TechStyle hits 5 million members for its retail empire
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 top line 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 percent off all 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 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 percent of its revenue come from repeat buyers across brands and one quarter of its new members coming from referrals.