Amazon controls an almost quarter of the e-commerce market of fashion. This makes Amazon a very tough competitor to take on, and Kate Hudson’s Fabletics is doing it. In three years, Fabletics has become a $250 million business. There are two things which have made the company very popular: activewear and subscription mechanic. They key to combine the brands that customers like and membership.
There was a time when goods quality and price defined the high-value brands. This strategy is not going to survive for long due to changes in the economy. Factors like brand recognition, last-mile service, gamification elements, customer experience and exclusive design are going to define high-value now. The Fabletic’s strategy of fashion membership brand is making it a successful business like Warby Parker and Apple. The company has physical stores in California, Florida, Illinois and Hawaii. They plan to inaugurate their sixteenth outlet this year.
General Manager of Fabletics, Gregg Throgmartin thinks that the company is building a modern and reimagined version of ‘high-value brand’ from day one. He said, “Our membership mode is what allows us to offer personalized service and on-trend fashion at half the price of our competitors. It’s just a lot easier to make people happy when you know who they are and what they want.”
The reason why others failed is that people would explore their showrooms but not purchase the products. Rather they would buy from other places where the prices are lower. Fabletic’s started with the opposite strategy. They made browsing a positive thing than a negative one. The company had the option of using the pop-up store, but they decided to build relationships with customers. They wanted people to rely on them. Therefore, they decided to use events and activities to understand the local markets. The results were amazing. Half of the people that entered their stores were already members, and a quarter more would become members there. An article of clothing goes into the customer’s online shopping cart when she is trying it. Fabletics believes that retail is another part of the service, so it is up to the customers from where they buy it.
Another important part of Fabletic’s strategy is showing the correct information in both physical and digital forms. Customers like companies that provide the right information for their brand journey. Online data helps to decide what to keep at the physical stores because trends and tastes keep changing. The information is collected from sources like real-time sales activity, social media, local membership preferences and store heat-mapping.
SVP Operations for Fabletics Dustin Netral said that the increase in shopping is very important for them, but it requires a combination of preference of users and trends of global fashion to build a brand. He further added that they continuously include new ranges and perform clever tests.
Despite challenges, Fabletics is evolving due to its customer friendly strategies. Corporate Marketing Officer for parent company TechStyle Fashion Group Shawn Gold said that their brand is growing 35% every year. He added that the growth is due to factors like good quality, excellent price, creative teams, in-house media and honest spokesperson. Thanks to data science and return on investment, Fabletics is now operating in ten countries.