ModCloth

ModCloth

Type	Private
Industry	Retail, Apparel, e-commerce
Founded	2002 in Pittsburgh, Pennsylvania
Founder	Eric Koger Susan Gregg-Koger
Headquarters	San Francisco, California, United States
Key people	Matthew Kaness, Chief Executive Officer
Products	Clothing, accessories, decor
Revenue	$150 million+ (2014)[1]
Number of employees	350+[2]
Website	www.modcloth.com

ModCloth is an American online retailer of indie and vintage-inspired women’s clothing.^[3] The company is headquartered in San Francisco^[4] with an office in Los Angeles and a joint office/fulfillment center in Pittsburgh.^[5]

History

ModCloth was founded in 2002 by Susan Gregg Koger and Eric Koger. Both Susan and Eric were students at Carnegie Mellon University and launched ModCloth as an online website to sell pre-owned vintage dresses.^[6] ModCloth grossed $18,000 in revenue in 2005, and received its first round of seed funding in 2008.^[7] In 2009, ModCloth reported $15 million in revenue,^[8] allowing them to relocate headquarters from Pittsburgh's Strip District to San Francisco.^[9] ModCloth reported $100 million in revenue in 2012^[10] and $150 million in 2014.^[11]

In 2015, ModCloth became a multi-channel retailer when it opened its first pop-up Fit Shop in Los Angeles, followed by another in San Francisco.^[12] ModCloth pop up shops carry a curated collection of ModCloth clothing and home decor, along with select pieces from local artists.^[13] ModCloth uses these pop-up stores to promote existing online and social media services such as Fit for Me and the Style Gallery.^[14] ModCloth will be opening pop-up stores in other cities as part of the 2016 “ModCloth IRL Tour”.^[15] Cities expecting to see pop-up shops include Washington D.C., Portland, Austin, and Pittsburgh.^[16] ModCloth plans to open permanent locations following these temporary store experiments.^[17]

Stance on body image

Truth in Advertising Act endorsement

In 2014, ModCloth became the first retailer to sign the Heroes Pledge For Advertisers.^[18] As an endorser, ModCloth committed to not use Photoshop to “change the shape, size, proportion, color, and/or remove/enhance the physical features” of its advertising models in post-production.^[19] In June 2016, ModCloth hosted an event on Capitol Hill to support the 2016 Truth in Advertising Act. Modcloth’s Susan Kroger spoke at this event along with Representative Ileana Ros-Lehtinen^[20] who was one of the introducers of the Act.^[21]

Real people as models

In 2015, ModCloth began using staff members as models for its swimwear advertising campaigns.^{[22][23][24][25]} ModCloth’s swimsuit campaign launched in response to research that correlated low self-esteem for women when exposed to thin models.^[26]

Plus-size rebranding

In 2015, ModCloth removed the plus-size term from its site.^[27] 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-labeled clothing.^[28] The plus-size clothing was integrated into the greater site and made shoppable through size filters.^[29] The “plus-size” label has also been replaced by “extended sizes”, which will also contain extra-small, petite, and tall clothing.^[30]

Crowdsourcing initiatives

ModCloth has developed several crowdsourcing initiatives that have impacted its product line.^[31]

Style Gallery

Style Gallery is a user-generated image gallery where customers send photos of themselves modelling in a purchased ModCloth garment.^[32] 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.^[33]

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 users’ reviews.^[34] 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.^[35][36]

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.^[37] Users voted on clothing samples via an online 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.^[38] Using this model, ModCloth became the first retailer to supplement an existing business model with crowdsourcing efforts.^[39]

Make the Cut

ModCloth ran the Make the Cut contest in 2012, where ModCloth created products based on consumer ideas.^[40] 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.^[41]

Philanthropy

On March 5, 2012, ModCloth announced a donation of dresses to The Princess Project. For every dress purchased from its Fancy Frocks collection that day, ModCloth would donate a dress to the non-profit.^[42][43]

In 2015, ModCloth began its partnership with Schoola to raise money for Malala Yousafzai’s Malala Fund, which advocates and supports education for young women.^[44] ModCloth participates in the cause by donating clothing which Schoola sells for a discount. The proceeds are then donated to the Malala Fund.^[45]

Accolades

• 2016 – Selected as Small Company Winner for Brand Building Marketing Team of ‘’Marketers That Matter’’ award (which is sponsored by The Wall Street Journal)^[46][47]
• 2013 – Ranked 19th on Fast Company’s “World’s 50 Most Innovative Companies” list ^[48]
• 2013 – Ranked 14th on Fast Company’s “Most Innovative Social Media Companies” list ^[49]
• 2012 – Founders Susan and Eric Koger named in Forbes’ “30 Under 30” list for Art & Style ^[50]
• 2011 – Founders Susan and Eric Koger named to Forbes' “30 Under 30” list for Technology ^[51]
• 2011 – Co-founder and CCO Susan Koger named a “Champion of Change” by The White House ^[52]
• 2010 – Named Fastest-Growing Retail Company in America by Inc. ^[53]
• 2010 – ModCloth receives a Webby Award for Best of the Web for Retail ^[54]
• 2009 – Founders Susan and Eric Koger named number 2 and 3 in Inc.’s “30 Under 30” list for Technology ^[55]

References