Zindigo Raises $4 Million From Individual Investors And Partners With Over 80 Apparel And Accessories Designers To Turn Social Users Into Retailers
Zindigo Believes It Has The Winning Formula To Monetize Social, Also Recruits Neiman Marcus Group Veteran Kareen Mallet
NEW YORK, Oct. 10, 2012 /PRNewswire/ -- Zindigo (www.zindigo.com), the fashion industry's social commerce solution, has raised $4 million in funding from angel investors and contracted with over 80 apparel and accessories designers as it prepares to roll out shops with specialty brands on Facebook. Kareen Mallet, former Senior Director of Ready-to-Wear for the Neiman Marcus Group's Fashion Office in New York, has joined Zindigo as Fashion Director. Zindigo empowers the world's social users to become retailers by offering them an unprecedented opportunity to connect with brands—a 40% revenue share.
"Social networks are powerful, yet brands are still puzzled by how to convert social activity into sales," said Zindigo founder Michael Bereck . "Zindigo cracks the code to social commerce with a new formula: compelling + motivation = social traction. A compelling selection of hard-to-find merchandise combined with the irresistible motivation to earn profits will result in social distribution."
Zindigo will allow social users to open an individual designer's fully merchandised shop or a multi-brand shop on Facebook or any social platform or blog, suggest favorite products to friends, and earn 40% of every sale. Brands have traditionally relied on retail partners for distribution and now consumers can partake in the distribution, and influence a brand's widespread discovery. This brand "ambassador" approach to social engagement encourages social users to become entrepreneurs and market their own customized shop to friends. Zindigo will provide a turn-key business, with sales tracking and analytics, as well as tools for competitive selling—free shipping, Facebook advertising and charity donations—that ambassadors can choose to apply to their bottom line. Ambassadors will earn an additional 3% of sales for up to five years from the shops of friends they have referred on Zindigo.
"I have spent my career watching talented designers struggle through the challenges of building a business and developing their distribution," said Mallet. "Brands are looking for new customers and consumers are looking for unique brands, but distribution barriers limit the connection. Zindigo removes these barriers with a model that empowers the social generation to become entrepreneurs by operating their own store on today's hottest 'real estate'—social networks."
Among the fashion designers across a variety of categories that will debut Zindigo shops are Be&D, Cluny, Dallin Chase , Geren Ford , Isabella Fiore , Jay Godfrey , Kara Ross , M.C.L., Nicole Romano , NoNoo, Phoebe Couture , Raoul, Rolando Santana , and Ruffian.
Zindigo's formula for leveraging social commerce connects fashion brands and consumers via social networks. Zindigo empowers the world's social users to become retailers by offering a compelling selection of specialty brands and significant revenue share—40% of sales—introducing a new level of consumer engagement unprecedented in the fashion industry. Zindigo was established in 2011 by Michael Bereck , a pioneer of e-commerce for luxury fashion brands, to once again partner with designers and specialty brands to gain traction through the power of social platforms. For more information and to join Zindigo visit www.zindigo.com.
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