Kate Hudson’s Fabletics is focusing on taking on Amazon in the fashion e-commerce industry. This process will not be easy as Amazon already controls over 20% of the fashion e-commerce market. However, the quick growth of Fabletics from a startup company to a $250 million business in under three years is an indication that the company has its eyes focused on the ultimate prize.
Unlike Amazon, Fabletics uses a different business approach. Its strategy involves a subscription mechanic to sell to clients. This method has been borrowed from sister brands such as JustFab and FabKids. The combination of membership and aspirational brand is what has helped to accelerate the growth of Fabletics. The system has resulted in loyal customers and steady source of income.
In the past, prices, quality of services, and product offing determined the success of businesses. However, this situation has since changed. The new business environment has given rise to companies that are employing better brand recognition strategies, enhancing customer experiences, and augmenting last-mile services. Factors such as design and gamification are continually becoming important aspects in business.
In many occasions, Fabletics has been likened to other renowned brands such as Apple and Warby Parker. Analysts believe that this comparison is legit considering the quick growth of the company. Recently, the brand announced it would be opening more stores in Hawaii, Florida, California, and Illinois. This situation will see the number of the company’s physical stores rise to 16.
According to Fabletics’ general manager, Gregg Throgmartin, the company’s success can be attributed to its commitment to offer a modern ‘high-value brand’ from day one. Through the model, Fabletics has been able to provide clients with personalized services and on-trend products at half the price of the company’s competitors. This information was originally mentioned on Forbes.
Fabletics’ business strategy encourages ‘reverse showrooming.’ Because of its cheaper products, the company has been able to attract many buyers. This approach has ensured that the corporation sells more products and generates adequate revenues, which are channeled towards its expansionary objectives. According to the company’s new model, between 30 percent and 50 percent of the customers who walk into Fabletics’ store are already members. Another 25 percent of the consumers become members as they shop for their items at the store.
In order to maintain its customer’s brand journey, the company continues to show the right content in the digital and physical spaces. Fabletics’ stores are stocked based on real-time sales activities, store heat-mapping data, social media comments and membership preferences for local members. The company is ready to provide its consumers with the perfect experiences both offline or online. Fabletics is optimistic that its fashion brand will grow stronger in the coming years.
Fabletics is an online subscription retailer. The company sells women’s sportswear and accessories. Recently, the retailer introduced athleisure for men. In addition, Fabletics has an effective online platform. Moreover, the company has been opening physical stores to boost its market penetration. Fabletics operates on a model where clients are provided with personalized outfits based on their lifestyle and fashion preferences.