Fabletics; Going Toe to Toe With Amazon

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Succeeding in an industry where a single retailer controls 20% of the market cannot be easy. However, Fabletics is proving all the naysayers wrong. It has managed to grow into a brand worth more than $250 million in spite of tough competition. It has done this by being able to exploit the ‘activewear’ movement and provide customers with what they want. Besides that, it uses a subscription model that encourages more sales to its customers.

The old way of doing business involved high-end brands that were defined by expensive attires and quality. However, that method of doing business just does not work in the modern era. In a time of economic downturn, pragmatism is quite important. For a company to be considered valuable, it must concentrate on things such as customer experience, gamification, exclusive design, last-mile service, and brand recognition to win over customers. Fabletics has managed to open physical stores in places such as Florida, Hawaii, Illinois, and California.

According to Gregg Throgmartin, the General Manager of Fabletics thinks that the company’s ability to re-imagine what a modern high-end clothing brand is what has kept them ahead. Besides that, he says the membership model designed by Fabletics has allowed them to offer on-trend fashion pieces at half the price of their competitors.

 

Reverse Show Rooming is working for Fabletics

 

Unlike its competitors who are being destroyed by showrooming, it is working for Fabletics. In other places, people browse for items but end up purchasing cheap knockoffs elsewhere. Fabletics has managed to re-engineer the model so that it leads to high conversion. When a customer walks into a Fabletics store, 30-50% of the time, they are already a member. Additionally, the company has a strategy to ensure that another 25% who walk out leave as members. When a customer is shopping for an item at the store, it is added to their online cart. Fabletics has developed a model where the online store and the physical store have been merged.

 

Online Data Combined with Culture is Spurring Growth

 

Fabletics understands the value of showing the right content to the right people. Thus, Fabletics collects data on its customers and stocks its stores with the corresponding clothes. However, that is not the only way Fabletics grows its brand. It also uses people such as Kate Hudson, to give the brand a human face.

 

About Fabletics

 

Fabletics specializes in the sale of fitness wear. The company provides a monthly membership model to its customers. When you join as a VIP member, your first outfit will only cost you $25. Additionally, you qualify for some fine discounts. Each month you will have to pay between $49-59 a month to get a 2-3 piece outfit for you.

Upon signing up, you are given a survey. The company wants to find out details about you such as the styles of outfits that you like, and your types of workouts. With that data, the company will pick outfits for you at the start of every month. On months when you do not have the cash, you will not be charged anything.

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