Transcript via SND.TV:
Fab.com launched two years ago and now the founders of the social shopping site are hoping to transition the platform away from flash sales dependency.
In 2012 Fab.com grew from a modest inventory of 2,000 products to a robust platform that now hosts 15,000 products from more than 10,000 designers.
Despite its rapid growth CEO Jason Goldberg says the company still receives 40 percent of its revenue from flash sales. Those sales involve offering deep discounts for overstocked items.
Fab.com engineers recently improved the websites search and browse functions. The improvements have allowed Fab to receive more revenue from what it calls “first-run merchandise at everyday good prices.”
Transitioning away from flash sales dependency will allow Fab to more robustly compete against its emeerging flash sales competitors such as Ideeli and even Groupon’s new quick sales platform.
By focusing on everyday low prices Fab.com could position itself as a direct brand instead of a simple flash sales website.
Fab says it will now focus on its own collections, collaborations with designers, furniture, home goods, clothing items, and other top sellign categories.
According to Fab’s founders the social shopping platform will focus on “colorful, modern, fun, functional products across all categories and price points.”
The company is working on a “five year plan” that it hopes will make its brand “synonymous with design” through top notch products and not a reliance on outside brands.
Fab.com currently services more than 12 million registered users and recently launched in France. According to the company 40 percent of its sales were outside the US in April.
With its recent acquisition of MassiveKonzept the company is already putting its plans into action by allowing shoppers to customize bookcases and other home items as they see fit.
With SocialNewsDaily I’m James Johnson
Do you think Fab.com has what it takes to become a major brand name for its very own products?