Shoedazzle.com, which founder Brian Lee describes as “a personal online shoe-shopping experience with a boutique feel” is a way for the general public to buy designers shoes at an affordable rate. Shoedazzle.com is more than just a website to buy shoes, it provides each customer with a level of service that is truly revolutionary. Each shoedazzle.com member takes a style test and then they are assigned a personal stylist who on a monthly basis pick out shoes, handbags and accessories they think the member will like.
Shoedazzle.com uses both mass customization and one-to-one marketing strategies. Mass customization is implemented because there are hundreds of different shoe, handbag and accessory combinations that the shoedazzle.com customers can choose from. The one-to-one marketing strategy is utilized through the way that the stylists choose shoe, handbag and accessory options for each individual. The fact that the website gives each member on the website individual attention is a clear example of one-to-one marketing.
I feel that the wikinomics principle of peering is being employed very effectively by shoedazzle.com. Shoedazzle.com relies on the principle of self-selection. The stylists employed by shoedazzle.com are all top Hollywood stylists and celebrities, such as Kim Kardashian who have numerous other jobs and projects and have decided to use their free time to provide shoedazzle.com customers with style advice. What is even more amazing is that these stylists choose shoe, handbag and accessories options for each individual customer every month. That is a lot of free time that these stylists and celebrities dedicate to this website. These stylists and celebrities have a lot of valuable experience within the fashion industry and they want to share the knowledge they have acquired with others. The stylists on shoedazzle.com are able to expose the general public figure to the newest shoes, handbags and accessories on the market. The stylists also teach the customers the tricks to looking as fashionable as A-list celebrities. Fashion is something these stylists are obviously very passionate about and they want to make sure that everyone is able to look their best.
I think shoedazzle.com’s business model is very effective. The fact that each pair of shoes, handbag or accessory is only $39.95 is a very good deal. Most boutiques and other online shopping sites would charge more than $100 for similar quality merchandise. Shoedazzle.com’s very low pricing gives them a big advantage over their competitors. Along with the affordable pricing, shoedazzle.com also offers customers with unparallel customer service. Most boutiques or other online shopping website do not provide customers with their own personal stylist who recommend particular shoes, handbags and accessories and offer tips for how these items should be styled. Shoedazzle.com also provides free shipping which is another big incentive to join the website. Shoedazzle.com also offers the customers with a lot of flexibility. For example, if the customer pays the monthly membership rate of $39.95 and does not find a particular pair of shoes, handbag or accessory they want to buy that month, they can skip a month and their credit card will not be charged for the month. Along with flexibility, Shoedazzle.com gives customers a sense of control. Anyone can register for the website and are not charged until after they make their first purchase. The flexibility and control shoedazzle.com provides to its customers allows customers to feel comfortable with the website because there is limited risk to becoming a member. Once you become a member you are able to get exclusive promotions and preorder new merchandise. All of these incredible incentives to join shoedazzle.com has provided the website with a huge customer base. As of June 2010 shoedazzle.com has raised over $20 million dollars. I personally would not make any changes to shoedazzle.com’s business model because I think that the website is very unique and provides customers with exceptional value for their money.
Sources:
Los Angeles Business Journal, March 30, 2009 "If the Shoe Fits.MARKETPLACE Kim Kardashian and Brian Lee team up to launch ShoeDazzle.com Maya Meinert."
GlobeNewswire, June 10, 2010 "ShoeDazzle.com Raised $20 Million -- Incorporated Through LegalZoom"
Nice work on this case, Megan. You've shown how Shoedazzle applies key principles of Wikinomics and Web 2.0. I really liked your integration of video and graphics in the post - well done. Thank you for sharing this with the class.
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