketing projects with.
So Goldenberg and Ressler left the company and started up Intelligent Beauty, a home-based company that began selling various health and beauty products. Then Goldenberg came up with an idea to start a women’s fashion retail store, and that became the starting point for JustFab. Goldenberg didn’t know a lot about fashion, but he brought in some experts who knew all about style, including model Kimora Lee Simmons who became JustFab’s president. The way that Goldenberg and Ressler wanted to run the company was to setup an affordable monthly subscription for users, and they could use the funds in their account to buy what they wanted. And Goldenberg and Ressler didn’t use billboards or TV commercials to market this company, but instead used social media such as Facebook and Twitter, relying on social media’s word of mouth to do it. See: http://www.forbes.com/sites/tomiogeron/2011/09/21/former-intermix-coo-raises-33m-for-fashion-brand-justfabulous/