Fabletics has a unique reverse showroom engineering technique. This is helping them take on Amazon, which controls 20% of the online fashion industry. Fabletics owns both physical stores and an online store. They offer a subscription-based service to their customers. They have over 1 million customers who are subscribed to this subscription service. Thirty to 50 percent of the customers who walk into the stores are already paying subscribers. Another 25% of the customers will become subscribers inside the store. That is how this technique is possible. Instead of customers coming in and trying on products and then avoiding buying them because they are unsure if they want to buy it at the current moment, Fabletics just lets their customers choose to make the decision at a later time. Fabletics focuses on what their customers want. They know what their customers want by using their online data. They look at what customers in certain areas are buying online. They then can stock their physical locations with those products. They also look at a particular location’s social media feedback. According to Fabletics, the reason they have such a large growth rate is because they focus on three things. These three things are people, accessibility, and culture. By focusing on people, meaning their customers, they are able to retain their previous customers. They also focus on culture, meaning they look at trends in the fashion industry and what people want. Most of all, they focus on accessibility, which is possible through their subscription-based service. People are able to get clothing every single month at a very cheap price. People can also walk into stores at any time and get clothing.
Businesses like Fabletics are facing challenges. However, businesses are able to understand the new consumer. They offer unique designs, unique membership options, and a unique customer experience to grow their business. If you cannot do what Fabletics is doing, you will never be able to succeed because you will not be able to compete with the big ecommerce companies such as Amazon.
Kate Hudson is a member of the team at Fabletics. She endorses Fabletics, and she is involved in making the decisions at every level. She helps with everything, including design, marketing, and customer relationships. You should take the lifestyle quiz and find out which clothing is the best for you.
When most apparel companies decide to enter the market, they know that they are going to have a very rough go at it since Amazon already commands 20 percent of the market online. Apparently no one told Kate Hudson’s Fabletics that this was not the ring to be entering, and her company is beginning to dominate in a space that most fail. Looking at the last three years, Kate Hudson’s Fabletics has made over $250 million in sales and shows no sign of slowing.
Hudson was asked about the success of her company, and her responses were not at all what were expected. According to Hudson, reverse-showrooming and a unique membership platform are the keys to the company growing at such a rapid pace. To see the company in action, we have to head over to the local mall and visit one of the Fabletics retail stores. Women are encouraged to sign-up for the free membership and take the Lifestyle Quiz to unlock even more benefits. Regardless how many things you try on in the store, they are then kept in your online profile for your consideration at another time.
Hudson says that many of the women spend a considerable time window shopping and trying on her high-quality athleisure brand without buying at the retail stores. These women who tried on one or two pieces in the retail setting are now adding four, five, or more sets of workout gear and active-wear to their cart. These customers get free shipping, discounted pricing, and even their own personal shopper.
Speaking of personal shopper, as a member of Kate Hudson’s Fabletics, those who filled out the Lifestyle Quiz will now have a personal shopper who chooses one item each month and adds it to the shopping cart for consideration. The item is based on the quiz answers, customers size, and previous purchases. This formula might be a little unique, but it seems to have struck a chord with consumers looking for a better way to buy their clothing online. If sales are any indication of future success, Kate Hudson’s Fabletics is going to become a force to be dealt with in this space for many years to come now.
There are industry online retailers that have been in control of the sales for a number of years now. For instance, a recent research showed that a quarter of all the online retail deals made in the country are controlled by Amazon. This means that any newcomer to the industry faces stiff competition from the giants. This is the exact environment that Kate Hudson got welcomed to when she started her fashion line-Fabletics. However, a few years down the line, one can see the essence of the hard work, and the fact that she is breaking the glass ceiling is enough evidence that the industry giants do not have to dominate all the time.
Kate created fashion with a purpose, she wanted items of clothing that people would find fashionable while at the same time feel comfortable enough exercising in them. Previously, when one established a high value line of clothing, they would have two things as their selling point. These included the cost of the merchandise and the value of the goods. The main selling point for the items was the fact that they were buying something that was both trendy and unique. This has changed over time because every player in the industry is putting their best foot forward in a bid to win the most customers. To make any sales worth a discussion, you need a combination of positive customer experience, exclusivity of the design. When Kate Hudson was starting Fabletics, she based it on the said values and the results have been fabulous for her.
The smart business strategy that was applied by the leadership at Fabletics has been compared to Apple and Warby Parker. They have opened up stores in places such as Florida, Illinois, California and Hawaii. The secret that has led to their market domination, according to Gregg Throgmartin is their ability to create a brand that is of superior value but at the same time friendly to the user. The customers can thus feel stylish without having to lose their life savings for the same.
The marketing strategy that has helped them make the success they have is reverse show-rooming. Most of the people who shop online are looking for trendy items to go shop elsewhere, where the cost is friendlier. The sales team realized this and made retail part of their shopping experience, as opposed to it being the only component. Five years after Fabletics was established, they have managed to create a capital base of millions and a religion-like following. Their currently profits are to the tune of $250 million annually.