Succeeding in fashion e-commerce when Amazon controls 20% of the sector is not easy. However, that is what Kate Hudson has managed to do. Her company, Fabletics, has grown its value to $250 million in just three years. The company has been able to ride the ‘activewear’ wave combined with a subscription mechanism to make sales.
In the past, high-value brands were defined by quality and the high prices of their clothes. However, in the current economic situation, that does not guarantee success. Instead, things like brand recognition, exclusive design, gamification, and last mile service are playing a significant role in the success of brands.
Thus far, Fabletics’ strategy has paid off. They plan to open physical outlets to add to their existing stores in places like Florida, Illinois, and California. According to the firm’s general manager, their success is attributed to their ability to reimagine a high-value brand.
The Reverse Showrooming Model
Among the secrets to the firm’s success is their reverse showrooming strategy. With the model, about 30 to 50 percent of all the people who walk into their store are already members. Besides that, the company ensures that about 25% of everyone who visits their stores leave as members. With this model, when a customer tries on a piece of clothing, it immediately goes into their online cart.
Another reason why Fabletics has been so successful is that they harness the power of data. They take care to guard the customer’s brand journey by stocking their physical stores with what people in the area want. They also use global trends, social media sentiments, and consumer preferences to stock their stores.
The company also focuses on people, culture, and accessibility to drive growth. Thus far, Fabletics has experienced growth of about 35% year on year. According to Corporate Marketing Officer of its parent company, TechStyle Fashion Group, growth has resulted from quality products that are offered at fair prices, a great creative team, and an official spokesperson.
Fabletics is among a new breed of companies that are data-aware and unafraid to take risks. Whether it is the fast purchase option or smart distribution, such companies are not without their challenges. In 2017, you cannot build a successful brand without thinking of a strategy to counter Amazon. However, companies such as Fabletics have figured this out.
Blogger Teri Hutcheon describes Fabletics as a fitness apparel company owned by Kate Hudson. If you join the VIP membership, you will get the first outfit at only $25. The best part about is that you are not obliged to pay for anything on months that you do not want to purchase any product. If you join the VIP membership, you will get a 2 or 3 piece outfit at $49 to $59 a month.
When you sign up, the company gives you a survey to discover your styles. After that, outfits will be picked for you each month.