Further reading: the United States flash purchase site Gilt will open the first physical store
Fab CEO Jason · Paul
lead: U.S. media published an article today that America’s creative flash sales site Fab valuation two years after its launch has exceeded $1 billion. Fab has a unique culture, and closely control the business around the world, which also makes the company experienced the pains of growth.
below is the full text of the article:
with exclusive design of household items, works of art and jewelry, Fab has become the darling of the entrepreneurial community in New York. So far, the company has conducted 5 acquisitions, the number of employees increased to 650 people, and spent tens of millions of dollars in marketing. Over the past year, Fab lost or fired at least 11 executives, while revenue is less than the previous target set by nearly 20%.
investors have invested more than $310 million to Fab. In return for investors, Fab CEO Jason · (Goldberg) needs to prove that he will drive Fab’s international expansion, and to develop new business, such as Fab’s own brand of products Jason. At the same time, Goldberg and co-founder of Fab · in Bradford; Sher Hamm (Bradford Shellhammer) is taking a unique management style. For example, they may have fired someone within the company e-mail threats, or prohibit employees will coat over the back of the chair.
Goldberg said: "at this pace of development of Fab, we can not make mistakes. Hopefully we have the ability to make adjustments and change effectively. We want to be a learning organization."
, according to an internal e-mail received by the U.S. media, in 2012, Fab’s global revenues of $113 million, down from $140 million previously expected by Goldberg. He admitted that he had sent such a message, and said Fab’s 2012 revenue eventually revised to $115 million. This year, Fab’s revenue target of $200 million to $300 million.
huge marketing costs
Goldberg had previously created Socialmedian and other companies, he hopes to develop Fab and Amazon and IKEA have a similar influence of the company. This means that Fab needs to spend a lot of marketing costs, as well as put on TV advertising. For a start-up company for second years, this practice is rare.
in order to highlight the novelty, a sense of design brand image, Fab spent $40 million last year for marketing, accounting for the company’s revenue of 35%. But he said Fab has a better understanding of how to effectively target the audience, so this year’s marketing budget will fall to less than $30 million.
Fab focuses on products that can trigger consumer interest, and these products