Can an online activewear fashion company challenge the trillion-dollar online retailer Amazon, who controls approximately 20% of the online fashion market? With high-quality products, specialized customer service, and marketing genius.
Kate Hudson’s Fabletics has grown into a $250 million empire in a little over 3 years by taking a different approach to fashion and how it is marketed. It used to be that high-end fashion brands captured market share by the quality they provided and the price in which they were sold, but with the advent of the information age intangibles like inspiration, customer experience, individual service, and brand recognition are the qualities that increase a brand’s competitiveness and overall success.
Although Fabletics is mostly known for its online membership model and strategy, the company’s success has led them to open more physical locations across the U.S., with greater expansion being envisioned for the future. The membership model has allowed Fabletics to capture a huge portion of the online activewear market by offering personalized service at half the price of its competitors. Fabletics’ offline stores piggyback on its online success by marketing using online analytics and its already vast group of members. One of its most successful advertising approaches utilizes the concept of “reverse showrooming”.
While offering personalized service is still at the hallmark of all Fabletics shops, in order to compete offline against already established brands, Fabletics has had to implement unique ways of marketing their products. As mentioned above, reverse showrooms are one such way it has been able to stand apart from its competition and offer its customers the fashion designs that inspire them to lead a healthy and active life.
Other offline retailers use their showrooms to sell their items, but Fabletics utilizes its showrooms to boost its online memberships. Most customers nowadays visit showrooms to try out items they like and then go online and purchase what they chose at a lesser price. This shopping method, however, does not tamper with Fabletics’ sales because their items are unique to the Fabletics brand and are already selling online at the lowest possible price.
Many of the customers who enter a Fabletics retail store are already members and those who are not become one after experiencing the personal service the company is already known for. Using their reverse showrooming model, Fabletics adds whatever is tried out in the store into their member’s online shopping cart so they can purchase it later at their owns leisure. It does not matter whether the customer buys in the store or online, only that they end up buying something they want at the price they want. Fabletics secures customer needs by using its membership data to stock their offline endeavors – a surefire way to keep customers satisfied and coming back for more.
Fabletics, an online subscription e-commerce retailer, specializes in women’s fashion athletic wear and accessories. The company’s unique contribution to women’s activewear is its personalized customer service that provides members items that are based upon and tailored to their personal preference and their particular lifestyle.
Founded in July 2013 by Don Resler, Adam Goldenberg, and actress Kate Hudson, Fabletics has grown by 35% each year since inception and is now valued well over $250 million.
Using a unique form of offline marketing, the company stocks its retail showrooms using online trends, and so is able to generate a large percentage of online and offline activewear customers simultaneously.
Since its launch on October 1, 2013, Fabletics has extended its product line to include swimsuits, dresses, and men’s activewear.