Amazon presently controls 20% of the e-commerce fashion market and it is not easy for another brand to succeed in this segment, but Fabletics has defied the odds and thrived well in it. Fabletics, which is associated with Kate Hudson, has so far managed to grow its business worth $250 million in a period of just three years. It is part of an ‘activewear’ movement that is growing by the day, and Fabletics uses the subscription model to sell its products to customers. The brand banks on a simple premise where customers are treated to aspirational brands pushed a bit by membership and convenience to form a great combination.
Change in Combinations that Guarantee Success
Historically the high value brands have always been defined by their quality and price but a recent economics shift has made this combination fall short of guaranteeing success or being competitive. Currently, the real determiners of what modern consumers perceive as high-value are things like customer experience, exclusive design, last-mile service, gamification elements and brand recognition. Fabletics likens itself to brands like Warby Parker and Apple in terms of positioning and strategy and this has paid off immensely.
Fabletic’s Secret to Success
Gregg Throgmartin, Fabletics’ general manager, revealed that the secret behind the huge success was through building a reimagined and modern version of a high-value brand since the first day. The membership model used by Fabletics allows the brand to offer its customers a personalized service and get them on-trend fashion for half the price charged by the competition. Gregg adds that it gets easier to appease customers when the company understands them and their needs.
How has Fabletics Used the Reverse Showroom technique successfully?
Fabletics encourages the use of “reverse showrooming” and does not suffer like its counterparts due to showrooming. This refers to the situation where people browse for products offline and then buy the items they need elsewhere cheaply. Fabletics chose to reverse this trend by using the membership model where it builds relationships, gets relied and knows the local markets clearly using a number of activities and events. This ensures that about 30-50% of all customers shopping in stores are members while another 25% sign up for the membership in store. When a customer tries on clothing, it goes to their online shopping cart as well. Even though the customer does not buy in store they can get it via retail.
Fabletics refers to a retailer who deals in athlesisure (accessories and sportswear) and sells them via online subscription. Members are offered personalized clothing specifically chosen for them in accordance with their fashion and lifestyle preferences. Fabletics is a subsidiary of TechStyle Fashion Group (formerly JustFab).
In July 2013, Fabletics was established by Don Ressler, Kate Hudson and Adam Goldenberg but it was launched officially in October 2013. Fabletics added FL2, an activewear line for men with Oliver Hudson, an actor and brother to Kate Hudson in June 2015. Its revenue has increased by 35% every year according to Forbes.