In three years, Fabletics has grown into a $250 million business. It is a great accomplishment considering Amazon presently controls 20% of the e-commerce fashion market. Kate Hudson’s company has succeeded in fashion because of being part of the evolving activewear movement. It applies a subscription model to sell clothing to its clients through a powerful combination of aspirational brands, convenience, as well as membership.
Historically, high value brands have been defined by price as well as quality of the products. However, a change in economics has made the elements no longer adequate to guarantee competitiveness and success. Instead, things such as customer experience, last-mile service, exclusive design, and brand recognition are becoming more important as the new determiners of what can be regarded as high-value to the current consumer.
The company’s strategy of likening itself to Warby Parker and Apple is paying off. Additionally, Fabletics positioning strategy has contributed to its success. This year, the fashion membership brand will be launching additional physical stores. They will add to the existing sixteen stores that are operational in areas like California, Hawaii, Florida, and Illinois.
According to Gregg Throgmartin, the secret behind the accomplishment is that from the start, the company thinks it is creating a re-imagined and a modern version of a high value brand. Throgmartin is Fabletics’ general manager. He notes that the company’s membership model is what facilitates it to provide personalized service and on-trend fashion at a lower cost to its counterparts. He points out that it is much easier to please people when you know their tastes and preferences.
Noteworthy, Fabletics has been successful because of the different ways that it runs its physical stores. The key to this success is that the company encourages reverse showrooming. Fabletics has reversed shopping approach. Unlike competitors, Fabletics is not affected negatively by showrooming where individuals browse offline but end up purchasing items elsewhere. The company has made browsing to be a positive behavior among shoppers. This is because of the inimitable way it launched its operations. It did not go the pop-up store way. Its current strategy allows it to build relationships that can be relied upon. It also enables it to know the local markets better via events along with other activities. This way, 30-50 percent of the individuals that enter their physical stores are already members. Additionally, 25 percent become members in the store. While a customer is shopping and tries a different outfit, such information goes into the customer’s online shopping cart. It does not really matter whether a customer buys in store or online. To Fabletics, retail is another aspect of service.
Fabletics is a leading activewear brand. The retailer operates through an online subscription platform. Additionally, Fabletics has several physical stores. The brand offers its members personalized clothing selected for them based on their fashion preferences and lifestyle. Kate Hudson, Don Ressler, and Adam Goldenberg formed Fabletics in 2013. Members form the core of the brand’s business. Fabletics prioritizes their gratification.