Today we’re delighted to welcome ecommerce website Fab.com to the PCH family.
This acquisition for an undisclosed amount of cash and equity aligns with our strategy to enhance our distribution channels for designers and startups that partner with us.
“We are delighted to announce the acquisition of Fab,” said PCH Founder and CEO Liam Casey. “We love the brand, the customer experience, and the focus on lifestyle products.
We see an opportunity to reinvigorate the Fab audience – keeping the current focus, and adding a variety of more distinct and exclusive goods from designers. And because Fab has a flexible and dynamic technology platform, we have a good foundation to test new selling modes that will excite customers.”
In recent months, Fab has undergone significant restructuring to bring costs in line with sales, to stabilize operations, and to grow its core audience of urban professionals and design enthusiasts. As a result, Fab is a smarter, more efficient organization under the leadership of General Manager Renee Wong. Fab has a high Net Promoter Score, indicating that shoppers are pleased to recommend the experience to friends.
As part of the deal, 35 Fab employees – including engineers, merchants, graphic designers and marketers – will remain with the company. Fab founder and former CEO Jason Goldberg has stepped down as CEO and will not be involved with the business going forward. Renee Wong, general manager since May 2014, will continue to run day-to-day operations.
Key hires in merchandising, marketing and creative will be added to supplement the experienced core team, and additional investments will be made to grow the business, solidify existing supplier relationships and attract established and emerging designers. PCH will also explore forming a design advisory board and recruiting a creative director in residence.
“We will work with third party brands, as well as partner with industrial design firms and design schools around the world to identify up-and-coming designers and give them a platform to bring products to market on Fab,” Liam said. “And, we will continue to work with the designers and brands we know to bring new products to Fab’s audience.”
PCH has expertise in managing a just-in-time supply chain and advocates lean inventory practices that reduce the risks associated with inventory buildup and the waste related to over-production.
“We will experiment with emerging ecommerce strategies that stimulate demand by offering a limited number of exclusive, on-demand products in a narrow window,” Liam said. “We can take products from concept to manufacturing and deliver them straight through to customers, which means we have a lot of flexibility to do things differently.”
PCH, a privately held Irish company with USA headquarters in San Francisco, had over $1 billion in revenue in 2014, and works with some of the best-known brands in the world to make and deliver consumer products internationally. The company has significant manufacturing operations and logistics facilities in Shenzhen, China.
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