Business Model of FashionNova
- TARGET MARKET & PRICING STRATEGY
- PRODUCTS & STYLES
- E-COMMERCE MODEL
- UNIQUE MARKETING STRATEGY
- ULTRAFAST FASHION MODEL
FashionNova has used the power of internet marketing and celebrity endorsements to gain fast recognition and create appeal among 'millenial' shoppers. Social media sites and mainly Instagram has played a central role in helping FashionNova gain as much success and limelight. However, there are other factors too behind its growth and success apart from a successful marketing strategy. Its pricing, e-commerce model and efficient supply chain have helped the fashion brand find fast and profitable growth.
FashionNova sells mainly over the internet. However, it also has five physical stores that are located in Southern California. Fashion Nova’s business model is different from that of ZARA, another successful fast fashion brand. Instead of a large brick and mortar chain like ZARA, it has relied mainly on e-commerce. However, according to the founder, FashionNova is ultra-fast in terms of fashion. It releases almost a thousand fresh items every week. Based on the information company founder has shared with the media, Fashion Nova has managed its supply chain well and churns fashion at higher velocity.
Target Market and pricing strategy:
The target market of FashionNova is mainly millenial customer segment. In every way, it is trying to target the taste and preferences of millenial generation. The website was ranked no 6 as one of the most favourite website of young people. Millenials are a net savvy generation that loves shopping online. It wants good fashion at affordable prices. FashionNova sells styles made for the youth. The bodycon dresses made popular by Kim Kardashian are among core attractions of the brand. Young people want to dress and look like celebrities. They want to be popular on social media networks. FashionNova has exploited these trends and the new generation’s preferences well.
Young people are the largest market segment for fashion brands in the United States. However, to become their favourite requires knowing their taste, their buying habits and an understanding of the most current trends. FashionNova has brought a large range of attractive dresses and accessories at attractive prices. Most of the products it sells, lie in the price range of 20 to 50 dollars. While there are some costly pieces also, the larger part of its product range is priced in the above range. However, it is not just the prices or the quality of the products, there are more factors driving the popularity and sales of FashionNova. Its marketing and sales strategy as well as the overall customer experience are also key reasons that FashionNova found popularity and fast growth. The brand has become an internet sensation and teens’ favourite for its ability to cater to their taste and preferences. Everybody wants to dress like Kim Kardashian and Kylie Jenner. Fashion Nova tracks these trends and responds fast to demand signals. Once they spot a signal, there is nothing to stop them. It knows what outfit its customers want next day or week and where they will look for it. If there is something trending in an award show, it will not take FashionNova long to start working on the design. The focus is not on price but what the customers want and on quality of items. To become a hit, you must first have a very good understanding of your target market, what attracts it and how to reach it. The internet is currently the best channel to reach the youth. They are online for a large part of the day spending their time on Facebook, Amazon, Netflix and other sites. Behind FashionNova’s internet business is a strong supply chain as well. However, unlike ZARA (another popular fast fashion brand with a large chain of stores in several countries worldwide), it sells mainly through its website.
FashionNova is always looking for bold and daring styles. On its ‘About Us’ page, FashionNova claims, it is made for adventurous, inspirational and badass girls. Core customer segment of FashionNova are the modern girls. However, the company has also brought a large range of products for men and an exclusive ‘Plus Size’ range –FashionNovaCurve. Another important thing about its business model is its customer centric design. The customer is the star at FashionNova and the Nova Girl, as it calls its customers is always the best dressed person inside the room. There is always something special available at FashionNova for every special occasion from dresses for a night out, a cute outfit for running errands or a classic for a classy evening with your friends. The company strives to provide awesome service, unbeatable prices and the hottest trends. FashionNova has brought a range that suits the lifestyle of the modern girls.
Products and styles:
FashionNova offers a very large product range for girls. The plus range and menswear are relatively new additions to the FashionNova range. Its large range and variety of styles are a key attraction and customers always have more choices than they want. However, style and quality both are important. There is a very large range of trending and special items on offer all the time. The brand offers a large range of Jeans from high waste to Mid waist, skinny and bootcut. Apart from them, girls get to choose from a large range of dresses including gowns, bodycon dresses for each special occasion. The range of tops and bottoms as well as variety is quite impressive at FashionNova. No doubt you can find many styles suiting your choice on its website. To cater to the athleisure trends, there is a large range of activewear. A large range of accessories to match your dresses and suit the occasion is also available ranging from jewellery to handbags, sunglasses as well as hair accessories. Overall, FashionNova has more than enough to cater to the diverse choices of the millenial generation.
FashionNova has total five stores, all of them in California. The brand offers easy shipment options for its customers. There are several advantages of selling online apart from being accessible to a very large customer base. You do not need to spend much on the physical infrastructure. Apart from the warehousing costs, you do not incur other significant maintenance and personnel expenses which otherwise arise from a large chain of stores in the U.S. and Canada. Since the success of Amazon, Internet has become a credible sales channel. Marketing and sales strategy used by FashionNova as well as its pricing strategy have helped it build trust which is key to retaining young customers.
In the era of the internet, things are happening at a much faster pace. Trends change fast and a style that is popular today, could should grow outdated. Internet can speed things up and apart from helping you build faster recognition, it can be a great sales channel from where you can easily reach millions. Free domestic shipping at FashionNova takes 1-3 days generally. If you are in a hurry, there are other options too and you can get your items delivered quicker with a small payment ranging between 7 and 20 dollars. For the Canadian and UK based customers too, there are attractive shipping options that deliver the items in 5-10 business days. Customers in UK or Canada can avail of free or standard delivery options. The company offers USPS mail to most locations. Easy return options also make it easy for the customers to shop from FashionNova.
FashionNova while using an ecommerce model has still maintained impressive presence in key markets. Customers can find help online easily if they need. According to sources, inspired by its initial success, the company is also trying to expand overseas into more markets. The company is based in the heart of Los Angeles and has five stores in Southern California. However, that is its entire physical presence and apart from that the business empire of FashionNova is extended on the internet. The website came much later than the opening of the first store by Richard Saghian in 2006. The website came in 2013 and Saghian had used Instagram right since then to promote his brand and product range.
Unique Marketing Strategy:
Marketing has also played a critical role in ensuring the growth of FashionNova which has risen fast to become the millenial customers’ most favorite shopping destination in US and particularly the girls. However, instead of going the regular way the company used a unique strategy that proved to be highly effective. Every millenial aspires to dress like his/her favorite star. FashionNova has exploited this specific weakness of the customers skillfully by using influencers and celebrity endorsements. FashionNova has exploited the power of celebrity marketing and social media very well. Instead of spending on brand promotions and advertisement, it found out a more direct method of connecting with the customers. A celebrity’s picture in your brand’s dress can be much more effective at drawing customers than the regular promotions or advertising. Cardi B and Kylie Jenner are among the leading influencers who promote FashionNova clothing on Instagram. Except Kylie Jenner, most of the influencers receive free clothing for their promotions. Kylie Jenner however gets paid. It is also because one of the posts by her on Instagram can drive sales upwards of $50,000. As per Saghian, the founder, a post on her page is better than a SuperBowl ad. The Instagram strategy has worked and the brand itself has more than 14.7 million followers. Its new styles are posted regularly on Insta. Rapper Cardi B has also been promoting FashionNova since the brand’s initial days. Her personal appeal and style work to drive her followers.
The millenials want to look stylish but they also want their fashion affordable. Each one of them likes being that fashion super star and to follow them, the best way is to connect with their favourite stars who will help you find millions of them in a single place. Each celebrity account on Instagram has millions of passionate teen followers. While FashionNova knows the weak spot of the young customers, it is the extra touch of glamour that influencers like Kylie Jenner and Cardi B have added which has turned the brand into a sensation.
NovaBabe Marketing Campaign
FashionNova also uses marketing campaigns and contests for generating higher recognition and brand loyalty. The company ran an Instagram contest in 2018 titled NovaBabes 2018 Experience. Fans were asked to tag their posts with @FashionNova and #NovaBabe. The campaign was successful at generating publicity and recognition for FashionNova. It selected ten winners from the campaign. These ten winners were flown out to Los Angeles to spend an elite weekend. The winners spent a weekend full of modelling behaviour - living in five star hotels, having five star meals, club visits, super glamorous makeovers and photoshoots in Hollywood Hills. The NovaBabe Experience was hifi and glamorous weekend for contest winners.
Ultrafast fashion model:
Fashion changes fast at FashionNova and the company’s ultra-fast fashion model has been successful at attracting customers in very large numbers. The founder calls it ultra-fast fashion because every week the brand releases around 1000 new items. However, to achieve this target the brand does something that most rivals do not. It works with a large number of suppliers, several of which are based locally in Los Angeles. This allows the brand to introduce new items and track the changing trends faster. It is why there is always something new and hot on the shelves for the customers. FashionNova has been able to strike the kind of connection most brands strive to with their customers. When it comes to attracting millenials, you must have the ability to spot trends and if possible remain ahead of them as well as everyone else.