ModCloth

Last updated
ModCloth
Company type Subsidiary
Industry Retail, Apparel, e-commerce
Founded2002 in Pittsburgh, Pennsylvania
FoundersEric Koger
Susan Gregg-Koger
Headquarters Los Angeles, California, United States
Products Clothing, accessories, decor
Revenue$150 million+ (2014) [1]
OwnerNogin, Inc.
Number of employees
350+ [2]
Parent Nogin, Inc.
Website modcloth.com

ModCloth is an American online retailer of indie and vintage-inspired women's clothing based in Los Angeles. [3]

Contents

History

Modcloth was founded in 2002 by Susan Gregg Koger and Eric Koger. Susan and Eric were students at Carnegie Mellon University and launched ModCloth as a website to sell used vintage dresses. [4] ModCloth grossed $18,000 in revenue in 2005 and received its first round of seed funding in 2008. [5] In 2009, ModCloth reported $15 million in revenue, [6] allowing it to relocate its headquarters from Pittsburgh's Strip District to San Francisco. [7] ModCloth reported $100 million in revenue in 2012 [8] and $150 million in 2014. [1]

In January 2015, ModCloth announced the appointment of Matthew A. Kaness as CEO replacing Eric Koger. [9] Kaness had previously held the role of CSO at Urban Outfitters, Inc. Under Kaness's leadership, ModCloth launched its first namesake label as part of monthly collections in August 2015. [10] The company quickly became a multichannel retailer when it opened its first pop-up Fit Shop in Los Angeles, followed by another in San Francisco. [11] ModCloth pop-up shops carried a curated collection of ModCloth clothing, accessories, and home décor, along with select pieces from local artists. [12] ModCloth used these pop-up stores to promote existing online and social media services such as Fit for Me and the Style Gallery. [13]

ModCloth opened pop-up stores in other cities as part of the 2016 "ModCloth IRL Tour", [14] including Washington, D.C.; Portland; Austin; Denver; and Pittsburgh. [15] Following these temporary store experiments, [16] ModCloth opened its first permanent FitShop in Austin in November 2016. All IRL shops have since closed. [17] [18]

In March 2017, ModCloth was acquired by Jet.com, a subsidiary of Walmart. [19] Jet.com noted ModCloth would run independently, similar to the arrangement in place for other companies they had acquired in the past. [20] Both the website and the retail store in Austin would be retained by ModCloth. [21] The partnership would give ModCloth more working capital, [20] the ability to open more physical stores, [22] and the opportunity to grow the business to reach more consumers. [23] Though the financial terms of the acquisition were not disclosed, the deal was estimated to be between $51 million and $75 million. [24]

In October 2019, Walmart sold ModCloth to brand investment platform Go Global Retail, in a year when Walmart was facing projected losses of $1 billion in its e-commerce division. [25] [26] [27]

In May 2021, Nogin acquired Modcloth from Go Global Retail for an undisclosed sum. [28] In December 2023, Nogin filed for Chapter 11 bankruptcy. [29] As of April 3, 2024, Nogin has announced their confirmation of a restructuring plan for their chapter 11 bankruptcy in which "reorganized equity interests will be acquired by a newly-formed entity sponsored by B. Riley Financial, Inc. [30]

Stance on body image

Truth in Advertising Act endorsement

In 2014, ModCloth became the first retailer to sign the Heroes Pledge for Advertisers. [31] As an endorser, ModCloth committed to not using Photoshop to "change the shape, size, proportion, colour, and/or remove/enhance the physical features" of its advertising models in post-production. [32] In June 2016, ModCloth hosted an event on Capitol Hill to support the Truth in Advertising Act. Modcloth's Susan Gregg Koger spoke at this event alongside Representative Ileana Ros-Lehtinen, [33] who was one of the introducers of the act. [34]

Real people as models

In 2015, ModCloth began using staff members as models for its swimwear advertising campaigns. [35] [36] [37] ModCloth's swimsuit campaign launched in response to research that correlated low self-esteem for women with exposure to thin models. [38]

Plus-size rebranding

In 2015, ModCloth removed the plus-size term from its site. [39] The company's decision was supported by a ModCloth survey, which concluded that almost two-thirds of women were embarrassed to shop in a separate section for plus-labelled clothing. [40] The plus-size clothing was integrated into the greater site and made shoppable through size filters. [41]

Crowdsourcing initiatives

ModCloth has developed several crowdsourcing initiatives that have impacted its product line. [42]

Style Gallery is a user-generated image gallery where customers send photos of themselves modelling in a purchased ModCloth garment. [43] These photos are then featured on the ModCloth blog, allowing visitors to see how a certain clothing item looks when worn by a real customer rather than a professional model. [44]

Fit for Me

Fit for Me is a feature on the ModCloth app, which allows users to see suggestions for clothing that will fit their exact body shape based on other user reviews. [45] Users input their own body measurements when they leave a review for a previously purchased product. Fit for Me uses this data to generate specific clothing recommendations depending on the user's measurements. [46] [47]

Be The Buyer

In 2009, ModCloth ran the Be the Buyer program, which allowed users to decide which clothing designs would be produced and sold by ModCloth. [48] Users voted on clothing samples via a virtual tradeshow. If a certain product received a large enough quantity of votes, it would be pushed to production and available for purchase on ModCloth's website. [49] Using this model, ModCloth became the first retailer to supplement an existing business model with crowdsourcing efforts. [50]

Make the Cut

ModCloth ran the Make the Cut contest in 2012, where ModCloth created products based on consumer ideas. [51] Customers were invited to submit clothing sketches, which were voted on by other users. The contest winners had their sketches adapted into real clothing for the spring line, with each Make the Cut garment product featuring the artist's name printed on the label. [52]

Deva Pardue design

ModCloth received negative press for using a design by artist Deva Pardue without permission or credit. [53] [54] [55]

Philanthropy

On March 5th, 2012, ModCloth announced a donation of "just over 500" dresses to The Princess Project. [56] The project was created to provide free prom dresses and accessories to high school girls who cannot otherwise afford them. [57] For every dress purchased from its Fancy Frocks collection that day, ModCloth said it would donate a dress to the nonprofit. [58] [59] Several of their employees also volunteered at the dress giveaway days. [56]

In 2015, ModCloth began a partnership with Schoola [60] to raise money for Malala Yousafzai's Malala Fund, which advocates and supports education for young girls. [61] ModCloth participated in the cause by donating clothing, which Schoola sold for a discount. The proceeds were then donated to the Malala Fund. [62]

Related Research Articles

E-commerce refers to commercial activities including the electronic buying or selling products and services which are conducted on online platforms or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. E-commerce is the largest sector of the electronics industry and is in turn driven by the technological advances of the semiconductor industry.

<span class="mw-page-title-main">Walmart</span> American multinational retail corporation operating department stores

Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores in the United States and 23 other countries. It is headquartered in Bentonville, Arkansas. The company was founded in 1962 by brothers Sam and James "Bud" Walton in nearby Rogers, Arkansas. It also owns and operates Sam's Club retail warehouses.

<span class="mw-page-title-main">Black Friday (shopping)</span> Friday following Thanksgiving in the US

Black Friday is the Friday after Thanksgiving in the United States. It traditionally marks the start of the Christmas shopping season and is the busiest shopping day of the year in the United States. Many stores offer highly promoted sales at heavily discounted prices and often open early, sometimes as early as midnight or even on Thanksgiving. Some stores' sales continue to Monday or for a week.

Lane Bryant Inc. is an American women's apparel and intimates specialty retailer focusing on plus-size clothing. The company began in 1904 with maternity designs created by Lena Himmelstein Bryant Malsin. Lane Bryant, Inc., is the largest plus-size retailer in the United States. As of 2022, the chain consists of 448 stores in 46 U.S. states. Lane Bryant, Inc. is not affiliated with Lane Bryant catalog, which was spun off as a separate business in 1993.

<span class="mw-page-title-main">Zara (retailer)</span> Spanish multinational fast-fashion company

Zara is a fashion retail subsidiary of the Spanish multinational fashion design, manufacturing, and retailing group Inditex. Zara sells clothing, accessories, beauty products and perfumes. The head office is located at Arteixo in the province of A Coruña, Galicia. In 2020 alone, it launched over twenty new product lines.

<span class="mw-page-title-main">Online shopping</span> Form of electronic commerce

Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a shopping search engine, which displays the same product's availability and pricing at different e-retailers. As of 2020, customers can shop online using a range of different computers and devices, including desktop computers, laptops, tablet computers and smartphones.

<span class="mw-page-title-main">Gunne Sax</span> Retired clothing label from Jessica McClintock

Gunne Sax is a retired clothing label owned by Jessica McClintock, Inc., which specialized in formal and semi-formal wear for young women. Eleanor Bailey and Carol Miller co-founded the label in San Francisco in 1967, before partnering with Jessica McClintock in 1969 for a $5,000 investment.

Plus-size clothing is clothing proportioned specifically for people above the average clothing size. The application of the term varies from country to country, and according to which industry the person is involved in.

Justice is a clothing brand sold exclusively through Walmart targeting the tween girl market. In 2020, it became a brand owned by the private equity firm Bluestar Alliance.

<span class="mw-page-title-main">Chico's FAS</span> American retail company

Chico's FAS, Inc. is an American women's clothing and accessories retailer founded in 1983 on Sanibel Island, Florida. Founded by Marvin and Helene Gralnick, it is headquartered in Fort Myers, Florida and operates four brands: its namesake Chico's store, White House Black Market, Soma and TellTale.

Hayneedle was an online retail company based in Omaha, Nebraska with a focus on furnishings and decor. In 2016, Hayneedle was acquired by Jet.com, which later became a subsidiary of Walmart.

India has an Internet user base of about 690.0 million as of November 2023, about 40% of the population. Despite being the second-largest user base in world, only behind China, the penetration of e-commerce is low compared to markets like the United States, or France, but is growing, adding around 6 million new entrants every month. The industry consensus is that growth is at an inflection point.

Weardrobe is an online street fashion community for both novice and established bloggers that allows members to share their outfits and comment on others' photographs.

<span class="mw-page-title-main">Omnichannel retail strategy</span> Business model by which a company integrates both offline and online presences

Omnichannel retail strategy, originally also known in the U.K. as bricks and clicks, is a business model by which a company integrates both offline (bricks) and online (clicks) presences, sometimes with the third extra flips.

<span class="mw-page-title-main">Bonobos (apparel)</span> American apparel company

Bonobos is an upscale e-commerce-driven apparel company that designs and sells menswear including men's suits, trousers, denim, shirts, shorts, swimwear, outerwear, and accessories. The company was founded by Stanford Business School students Andy Dunn and Brian Spaly, and launched as an online retailer in 2007.

<span class="mw-page-title-main">Dolls Kill</span> American online fashion retailer

Dolls Kill is a global online fashion brand. The company was named the "Fastest Growing Retailer" in 2014 by Inc. magazine, which also included Dolls Kill as one of the "top companies in San Francisco". Dolls Kill operates a retail website that sells clothing, shoes and accessories and features six collections showcased by "Dolls", models that embody character personas for each collection's style. Dolls Kill is known for featuring kawaii, punk, goth, streetwear and festival fashions. Since 2018 it has also licensed and operated the 1990s brand Delia's as a sub-label.

<span class="mw-page-title-main">Jet.com</span> American e-commerce company

Jet.com was an American e-commerce company headquartered in Hoboken, New Jersey. The company was co-founded in 2014 by Marc Lore, along with Mike Hanrahan and Nate Faust. Jet.com raised $820 million over four venture rounds from GV, Goldman Sachs, Bain Capital Ventures, Accel Partners, Alibaba Group, and Fidelity. The website was formally launched in July 2015. In September 2016, it became a subsidiary of Walmart.

<span class="mw-page-title-main">Retail apocalypse</span> Widespread decline in physical retail stores

Retail apocalypse refers to the closing of numerous brick-and-mortar retail stores, especially those of large chains, beginning around 2010 and accelerating due to the mandatory closures during the COVID-19 pandemic.

References

  1. 1 2 "ModCloth Plans Huge Expansions Under New CEO". Bloomberg. August 31, 2015. Retrieved May 27, 2016.
  2. ↑ "ModCloth goes from clicks to bricks with S.F. pop-up". SF Gate. July 29, 2015. Retrieved 2019-10-26.
  3. ↑ "About Us". ModCloth. Retrieved May 27, 2016.
  4. ↑ "How ModCloth Went From a College Dorm to $100 Million a Year". Mashable.com. Aug 13, 2013. Retrieved 2019-10-26.
  5. ↑ "Susan and Eric Koger: Modcloth". New Venturist. Retrieved May 27, 2016.
  6. ↑ "ModCloth, Now With Over $100 Million In Annual Revenue, Is Going Mobile First". Tech Crunch. July 19, 2013. Retrieved 2019-10-26.
  7. ↑ "Retailer ModCloth credits Pittsburgh team for company growth". Pittsburgh Post Gazette. August 8, 2013. Retrieved 2019-10-26.
  8. ↑ "ModCloth's 2012 ends shipping 1.2m orders, now with 1,200 featured designers, holiday requests up 52%". TheNextWeb.com. Jan 8, 2013. Retrieved May 27, 2016.
  9. ↑ Lockwood, Lisa (2015-01-12). "Matthew Kaness Named CEO of ModCloth". WWD. Retrieved 2023-06-18.
  10. ↑ Alison (2015-07-31). "AVAILABLE NOW: Modcloth's first namesake clothing line". NYC Recessionista. Retrieved 2023-06-18.
  11. ↑ Bilis, Madeline (4 August 2015). "Online retailer ModCloth models new brick-and-mortar concept near Union Square". San Francisco Business Times. Retrieved May 27, 2016.
  12. ↑ "Wildly popular online shop pops up in Austin's trendiest district — for a limited time". Culture Map. Retrieved May 27, 2016.
  13. ↑ McCarthy, Allison (22 October 2015). "ModCloth's first brick-and-mortar a good fit in S.F." San Francisco Chronicle. Retrieved 12 July 2016.
  14. ↑ "ModCloth IRL Tour". ModCloth. Retrieved May 27, 2016.
  15. ↑ "ModCloth Names New Chief Technology Officer". Apparel News. Retrieved May 27, 2016.
  16. ↑ "Online retailer ModCloth models new brick-and-mortar concept near Union Square". San Francisco Business Times. Retrieved May 27, 2016.
  17. ↑ "Another One Bites the Dust at The Shay". PoPville. 18 October 2019. Retrieved 2020-05-06.
  18. ↑ "ModCloth". www.facebook.com. Retrieved 2020-05-06.
  19. ↑ Hamanaka, Kari. "Nogin: When Tech and Merchants Marry". www.ocbj.com.
  20. 1 2 Fernandez, Chantal (24 March 2017). "Can Jet.com Take a Bite Out of Amazon Fashion?". The Business of Fashion . Retrieved 3 April 2017.
  21. ↑ Hinchilffe, Emma (17 March 2017). "Walmart continues battle against Amazon with acquisition of ModCloth". Mashable . Retrieved 3 April 2017.
  22. ↑ Ankeny, Jason (22 March 2017). "ModCloth CEO: 'Our strategy doesn't change' after Wal-Mart deal". Retail Dive. Retrieved 3 April 2017.
  23. ↑ Edelson, Sharon (20 March 2017). "Wal-Mart's Aggressive Fashion Push Continues With ModCloth Deal". Women's Wear Daily . Retrieved 3 April 2017.
  24. ↑ "Walmart buys online clothing seller ModCloth". USA Today . Associated Press. 18 March 2017. Retrieved 3 April 2017.
  25. ↑ Schiffer, Zoe (4 October 2019). "Walmart sells ModCloth just two years after buying it". The Verge . Retrieved 25 December 2019.
  26. ↑ McDonald, Samantha (4 October 2019). "Walmart Is Selling ModCloth Just Two Years After Acquiring the Brand". Footwear News.
  27. ↑ Thomas, Lauren (4 October 2019). "Walmart to sell online women's apparel brand ModCloth to Go Global Retail". CNBC.
  28. ↑ "Nogin acquires ModCloth from Go Global Retail". Just Style. 2021-05-06. Retrieved 2022-08-04.
  29. ↑ "Nogin Unit Native Brands Files for Ch. 11 Bankruptcy in Delaware". Bloomberg. December 5, 2023. Retrieved December 6, 2023.
  30. ↑ "Nogin Announces Confirmation of Restructuring Plan". Nogin, Inc. 2024-04-03. Retrieved 2024-06-05.
  31. ↑ "ModCloth Is First Retailer To Sign Anti-Photoshop Pledge". Forbes. Retrieved May 27, 2016.
  32. ↑ "ModCloth Signs Pledge to Avoid Retouching Photos of its Models Photoshopped images will get 'Truth in Advertising' labels". AdWeek. Retrieved May 27, 2016.
  33. ↑ "Modcloth goes to D.C. to support the Truth in Advertising Act". Fast Company. 16 June 2016. Retrieved 24 June 2016.
  34. ↑ "Here's the Truth in Advertising Act of 2016". Ad Age. 8 February 2016. Retrieved 24 June 2016.
  35. ↑ Feldman, Jamie (19 February 2015). "Modcloth Goes One Step Further And Puts Its Employees In Swimsuit Photo Shoot". The Huffington Post . Retrieved 24 June 2016.
  36. ↑ Feldman, Jamie (28 April 2016). "Modcloth's Latest Body-Positive Swim Shoot Is Its Best Yet". The Huffington Post . Retrieved 24 June 2016.
  37. ↑ Murray, Rheana (3 May 2016). "ModCloth proves we all have swimsuit bodies with new body-positive campaign". Today . Retrieved 24 June 2016.
  38. ↑ Davies, Anna. "Clothing Brand Uses Ph.D. Candidates as Models". Shape. Archived from the original on 2014-03-16. Retrieved 2019-10-26.
  39. ↑ "#StyleForAll: We're Retiring the "Plus"". ModCloth. Retrieved May 27, 2016.
  40. ↑ "ModCloth Does Away With Its Plus-Size Section". Racked. 6 October 2015. Retrieved May 27, 2016.
  41. ↑ "How to Find Styles That Are Just Your Size". ModCloth. 20 June 2016. Retrieved 24 June 2016.
  42. ↑ "Social Shopping Fuels ModCloth Growth". Chain Store Age. Archived from the original on 2014-02-14. Retrieved 2019-10-26.
  43. ↑ "Style Gallery". ModCloth. Retrieved May 27, 2016.
  44. ↑ "How Modcloth Tries to Be a Fashion Friend and (Amazingly) Succeeds". Contently. September 11, 2013. Retrieved 2019-10-26.
  45. ↑ "Enter Your Measurements on ModCloth and Now You Can Get Personalized Recommendations From Women Just Like You". Glamour.com. 8 November 2013. Retrieved May 27, 2016.
  46. ↑ "ModCloth Launches Fit for Me". WWD. November 4, 2013. Retrieved 2019-10-26.
  47. ↑ "Fit For Me By ModCloth Makes Shopping Online Less Risky". Huffington Post. 2 November 2013. Retrieved May 27, 2016.
  48. ↑ "3 Ecommerce Companies Revolutionizing Buyer Involvement". HubSpot. Retrieved May 27, 2016.
  49. ↑ "Most Innovative Companies 2013". Fast Company. Retrieved May 27, 2016.
  50. ↑ "ModCloth crowdsources vintage fashion". CNET. March 17, 2010. Retrieved 2019-10-26.
  51. ↑ "ModCloth Releases its Second Crowdsourced Dress Collection". SocialTimes. August 20, 2012. Retrieved 2019-10-26.
  52. ↑ "Modcloth: Getting Customers to Design Their Own Clothes". Inc.com. May 3, 2012. Retrieved 2019-10-26.
  53. ↑ Matera, Avery (September 19, 2017). "Walmart Is Under Fire for Allegedly Ripping Off a Women's March Charity T-Shirt". Teen Vogue. Retrieved 2019-10-26.
  54. ↑ Segran, Elizabeth (2017-12-19). "Feminist designer: ModCloth ripped off my print and won't pay me back". Fast Company. Retrieved 2019-01-07.
  55. ↑ "Brooklyn Feminist Designer Says ModCloth Stole Her Print". Williamsburg-Greenpoint, NY Patch. 2017-12-19. Retrieved 2019-01-07.
  56. 1 2 "Giving Back: Elaine Richards of The Princess Project". Teen Vogue. 2012-03-09. Retrieved 2023-06-18.
  57. ↑ "The Princess Project: Helping teens find their prom dress -". McKinnon Broadcasting. 2019-04-05. Retrieved 2019-07-26.
  58. ↑ "HelpModCloth Donate Prom Dresses!". Seventeen. 5 March 2012. Retrieved 24 June 2016.
  59. ↑ "Prom For All!". ModCloth. 5 March 2012. Retrieved 24 June 2016.
  60. ↑ Launched in 2013 by founder Stacey Boyd, Schoola was an American online retail company that sold second hand women's and children's clothing. During its time, the retailer partnered and raised funds for over 10,000 schools throughout the U.S.
  61. ↑ "ModCloth & Schoola Team Up To Support The Malala Fund, How you Can Support The Cause". Bustle.com. Retrieved May 27, 2016.
  62. ↑ "About the Malala Fund". Malala Fund. Retrieved May 27, 2016.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.