While reading and researching the company JackThreads, I became very motivated to be more ambitious and determined. JackThreads is basically a success story of a college student with a passion for clothing and affordable prices. And while these are two very common interests that appeals to almost everyone, Jason Ross followed his dream and brought his innovative idea of developing a bootstrapped, online community, which brings affordable, top designer street clothing, to life. Creating this blog was very enjoyable to me not only because I developed a new interest in e-commerce and different strategies companies use to attract customers, but also because it inspired me to become more ambitious in the e-commerce world and to look for that potential of success.
JackThreads
The members-only online contemporary shopping club for men
The JackThreads Pop-Up Truck
On February 17, 2012 , Thrillist.com gave their customers a chance to try on JackThreads clothing offers by setting up a Pop-Up truck on Union Square. Inside the plain shipping container was an attractive array of different clothing brands such as WeSC, GoodWood, and Timex. This event created more customers to the site as well as interest from onlookers and different blogs. Below are some pictures from the Pop-Up Shop:
Links:
http://ny.racked.com/archives/2012/02/17/jackthreads_popup.php
JackThreads & Thrillist
Thrillist acquired JackThreads in May 2010. To attract customers, Thrillist offers its subscribers access to JackThread’s shopping community upon subscription. The joining of Thrillist and JackThreads was a win-win for both companies. Thrillist saw it as a good benefit for its subscribers as well as a way to make revenue. JackThreads acquired a large number of members from Thrillist and saw exponential growth in members and revenue. Since the acquisition, JackThreads’ membership has jumped from 150,000 in June 2010 to over 1.7 million members as of February 2012.¹
An example of how Thrillist and JackThreads uses social media to bring in new customers is their use of Facebook.com. JackThreads has over 100k likes on Facebook and on their page they have regular polls, asking shoppers, “Would you rock it?”. On Thrillist’s facebook page, the company would engage with their readers on various discussions such as talks on which food they like better, or asking them to weigh in on funny pictures.³ These strategies create a more welcoming and personal environment for the companies’ members. People are able to find others with similar interests and humor and that will keep them coming back for more.
Sources:
¹http://www.inc.com/30under30/2011/profile-jason-ross-founder-jackthreads.html
²http://www.businessinsider.com/jackthreads-2011-2/
³http://socialtimes.com/how-thrillist-jackthreads-use-facebook-oink-and-pinterest_b89226
JackThreads Android App
Want to keep up with all of JackThread’s deals but don’t have access to a computer? That is where JackThread’s Android App comes in handy. JackThread uses this app to keep their consumers updated on the daily deals they offer. Customers don’t have to constantly check their inbox, as this app uses push notifications and will just notify when a new deal is posted. Also users would be able to purchase deals straight through their smart phone. This app currently has a rating of 3.4 through 161 reviews and is regularly updated. Latest version is v1.2.4, updated March 8, 2012.
Links:
https://play.google.com/store/apps/details?id=org.fueledinc.jackthreads.android
5-8 Key elements of JackThread’s business model
5-8 Key elements to JackThread’s business model:
5. Competitive Advantage
JackThreads were one of the first successful online discount retailer established and has quickly developed a name for themselves. While there is a large market for women shopping online, Jason Ross saw the opportunity to be one of the first to bring an exclusive street fashion club to the male market. Ross first established relationships with the brands he wanted to sell through trade shows and one on one meetings. Through these relationships, JackThreads is able to offer discounts from 40% – 80% off the original price from top tier brand names. These are exclusive deals where customers can only find at JackThreads.com.
6. Market Strategy
When Jason Ross first launched JackThreads, he and his team went out and got their name known to online blogs, newsletters, and websites who are writing about the brands JackThreads are selling. They made it a priority for people to know that they are selling these brands at prices better than anywhere on the web. They also gave out codes which allowed people to “skip the waiting line” and instantly become a member. This proved to be very successful as JackThreads grew from 0 to 35,000 members in the first year alone, without spending any money on marketing.²
Now when the name JackThreads is mentioned, discounted top-tier mens urban fashion brands, usually comes to mind. Also, with the “members-only” name, customers receive an aura of exclusivity, that they earned the privilege of finding discounts on these designer brands. This was one strategy Ross designed to bring more customers to his website. For example, when you visit JackThread.com, you are presented with an long email sign up form. Essentially, this was a form to sign up for the email newsletter. But what Ross did was he made the whole community as members-only and made this form seem like an application to be accepted into the club. This makes the viewer seem more special and more excited to sign up. JackThreads also requires a 24 to 48 hour waitlist for new customers to become members. This makes it appear that they care about whose being accepted and whose not.
7. Organizational Development
JackThreads contains a small team which includes different important roles such as, life-cycle manager, web site developer, human resources, lead android developer, and CRM marketing manager.
8. Management Team
For the first two and half years of developing JackThreads, Jason Ross worked alone. The day he launched, the website wasn’t accepting any credit card payments. That was when he hired colleague of his to help develop the website. Ross mentions that as the website grew, needs in different areas arose and that was when he would hire another specialist. While he says this may not be the best idea, because at times he would not take the time to perform an appropriate background check and it wouldn’t be a strong fit, he mentions that it is good to hire slowly to ensure you get the right people on board. Ross emphasizes the importance of a good team, one he has now for JackThreads. ³
Sources:
¹http://www.jackthreads.com/faq
Things to do
- Finish describing the company’s business model
- Update interesting stories about JackThreads
- Find more statistics on the company and its competitors
- Discuss the growth of JackThreads from their starting date to now
1-4 Key elements of JackThread’s business model
1-4 Key elements to JackThread’s business model:
1.Value Proposition
JackThreads presents their members with top-tier contemporary brands and fashion at a discounted price which customers would not be able to find anywhere else. These deals are updated daily and the clothing and accessories are usually up 50% to 80% off the original price. Aiming at a younger, urban male demographic, JackThreads offers deals on streetwear brands that people would not be able to find at most retailer stores. Therefore, once signed up, a member would not only be given these daily deals, but also learn about contemporary brands which are not sold in the major retailing chains.
2. Revenue Model
JackThreads has a sales revenue model. By bringing discounted prices of men fashion brands to their members, the clothing lines pay JackThreads to commercialize their products and JackThreads earn a percentage for each sale.
3. Market Opportunity
JackThreads is one of the only online spaces to find off-prices of contemporary male fashion brands (brands which emphasize their reputation and image). Because of this and because of the daily deals JackThreads offers, the market for these products is very large. Usually the deals sell out throughout the day and when a highly anticipated deal comes out, certain items sell out within a matter of hours.
4. Competitive Environment
JackThreads primary competitors are other fashion discount sites. These sites include:
PLNDR.com – established as the daily deal site for the urban fashion web retailer, KarmaLoop.com. PLNDR.com emails their members when a daily deal is offered and the brand is posted for 3 days. Like JackThreads, the site is members only and offers deals up to 80% for male and female streetwear. link: http://www.plndr.com/
shoplikekings.com – founded in 2010, shoplikekings is an up and coming online male streetwear, discount retailer. They emphasize their strong relationship with many of the top fashion labels and their deals last 48 – 72 hours. link: http://www.shoplikekings.com/
Gilt.com – Gilt MAN was founded in 2009 and is the men-only sale site for the luxury online boutique Gilt Groupe. Gilt offers their members deals of today’s top designer brands. While there is a men section to the main site, Gilt MAN goes beyond the fashion offered there and brings their customers deals to athletic wear, watches, and male gadgets. link: http://www.gilt.com/sale/men
Along with these discount sites, JackThread’s competitors include the websites to the streetwear brands themselves and the large retailer stores.
Sources:
http://www.jackthreads.com/about
http://mixergy.com/jason-ross-jackthreads-interview/
The Best Money I Ever Spent
In order for Jason Ross to start his dream, he had to find a way to make contacts with his target fashion brands. One way he found to build relationship was to go to a popular New York trade show. But only problem is is that the ticket for these shows costed $1000 and being a poor college student, Ross was finding any way to save money. But Ross took the risk and paid for the ticket and from there he began making invaluable contacts which would later help make his dream business succeed.
Read more: http://www.inc.com/articles/201109/jason-ross-jackthreads-best-money-ever-spent.html
JackThreads 