Fabletics – Taking on Amazon

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.