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ModCloth

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ModCloth
Company typeSubsidiary
IndustryRetail, Apparel, e-commerce
Founded2002 in Pittsburgh, Pennsylvania
FoundersEric Koger
Susan Gregg-Koger
HeadquartersLos Angeles, California, United States
ProductsClothing, accessories, decor
Revenue$150 million+ (2014)[1]
OwnerNogin, Inc.
Number of employees
350+[2]
ParentNogin, Inc.
Websitemodcloth.com

ModCloth is a Los Angeles based online retailer of indie and vintage-inspired women’s clothing.[3]

History

[edit]

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 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 to $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

[edit]

Truth in Advertising Act endorsement

[edit]

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 2016 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

[edit]

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

[edit]

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

[edit]

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

[edit]

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

[edit]

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 users’ 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

[edit]

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

[edit]

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

[edit]

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

Philanthropy

[edit]

On March 5, 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]

References

[edit]
  1. ^ a b "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. ^ a b 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. ^ a b "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.
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