Forever21 made its first start-up investigation by investing $8 million in DailyLook, an LA-based apparel subscription service launched by Korean.
The leading fast-fashion retailer Forever21, with a venture capital firm Upfront, invested $8 million in DailyLook.
DailyLook is s fashion box market service launched by Korean-American entrepreneur Brian Kim in 2011. The service, which is available for $40 a month, provides a monthly recommendation of 7-12 pieces of clothes. Once received, customers can choose to purchase their picks and return the rest.
In the initial phase of the business, DailyLook’s service was more like an online store. However, it took a turn in 2013 as a subscription service, which gave the business a potential to grow.
“When we started the fashion box service, only 50% of the recommendations were connected to the sales,” said DailyLook CEO Brian Lee. “However, the individual algorithm increased that rate up to 80%.”
Forever21 is expected to build a growing relationship with DailyLook as the start-up service is highly likely to provide data about customers’ preferences.