The pandemic forced nearly every industry to modernize. For the wholesale industry, the shift was embodied by the adoption of digital solutions that the industry had previously shied away from. With lockdowns shutting down showrooms and tradeshows, two of the primary mechanisms for B2B wholesale commerce to do business, digital platforms that replicated the in-person experience thrived. JOOR is a wholesale management platform and marketplace that connects retailers, vendors, and brands for fashion, luxury, and home goods. The all-in-one platform provides a seamless virtual showroom experience and handles discovery, transactions, and payments. There are over 12,500 brands and 325,000 retailers transacting on the marketplace currently with no signs of slowing down.
AlleyWatch caught up with CEO Kristin Savilia to learn more about how the pandemic resulted in an enduring behavioral shift in the wholesale space, the company’s strategic plans, latest round of funding, which brings the total funding raised to $82.5M, and much, much more.
Who were your investors and how much did you raise?
JOOR has raised $46M in Series D funding led by Macquarie Capital Principal Finance. Previous investors ITOCHU Corporation, Battery Ventures, and Canaan Partners also participated.
Tell us about the product or service that JOOR offers:
JOOR is the world’s leading wholesale management platform for luxury, fashion and home, enabling brands and retailers to connect, collaborate and transact with ease. We currently have over 12,500 brands and more than 325,000 retailers from 144 countries conducting business on our platform, processing over $1.5 billion in wholesale transactions each month. JOOR provides a complete digital ecosystem, combining best-in-class virtual showrooms, advanced assortment planning functionality, and real-time data analytics and reporting to facilitate and streamline the entire wholesale buying and selling process. Last year, JOOR launched JOOR Passport: a centralized destination where, with a single log-in, buyers from around the world can explore and shop the industry’s leading fashion weeks and global trade show events. Because JOOR is cloud-based and accessible across iPad, mobile, and desktop, the platform is utilized by brands and retailers whether they are meeting physically in a showroom or connecting virtually from anywhere in the world.
What inspired the start of JOOR?
The traditional way of conducting wholesale business in the fashion industry was an antiquated and very manual process. While the B2C side of the business rapidly adopted digital and invested in e-commerce, on the B2B side brands and retailers were still using paper line sheets and Excel spreadsheets to build their assortments. We recognized that digitizing that critical moment when decisions are being made about what product is going to be carried on the selling floor or e-commerce site was just as critical if not more critical than digitizing the consumer experience.
How is JOOR different?
JOOR has revolutionized the wholesale buying and selling process, uniquely providing a complete digital ecosystem for brands and retailers where data flows back and forth digitally, not manually. We pride ourselves on our consultative approach, driving efficiency and business growth for our clients.
We launched our business with a focus on the luxury industry. Rather than building our network across a wide breadth of verticals, we have strategically approached growth by building deep expertise in each category we enter, including men’s and women’s fashion, accessories, footwear, jewelry, and home.
JOOR is the only truly global wholesale platform, including 11 offices around the world offering 24/7 customer support. Building on our leadership position in North America and Europe, we recently opened an office in Shanghai – becoming the first global B2B wholesale platform to launch a presence in mainland China, providing us with the resources to deliver excellent customer support across the Asia-Pacific region.
What market does JOOR target and how big is it?
We began with a focus on the luxury market, where we currently have a 75% market share. We have since expanded to advanced contemporary and contemporary fashion, as well as home. In total, this represents a $500+ billion wholesale market.
What’s your business model?
Brands and retailers receive a basic level of access to the JOOR platform for free. Expanded access including more enriched features and advanced functionality is available based on upgrading to a paid membership.
How has COVID-19 impacted the business??
The global pandemic has accelerated digital adoption within the wholesale industry. Our new business has grown 228% in the last 12 months. That said, the manner in which clients are using the platform has shifted dramatically during the past year. Prior to the pandemic, JOOR was widely used by clients as a supplement to their in-showroom experience, to assist with assortment planning and order writing via our iPad app. Over the past year, traffic almost entirely shifted to the desktop cloud-based version of JOOR that enables access to virtual showrooms 24/7 from around the world. Now as we prepare for the return of in-person appointments and tradeshows, we anticipate that the industry will strike a balance and use JOOR for both in-person collaboration as well as virtual selling opportunities.
What was the funding process like?
It was a very exciting process. Our numbers are very strong, and investors applauded the flexibility and continued innovation that we demonstrated during the pandemic. The financial community recognized our laser focus on listening to our clients and delivering meaningful solutions that will define the future of our industry, which resulted in a lot of interest in JOOR.
What are the biggest challenges that you faced while raising capital?
The backdrop of the pandemic was both helpful and harmful. Investors needed to understand that retail would recover and that our success was not due to a moment in time – rather that the digital adoption brought on by the pandemic has resulted in a permanent change in behavior, with brands and retailers not willing to revert to the old ways of doing business.
The backdrop of the pandemic was both helpful and harmful. Investors needed to understand that retail would recover and that our success was not due to a moment in time – rather that the digital adoption brought on by the pandemic has resulted in a permanent change in behavior, with brands and retailers not willing to revert to the old ways of doing business.
What factors about your business led your investors to write the check?
JOOR has built the largest wholesale network of brands and retailers worldwide, and this incredibly engaged network drives $1.5 billion in wholesale transactions on the platform every month. The opportunity of capitalizing on this GMV by providing expanded payments offerings and financing options is of great excitement.
What are the milestones you plan to achieve in the next six months?
We will continue to invest in our platform and enhance the capabilities that we are able to provide to our brand and retail partners. In particular, we will fuel product innovation, expand our payments offering with financing capabilities, launch advanced search functionality to facilitate shopping across JOOR Passport and our marketplace, and continue to grow through geographic and vertical expansion.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
It’s very important to understand the market need that you are addressing and remain very focused on your value proposition. When prioritizing resources, invest in your most valuable asset and do not spread yourself too thin trying to accomplish everything without excelling at anything.
Where do you see the company going now over the near term?
From the beginning, our success has depended on the success of our partners. As such, we remain focused on providing exceptional customer support and will continue to accelerate product innovation in service of our clients. We see the use of mobile devices coming back stronger than ever, as brands and retailers adopt an omni-channel approach with our cloud-based platform.
What’s your favorite outdoor dining restaurant in NYC?
It’s been great to see how many restaurants in NY have added outdoor dining in order to expand their capacity. One favorite that is my go-to spot near the office is L’Amico.
