Spotlight on How Fabletics’ Is Challenging Amazon’s Hold on the Fashion E-Commerce Market

It is no mean feat for a company to gain success in fashion given that Amazon runs 20% of the whole fashion e-commerce market. However, Fabletics has managed to break the odds. It managed to grow a business worth $250 million in three years. It is part of the developing ‘activewear’ movement. Fabletics favors the subscription mechanic in making clothing available to customers. Customers love brands that push them a little and are aspirational, Fabletics adds membership and convenience in the mix creating a powerful combination.

 

What Determines High Value to Modern Consumers?

 

Historically, brands of a higher value were defined by the quality and price of their goods and services but a recent shift in economics occurred. This shift means that this earlier combination cannot guarantee competitiveness and success today. Modern consumers determine a high-value brand based on brand recognition, customer experience, last-mile service, gamification elements and exclusive design. Fabletics likens itself to Warby Parker and Apple and its positioning and strategy have started paying off. Fabletics is set to open additional physical stores later in the year. This will increase the number of stores under the brand from the 16 stores that exist in areas like Illinois, Hawaii, California and Florida.

 

What is Fabletics’ Secret?

 

According to Gregg Throgmartin, the general manager of Fabletics, the secret is in the building of a reimagined and modern version of a ‘high-value brand’ from the start. The brand’s membership model allows it to offer more personalized services and on-trend fashion at half the price of the competitors. It is much easier for a brand to make its customers happy when it knows who they are and what they want.

 

Fabletics’ Reverse Showroom Technique

 

Fabletics, unlike their counterparts “getting massacred” by showrooming, has managed to reverse this model due to the unique way it started out. Showrooming refers to the situation where customers browse offline and end up buying items at cheaper prices elsewhere. Fabletics managed to change browsing from a negative to a positive. As much as the brand has followed the pop-up store, its current strategy has helped it to nurture relationships, become reliable and understand the local markets better via activities and events. This has seen every 30-50% of people entering the store being members while another 25% of these people become members in the store. Whenever a customer shops and tries on any clothing, it is put on their online shopping cart.

 

About Fabletics

 

Kate Hudson’s Fabletics is a fitness clothing company that operates via a monthly membership structure. VIP Members buy their first outfit at only $25 plus discounted prices on various other items. Members who do not need anything can skip a month for free. Immediately after becoming a member, customers ought to take a survey to find out their favorite workouts and outfit styles they prefer. Fabletics then picks out workout outfits for every member in the beginning of every month. Fabletics guarantees style, quality, ease of use, customer service and value. If you are looking for the best workout outfits, go on and take a Lifestyle Quiz on Fabletics to get the best workout gear for you.

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How Fabletics Digital Philosophy Fuels Success

Many companies these days claim to have a great online or digital experience. They have active social media profiles and websites where you can order many items. However, many fall short when it comes to delivering that seamless experience for the consumer that transcends retail almost entirely to bring the full experience to the user within the comfort of their computer, tablet of phone right from the comfort of their own home.

One company that stands apart as being truly digital first is Fabletics. If you haven’t heard of it, it is a brand that sells “athleisurewear,” and is headed up by actress and fitness guru Kate Hudson. Athleisurewear is athletic wear that transitions from place to place, meaning you can go for a run or hit the gym or yoga studio and then be trendy enough to run errands, do some shopping or grab a lunch. The company has been around for about 3 short years and since then has gone from an small startup to a $250 million dollar company with over 1.4 million members across the world.

The secret for their success? They use a reverse showroom model that brings the full “showroom” or store experience to their customers online. Fabletics website is its own little world and store that members can come back to again and again to keep up with trends. Fabletics uses a membership model so that once a member signs up, they receive a consistent monthly shipment of an outfit of Fabletics’ high end athletic gear. From there, they can either return the pieces they don’t like, or keep them. The simplicity of the reverse showroom model also means that Fabletics has significantly lower overhead than many other stores in its vertical. Additionally, Fabletics is a data first company and uses specific consumer data to determine what will sell in the future and to easily pivot trends to make sure customers are incredibly happy with their membership. All of these factors combined have brought Fabletics the success it has seen today by becoming a company that prioritizes digital.

It also must be mentioned that Kate Hudson’s work with Fabletics is another reason it has been so successful. She said that when becoming the spokesperson for Fabletics, she always intended to be more than the fact of the commercials. She truly believes in the product and in bringing quality athletic wear at affordable prices to women across the globe.