Fabletics has only been around a for a few years. In that short time, the company has grown to a worth of a quarter of a billion dollars. This is impressive enough before you look at the competition the company is up against. The fashion e-commerce market is dominated by the online mega-retailer, Amazon. In fact, the company controls 20% of the market.
Fabletics has carved out its share of the market by using a couple of different strategies. First, they provide their customers with a convenient shopping and purchasing experience. Of course, Amazon already does this. So, what is the real difference maker for Fabletics? The company sells a high-quality product that is tailored to speak to the individuality of customers via an ingenious business model.
Following in the footsteps of successful ventures in food and other industries, Fabletics sells its activewear via subscription-based membership online. This groundbreaking method, along with the celebrity appeal of the company’s CEO, Kate Hudson, is the gas that fuels the Fabletics engine. Other companies in the e-commerce fashion industry have followed suit and carved their own niché out, but now Fabletics is taking its company in an entirely new and unforeseen direction.
Most online retailers are trying to avoid physical storefronts like the plague, but this isn’t the case with Fabletics. So far, it has 16 physical retail locations nationwide and there are more coming in the near future. The company is seeing success in this market where others aren’t because of a forward-thinking approach to retail. The following are two ways Fabletics has created retail success.
The Fight Against “Showrooming” – Showrooming is a shopping phenomenon in which customers visit a retail store, find the clothing they want, and then purchase it online at a lower price. It’s hard to fault them for doing this, but Fabletics has created a strategy to help called the reverse showroom.
Over half of the shoppers in a Fabletics store are either members or soon-to-be members. When they shop in a retail location, they place items that they like in the store into their online shopping cart and purchase them whenever they like. This prevents customers from purchasing similar products somewhere else.
Localized Data – The activewear company takes online shopping data and applies trends to how it stocks it shelves on a local level. The offerings in each store are tailored locally, making sure nothing is wasted when it comes to stock. These are the two most important ways that Fabletics is changing the way fashion companies do retail.
Fabletics works with each member individually to create curated outfits for them and their workout needs. Then, the members can get the items at a steep discount. If they don’t want to buy anything that month, there is no charge. The lack of a membership fee is the primary way that the company draws new customers to shop with them and stay with them. If you are going to purchase activewear from Fabletics, there is no reason not to become a VIP member to add to your savings.
It is quite impossible to create an e-commerce fashion brand today and expect it to be successful. There are big competitors like Amazon that one has to take down. There is also a big wave of upcoming e-commerce companies. However, companies like Fabletics have defined themselves by their exclusive products, data science, enterprise technology and creative use of social media. The correct use of all these platforms has resulted in the success of Fabletics.
Fabletics primary business model focuses on an implementable strategy. Quality and price have always defined traditional flagship products. The recent change in financial data has seen a shift in the markets. Price and quality no longer guarantee business success. Instead, customer experience tops the list. Companies that want to become highly successful have to focus on brand recognition, personalized customer experience, and exclusive product design. Fabletics has made good use of this strategy, and the result is a highly successful brand.
Fabletics is a lot like Amazon, Apple and Warby Parker. The company’s business model focuses on fashion membership as its core brand strategy. The company tries to gain a bigger brand recognition as it expands to other physical locations. Fabletics has expanded to other areas such as Florida, Illinois, Hawaii, and California. The main secret behind Fabletics’ success is their ability to build anticipated high-quality brands. Its membership business model has presented a personalized fashion at half the price of traditional markets. Fabletics has made good use of the extensive market data to create a winning formula.
Many business that focus on e-commerce fail due showrooming. Customers will browse through the online sales and ultimately purchase cheaper items in different places. Fabletics changed this business model by first focusing on discounts. The membership program performed by the firm allows members to stay with Fabletics for long. Most members that shop with Fabletics are willing members that pay for the membership fee. They instantly get discounts when they shop for items at any price.
JustFab Inc. is the parent company of Fabletics. JustFab was recently ranked position 98 in the Top 500 retailer guide. The company has several plans to expand to other retail locations. The company has since opened a new location in the Mall of America. Fabletics has become highly successful. The company received $250 million in sales for the year 2016. In a recent interview, the group leader released information about the company’s strategy to open new stores. Although he did not give information on the exact location, he offered a glimpse to areas his team seem fit.
Fabletics marketing strategy has been through online data received by the company from malls and competitor data. The company makes use of mega shopping areas and installs a new business. For instance, the Mall of America receives close to 40 million buyers every year. Fabletics has built stores in these areas to get the large number of customers. Fabletics focuses on a simple membership model to get and retain customers. Regular clients who join the VIP membership get discounts for their monthly collection.