The CFDA hosted an intimate panel discussion on the trend of membership-based online brands at the Rachel Zoe headquarters in Los Angeles last Wednesday. Speakers included Rodger Berman, Co-CEO of Rachel Zoe, Katie Rosen Kitchens, Co-Founder and Editor in Chief of FabFitFun, Kendra Gratteri, Head of Style at FabFitFun, and Shawn Gold, of TechStyle Fashion Group’s Corporate Marketing Office. The conversation was moderated by WWD’s West Coast Bureau Chief Marcy Medina.
Brands such as FabFitFun, Box of Style and TechStyle offer a subscription or flexible membership providing members with specially-curated apparel, accessories and lifestyle products customized via data science. Once a member completes a survey about buying habits, size, personality, interests and brands, predictive analytics are used to select products best suited for them. But it isn’t all science. Brands “balance data science with human touch,” said FabFitFun’s Rosen Kitchen. “A consumer insights team works directly with members to learn more about who they are, what brands they like, what trends they are into.” This is how FabFitFun stays connected to its members.
Key is that members are getting more than just the products they like. “They want brands they know and they also want the element of discovery, new LA brands mixed with La Mer products,” Rachel Zoe’s Berman noted.
This new form of retail operates similarly to traditional brick-and-mortar stores.
As TechStyle’s Gold put it, “It’s like walking into Neiman Marcus and instead of a sales associate asking you about your style, the website is able to offer you that service.”
Membership brands’ operating structure is comparable to department stores with delivery dates, terms, minimums and a merchandising team, even though they are able to engage with a different consumer base. They also help brands adjust to advances in technology.
“We’re like a designer focused incubator, teaching designers about fit technology, consumer insights and how they can use data to leverage their brand” said FabFitFun’s Gratteri, adding that membership-based online brands can also help educate designers and brands on how to be more inclusive.
The evening concluded with a cocktail reception on the rooftop of Rachel Zoe’s headquarters, where guests enjoyed One Hope Wine before taking home home a box of their own from FabFitFun and Box of Style.
