Business Strategy And Why It Works

1260 Words6 Pages
JustFab or Fabulous! A girl with seventy pairs of shoes can be safely called a shopaholic! I like to call myself a ‘shoeaholic’ rather than a shopaholic. In other words, it can be considered an expensive hobby because I enjoy learning about the newest shoe trends, their designers, the channels through which they are being offered and purchasing them. I am very passionate about shoes and believe in owning ‘what’s in?’ However, I am not someone who will splurge a significant amount of money on a single pair. I often find myself searching for the best promotions, discounts and affordable shoes for every new incoming season. During one of my long online browsing sessions, I stumbled upon an online shoe store called ‘JustFab’ or in my words…show more content…
Their product moto quotes “From design concept to finished product, we tailor the hottest of-the-moment looks to every style personality, giving our customers immediate access to the trends they love”. Their marketing strategy is to offer customized products by engaging consumer preferences and fast delivery of merchandise with the highest customer service. Sixty days warranty and returns free of shipping costs are also added benefits that come with the products! As mentioned earlier, they believe in offering affordable prices to their members and have successfully saved dollars for their members thought their pricing methods. JustFab follows a discount pricing strategy for their VIP members ($39.99) in contrast to the market price ($49.99) charged to guests and regular members. They are able to offer discount prices to VIP members because they follow a direct selling channel from the designer (manufacturer) to the consumer which eliminates any distribution costs. On the contrary, retail stores charge $80-$100 per shoe because of their middlemen and department store costs. The retailing format of online retailing also works to JustFab’s benefit because this provides them with broader and deeper assortments, more timely information for evaluating merchandise and finally personalization! An online channel allows JustFab to provide a vast number of SKUs to their customers which prevents them from merchandise unavailability. Generally, in a store the
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