PandoMonthly: Brian Lee on "Shoedazzle vs JustFab"

TL;DR

ShoeDazzle and JustFab started as friendly but competitive companies, but ShoeDazzle ultimately decided to stay independent. The competition between them drove ShoeDazzle's growth and forced them to innovate.

Transcript

so what happened with you guys and JustFab in the early days just fab yeah well there's a lot of like they copied us we copied them we were friends and then now we hate each other like what's the story the story is basically we started um ShoeDazzle and about three months into starting it we got a call uh from Adam Gold Goldenberg saying that he wa... Read More

Key Insights

• ❓ JustFab approached ShoeDazzle for a possible acquisition, but ShoeDazzle declined.
• 😠 ShoeDazzle felt annoyed when JustFab launched with a similar model, but they later realized the importance of competition for growth.
• 💪 ShoeDazzle believes they excel in creativity and innovation, while JustFab has a strong marketing strategy.
• 💨 ShoeDazzle moved away from the subscription model due to economic reasons, while JustFab continued to find success with it.
• 🫠 Facebook's ad platform played a significant role in ShoeDazzle's rapid growth in the early days.
• 🇨🇷 The increasing advertising costs and manufacturing costs in China affected ShoeDazzle's profitability and decision-making.
• 💱 ShoeDazzle eventually brought in an outside CEO to navigate their challenges and changes in the industry.

Questions & Answers

Q: What happened between ShoeDazzle and JustFab in the early days?

JustFab approached ShoeDazzle to buy them out, but ShoeDazzle declined and decided to stay independent. They left on good terms initially.

Q: Did it bother ShoeDazzle when JustFab launched with a similar model?

Yes, initially it bothered ShoeDazzle as the models were exactly the same. However, they eventually realized that competition pushes them to work harder and respect JustFab as competitors.

Q: How does ShoeDazzle believe they match up against JustFab?

ShoeDazzle believes they have an edge in creativity and innovation. They also focus on branding with an elevated level, while JustFab has a strong marketing engine.

Q: Why did ShoeDazzle move away from the subscription model?

ShoeDazzle found that the subscription model at their price point did not make economic sense. They were unprofitable and faced increasing costs in advertising and manufacturing.

Summary & Key Takeaways

• ShoeDazzle started as an independent company and received an offer from JustFab to buy them out, but they declined and continued to build their brand.

• JustFab then launched with a similar model, which initially annoyed ShoeDazzle but eventually pushed them to work harder and grow faster.

• ShoeDazzle believes they excel in creativity and innovation, while JustFab has a strong marketing engine.

• ShoeDazzle decided to move away from the subscription model due to economic reasons, while JustFab found success with it.