With Amazon controlling 20 percent of the fashion e-commerce industry, succeeding in the field is almost a pipe dream for any person. However, with such challenges, Kate Hudson’s Fabletics has managed to grow to a company worth $250 million in three years. What strategies is the company employing to ensure they survive in the industry? Fabletics sells quality activewear at fair prices. Historically, high value brands have been defined by quality and price. However, with the shift in economy, this combination is losing its prominence. To determine high value, the modern consumer pays attention to finer details such as customer care, last-mile service, brand recognition and exclusive design among many other factors. The company sells their products through a membership subscription plan. They have 16 physical stores in different locations, including Hawaii, Florida, Illinois, and California. They are also planning to open more stores this year.
Gregg Throgmartin, Fabletics’ general manager, said that their brand is succeeding in the market due to their membership model, which allows them to deliver personalized products and services to their clients. Additionally, the company strategizes on the element of positioning just like Apple and Warby Parker, which is paying off. The following factors make their physical stores unique.
- Reverse Show rooming
Most businesses are struggling to keep up with new entrepreneurial tactics. One of these strategies is show rooming where clients browse the products and services offered by a given store offline, but end up buying products elsewhere at a cheaper price. Fabletics has avoided the pop-up store model by ensuring that close to 50 percent of clients who walk to their stores are members and the other 25 percent register as members once they enter the store. Their retail strategy ensures that every item that a customer tries is included in his or her shopping carts.
- Less dependence on online data
As much they rely on online data, they stock their products not only according to the online preference, but also depending on local membership, social media trends and real time sales activities.
III. Focus on accessibility, people and culture
As Fabletics expand, they are venture into new territories and woo more clients. To this end, they have learnt to balance their lifestyle, customer experience, consumer education and culture. The company evolves to ensure that they deliver products that satisfy the utility of their clients. Their clear understanding of the modern consumer is evident in their smart distribution, innovative membership programs, and fast purchase options. This information was originally published on Forbes.
Fabletics is a fitness apparel company. It only operates on membership plan. Those who subscribe for VIP membership only spend $25 for their first outfit plus other discounts on la carte items. The main reason for membership is to ensure that clients get customized outfits of 2-3 pieces each month for $49-$59. Clients who opt to skip a month are not charged any fee. Upon joining the company, clients take a survey to determine the style and preferences of their workout outfits. These outfits include tanks, shorts, and carpris among others. Customers are assured of quality, value, ease of use, and style. Those who wish to join Fabletics should feel free to take the Lifestyle Quiz from Fabletics Website to find out which activewear is best for them. This information was originally mentioned on A Foodie Stays Fit’s website.