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Fabletics is an online retailer that sells women’s activewear. The company was founded by actress and noted fitness enthusiast Kate Hudson along with Techstyle Group, a company that has been in the online retail business for a number of years. It grew to being valued as a business worth $250 in it’s first three years and now has started opening retail stores selling their clothing in a number of cities across America.
As a business that relies upon subscriptions, Fabletics sends a box of clothing to its subscribers every month in exchange for a monthly payment. How Fabletics knows what to send you is due to the Lifestyle Quiz that each subscriber fills out. By completing this easy survey Fabletics is able to know what kind of clothing you like and what type of fashion sense you have. By taking the Lifestyle Quiz shoppers can make the website even more convenient than it already is and zero in on what types of activewear will appeal to them.
As Fabletics started out as an online brand they take a different approach when it comes to their retail stores than conventional retailers do. Most retailers fear “showrooming” which is the term for when someone shops in a physical store but then go online to buy what they saw in the store. Fabletics coined their new term “reverse showrooming” which is how many of their member’s shop, seeing something they like online and buying it in the store instead. In truth, Fabletics doesn’t care if someone buys clothing in the retail store or on the website as it’s all a sale to them.
It was in June 2017 that Kate Hudson announced the first collaboration of Fabletics. A new line of clothing is being introduced in their stores and online site that was created in a partnership with Demi Lovato, a pop superstar. When talking about the partnership, Lovato said that she loves the Fabletics clothing and what the company stands for. She likes that it’s an inclusive brand where women of all sizes, ages, and shape can find something that fits them and that they enjoy.
Fabletics was founded on the premise of offering women’s activewear that is not just fashionable but is also of good quality and, very importantly, is affordable to their members. At the time that company was established the brands in this space were very expensive and not terrible fashionable.
How many companies you know that are taking on retail giants like Amazon. For Fabletics, the fashion and women sportswear brand, Amazon is not a huge threat to its products anymore because the company has streamlined an innovative model that Amazon may love to replicate one day. Those who know Fabletics are aware that the company started mainly as a subscription based company that attracted a lot of attention by offering online deals to its members that were too good to pass away. Often these deals are half the price of the similar clothing brand of a competitor. As the subscription catalog continued to introduce more deals, the number of customers also skyrocketed.
However, Kate Hudson’s company, did not stop as it kept on innovating itself by announcing the opening of physical store fronts in several iconic locations throughout the United States. As if $250 Million sales were not enough in the first three years, the company has plans for 75 to 100 major store openings in the next three to five years.
The integration of online and offline channels is likely to suit the brand as it has loyal customers who would love to try clothing at a nearby store. The technique is not new as nearly 69 percent of Americans analyze offers online before going to the shop to buy it. However, few companies have used the reverse showroom concept to their advantage. In fact, it seems that Fabletics have nailed it because almost 25 percent to 50 percent of customers that walk in the Fabletics stores already know what they are going to buy. A majority of these customers are members who get the information and deals, online. Similarly, the company is taking advantage of the phenomenon by attracting hordes of walk-in customers who also like to become members. As such, nearly one fourth of walk-in customers become subscribers.
The innovation has succeeded because Fabletics also provides one-to-one personalized service to customers in the store. Numerous value-added services takes customer satisfaction to a whole new level. As customers buy their clothes or even try a new set of clothing, it automatically updates their online portal. The technology helps the management to provide future offers based on the history of shopping and customer preference. In the future, Fabletics may even try robots, which can deliver clothing in the changing room saving time and increasing customer satisfaction.
The combination of effective online marketing and the ability to offer customer a chance to try the new products before buying enables Fabletics to stay ahead of its competitors. In fact, the membership is free for everyone. The only catch is the $49.95 monthly fee that is charged if the customer does not buy anything within a calendar month. Despite the fee, members continue to rave about the great offers that Fabletics continue to bestow on its customers.