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.