Fabletics, an activewear fashion brand from Kate Hudson, has succeeded in carving out a market niche for its products in the Amazon-dominated fashion e-commerce market. Presently, Amazon controls a whopping 20 percent of this market. Despite the odds, Fabletics has grown a $250 million business right under Amazons’ nose – that too in under three years. The company is riding on the activewear movement euphoria that has gripped the market as more and more people look to live active lives and remain fit.
Fabletics uses a highly efficient subscription business model to drive sales and retain repeat customers. Their subscription structure is convenient and pushes customers to live active lifestyles. This allows the firm to offer its stylish products at lower prices than its close competitors.
Historically, high-value brands have been associated with quality products and high prices. However, market dynamics have since shifted rendering this analysis untrue. Today, customers value goods according to factors like exclusive designs, last-mile service, brand recognition in the market, customer experience as well as gamification elements. So far, Fabletics’ fashion membership brand has paid off, and the store is looking to open more physical outlets across America.
Fabletics Using Reverse Showrooming to Boost Sales
Fabletics encourages the use of the “reverse showrooming” model. Regular showrooming allows customers to browse products offline (in physical stores); however, more and more people end up buying cheaper items elsewhere. But Fabletics has managed to positively turn around browsing to their advantage by building relationships and creating awareness for their brand. At least 30 percent of people walking into their stores are members, while another 25 percent of shoppers walk out as new members. Furthermore, the company does not put emphasis on where customers buy in-store; instead, they have turned retail into a service.
Fabletics also understands that although online data is at the center of successful retail strategies, it is not the only factor. The company is careful not to disrupt a customer’s brand journey by showing the right content physically and digitally, and stocking items in tandem to customers’ preferences. It stocks its stores in line with global fashion trends and preference data collected.
Finally, Fabletics realizes that growth is reliant on accessibility and a focus on culture, and people. It has successfully balanced lifestyle, customer experience, and consumer education into its sales mix – with great results.
A Non-Partisan Fabletics Review from Teri Hutcheon
One year after joining Fabletics as a paying member, Teri Hutcheon started receiving free workout clothes from the brand. According to her, the Kate Hudson-owned Fabletics is a fitness apparel company that has a monthly membership model. All first time VIP Members buy their first item at only $25 and get discounted prices on other items. The main benefit of a VIP membership is the monthly curated items one receives (sometimes up to 2-3 piece outfits) for only $49 to $59. Hutcheon loves Fabletics because of its top quality and stylish clothes, easy to use website, offers great value, and has excellent customer service.