In 2017, it is impossible to create a fashion brand without thinking about how you will compete with Amazon. The massive online store controls over 20% of the entire e-fashion industry. However, Kate Hudson’s Fabletics is doing exactly the unexpected, expanding with the last three years seeing the business grow into $250 million enterprises.
Fabletics employs subscription mechanism to sell products to its consumers. This method is part of it’s as part of its “activewear” growing movement. The brand uses a very simple assumption that the customer is attracted to inspirational products. Once you combine that with convenience and membership, you get a powerful combination.
In the past price and quality of the products were the major aspects that determined how fruitful and competitive the brand was. However, with the changes in economics, these two are not enough to compete or assure success. The modern consumer is concerned about other things including customer service and experience, design and gamification elements, brand recognition and last mile service.
Fabletics have adapted the Apple and Warby Parker strategy of buying membership brand, and the strategy is paying off. The brand is expected to open more physical stores within the year to add on to the sixteen existing ones.
In the opinion of Fabletics General Manager, Gregg Throgmartin, the secret to their success lay behind their initial creation of modern day and reimagined high-value brand. Also, he thinks that their membership model is what allows them to offer a more personalized service and at a lower price compared to their competitors. This is considering that when you know what the people wants, you provide exactly that.
Three Different Way Fabletics Run their Physical Stores
Encouragement of reverse showrooming
Instead of the standard method by competitors where customers browse the products and then shop in various stores, Fabletics focuses more on building a relationship with the clients. This way, they have been able to understand the local market and what their customers are looking for. The result is that 30-50 percent of all clients who walk in are already a member. Of those who walk in and are not yet members, 20 percent convert by the time they are leaving the premises.
Power of Online Data
Fabletics maintains customer trust through the provision of the right content both physically and online. Using the data collected online from their members, they can stock their physical stores accordingly. They measure their success through a combination of global fashion trend and customer preferences.
Focusing on People, Culture and Accessibility
Like many other fashion brands, Fabletics is faced with challenges and especially when entering new markets and facing new competitors. However, they have ample knowledge on balancing between consumer education, customer service, and lifestyle. Provision of quality products and competitive price determines their fast growth rate. They also accredit the growth to a creative team, in-house media, and an official spokesman.
Back 2013, Don Ressler of JustFab Inc and Adam Goldenberg in conjunction with Kate Hudson founded the Fabletics brand. The lack of activewear inspired their decision in the marketplace. Despite the luxurious product in the market, none offered stylish and high-quality gear at an affordable price. The three joined hand and came up with the brand.