US design flash shopping site Fab in trouble can come back?

According to foreign media reports, the US design flash buying website Fab into trouble, its CEO Jason Goldberg (Jason Goldberg) once again found a new way for it. After a large number of home-based Web site acquisition, launched a new home site Hem.

Investors are not satisfied with the plight of e-commerce site Fab encountered, so that Goldberg will be forced to step down. However, Goldberg is trying to prove through the website Hem that he can build a successful business with the support of a $ 300 million venture capital investment.

Asked if Hem could help Fab to become a billion-dollar company, Goldberg said: "Just as I promised to investors, we are not just building a business that ends two years ago, It's about creating businesses that can last ten or twenty years. "

In order to realize this idea, Goldberg needs to make Hem a successful brand without any controversy. Looking back on the development of Fab, all ups and downs, in less than a year, the number of its employees has dropped from 700 To only 200 people. Fab announced the first large-scale layoff in a month after its $ 150 million financing. That same time, Fab's total external financing has reached 300 million US dollars. Goldberg has been carrying out four rounds of layoffs and restructurings, leaving many industry observers skeptical if he knows exactly what he is doing and why he is in charge of the company.

Hem, which was released last week, is expected to come online in the next three months, mainly selling Fab-designed home products. According to Goldberg, the Hem brand will be able to beat other products in addition to its design excellence: first, tailor-made to customer requirements; and then assembly without tools. With no reseller plus complete control of everything from design to production, Hem products cost less and their product quality will be better.

However, there is a great risk that the home industry, which places its hopes on the slow growth of online businesses. However, Goldberg believes he believes the Hem project will have a very positive effect, based on his past experience of operating private-label furniture and home furnishings. In 2013, Fab entered the home business through the acquisition of Massivkonzept, a German online custom furniture company, which now has sales of more than $ 10 million, close to breakeven. In addition, Fab acquired the Nordic furniture design company One Nordic. I believe Hem (family) is the term comes from this company.

The store will play an important role in Hem's brand strategy. The brand will open three physical showrooms in Germany, as well as similar physical stores in Stockholm, Helsinki and New York. In addition, the company may sell its products through other retailers. Goldberg said it will not be sold online.

While Goldberg is significantly more excited about the Hem brand than the Fab itself, Fab.com will continue to exist, operated by a small team in New York, and the technical team will remain in India. Fab.com will continue to run other designer and retailer products, and will focus primarily on gift design and collectibles. The self-designed products will be transferred to the Hem website for sale.

Goldberg's problem is that his ideas are changing. After the first wave of layoffs last Fab in the summer of last year, Goldberg said it will re-plan resources from flash-buying to traditional e-commerce. However, after the last wave of layoffs was completed, the company said it would release more resources to sell its own-brand furniture and home decor.

Asked if Hem if it still does not, it will have the next chance? Goldberg smiled and said: "I assure you there will be more chapters of the story, we will always try."

It seems that this roller coaster Goldberg has not shown any sign of deceleration. (Bing Han)