The fashion industry is one of the hardest industries to succeed in. There are thousands of companies marketing thousands of different designs are wears. To make things even harder, Amazon controls 20 percent of the fashion e-commerce market. Based on that evidence, it seemed like no one would be able to top Amazon.
That was until Kate Hudson’s ‘activewear’ line, Fabletics. As the world becomes more health-focused, ‘activewear’ is becoming more popular. Although Amazon sells activewear, Kate Hudson’s Fabletics is a part of JustFab and offers customers more than just attire. Fabletics uses a subscription mechanic which allows customers a more personal shopping experience.
Another progressive step for Fabletics is opening physical stores. While its online store is its main revenue stream, its physical stores offer items to new customers. Physical stores allow people to see what Fabletics has to offer in the real world. Currently, Fabletics has sixteen stores nationwide, and it’s planning to open more.
There are lots of companies that start out as an online store and eventually open physical stores. It seems only natural that once an online company has enough capital and success, it would bring its brand into the real world. What makes Fabletics so different from everyone else? How does Fabletics excel where others stall out?
One technique that Fabletics uses is “reverse showrooming.” The one obstacle that many businesses face today is showrooming. They showcase their best products but customers end up buying items from somewhere cheaper. Fabletics addressed this issue by introducing reverse showrooming.
Instead of just opening stores, Fabletics likes to build relationships with its customers. Fabletics uses store events to get to know the local markets and its members better. Since Fabletics uses a type of loyalty strategy; 30-50 percent of the people that come through the door are already members. When people see all the activity inside the store, an additional 25 percent of visitors become members after shopping around a bit.
Another Fabletics technique is using multiple sources of feedback data to stock its stores. While other companies base its stock items on spreadsheets, Fabletics bases its stock items more on the local customers. Although it does take digital data into consideration, it also knows that local customers are the ones buying from physical stores.
Other factors Fabletics takes into consideration are social media sentiment, store heat-mapping data, and some real-time sales data. While shopping is important, keep the brand’s traditional customer-based influence is more important. Fabletics is constantly running subtle tests to ensure that it’s up-to-date with the latest fashions that its customers will prefer.
The company is so successful, even popular reviewers give it a good review. One reviewer even admitted that she’d recommend Fabletics to her readers. The prices are about fair. The styles are amazing for the prices. It’s branded really well and offers services that other companies don’t. Fabletics even allows members to skip months without paying for membership.