Currently, Amazon controls 20% of e-commerce market for fashion. Thus, the feat by Fabletics of growing to $250 million in three years is no mean feat. Fabletics by Kate Hudson is a part of the ‘active wear’ movement that has caught on in recent years. The brand utilizes a subscription model of business to sell clothes to its customers. The combination of quality fashion pieces and subscription has been a powerful winning formula.
In the past, high-quality fashion pieces have usually been defined by high prices. However, this model does not appear to work in the current economic environment. A number of other things have to come into play if high-end brands want to succeed. For instance, gamification, exclusive design, brand recognition, the last –mile service and customer experience play a crucial role in guaranteeing sales.
Thus far, Fabletics’ strategy appears to be doing quite well. The company is also evolving its strategy with physical stores. It currently operates sixteen stores in Illinois, Hawaii, California, and Florida. The general manager claims its secret to success has been offering personalized services and lower costs compared to the competition.
How Fabletics are Revolutionizing Physical Stores
The company uses a technique called reverse showrooms. It does not matter to them whether a client makes a purchase or not. For instance, if a customer tries on an item in the physical store, it is added to their online cart. The result is that there is no difference between the physical store and the online store. The company focuses on relationship building with its online stores. The result is that 25% of all people who walk into their store end up becoming members.
Additionally, the company usually stocks up their local stores using data they gather online. The result is that members in a location will find items in the physical store to which they already have a huge affinity. The company uses various data sources including social media sentiments to determine which products their customers want. The strategy has proven quite successful thus far.
Another way through which Fabletics is growing its brand is by focusing on people and culture. It employs a team of experienced experts who are able to appeal to the new generation of shoppers who demand quality and great prices. The company is one of the greatest success stories because of the wise use of data science.
It is a company created in 2013 with the aim of closing the price gap in the sports activewear industry. The founders wanted to create a brand that would allow them to reach out to the growing number of activewear enthusiasts that wanted to save money too. The company uses a very simple strategy. New customers can choose to shop or sign up for membership. There are so many perks to signing up that most people usually end up doing it. Each month, members are presented with new releases from Fabletics that are personalized to their unique tastes. The company also requests new members to take a short quiz. It is designed to ensure that they get outfits that are best suited to their unique tastes.