Kate Hudson’s apparel clothing company Fabletics recently emerged as a success in the fashion industry. This is a very significant achievement especially with big players such as Amazon who control a fifth of the e-commerce market out there. Fabletics is now valued at 250 million dollars in just three years. Fabletics winning formula is its membership strategy coupled with convenience and prestige. Fabletics focuses on active-wear, that is, clothes that are to be worn for outdoor and sporting activities. Their primary target market is the ladies. Fabletics also offers sporting accessories such as water bottles, headbands, and bags.
According to Fabletics’ General Manager, Gregg Throgmartin, the company’s success goes down to the desire of the team to build and re-imagine a ‘high-value brand’ from the get-go. In recent times, the term ‘high-value’ has taken a whole different meaning. As compared to the past, where it meant something pricey and quality, modern consumers include other determiners that they use to rate a brand. These include customer experience, last-mile service, brand recognition, gamification elements and exclusive design.
Fabletics are planning to add more stores adding to the sixteen that they have at the moment. Their success is as a result of the strategies they employ and their positioning. According to Gregg, Fabletics’ membership model allows them to customize their services to each of their clients and also helps them sell their clothing for half the price of their competitors. He says that knowing what consumers want and customizing it to their preferences makes the whole process easier.
A lot of retail businesses have been affected by showrooming. This is where potential clients browse the store offline then head off to buy cheaper products elsewhere. Since Fabletics started out in a unique way, they have been able to beat this through encouraging ‘reverse showrooming.’ The reverse of showrooming is where clients browse for products that they would like online and then buy them at the designated store. Their effective membership strategy thus enables them to bond and create strong relationships with clients, be relied on and analyze the local market better by hosting events and carrying out other activities. Because of this, close to half of the people that walk in a Fabletics store are already members. A quarter of the remaining individuals who are not subscribed become members while they are inside.
Other techniques that have borne fruit for Fabletics understand the different ways to preserve a customer’s brand journey, understanding customers and offering an all-round customer experience. Fabletics stocks its stores with items that will appeal to clients and these are gotten from statistical data from the internet.
Since it started, Fabletics has been getting positive and favorable reviews. One reviewer commended the brand for the offer on VIP clients which is getting an entire outfit at 25 dollars. Another reviewer praised Fabletics for its wide range of stylish and trendy sportswear. Fabletics’ VIP program has received a lot of good feedback with many people enjoying the free shipping that it comes with.