What happens when you combine intrusive business strategy and a team of passionate entrepreneurs from fashion industry? You end up with a rapidly growing fashion brand that is destined to conquer the market like Fabletics. Fabletics is an athleisure fashion brand from the USA that was created by Don Ressler, Adam Goldenberg and Kate Hudson in July 2013. The brand officially started its business in October 2013, and since then it has been shocking the fashion industry with its immense success regarding growth, market penetration, and profitability.
While Fabletics started its business with selling activewear or sportswear to female segment only, it gradually expanded its business to the male segments. Now, this brand sells trendy sportswear and accessories to a wide range customers across the USA and the world. The brand now has a strong and loyal fan base with millions of members, and it secured 25% in every year. With less than three years of its inception, it has become a $250 million brand and now it is competing with major online retail stores such as Amazon and others. Such an unprecedented success of Fabletics was only possible due to its innovative approach to brand promotion. The management behind Fabletics comes with diversified expertise in fashion and brand management in the fashion industry which has accelerated the growth of this brand. Fabletics has a strong focus on accessibility, people and culture and they aim to cater to their clients with what they need in the first place.
In addition to this, there are a number of reasons behind the success of Fabletics. Unlike other brands, Fabletics doesn’t bother from where their clients are buying their products. They are one of the few brands that promote reverse showrooming and try to engage the clients through an organic approach. In addition to that, their appealing membership program is also making a huge difference for Fabletics. The Fabletics membership is free, and people can become a member by filling a short questionnaire. In that questionnaire, they also need to fill in their personal details and fashion preferences that Fabletics will use in future.
Based on the customer data, Fabletics designs it sportswear collections and offers them through their online and real stores. In their membership, they provide a regular monthly offer to their clients that includes their new collection which is carefully selected based on the same customer data. As a member, the customers can either purchase the monthly offer or pay a charge of $49.99 which are converted into lifelong store credit. As the offer includes some amazing offers and discounts, the clients can’t resist making a purchase. Even if when they do not make any purchase, they still continue to ensure cash flow for Fabletics through the monthly charge. Hence, it has become a win-win situation for both. Each of their business strategies i.e. store location, fashion trend, promotion & campaigns is based on their customer data which helps this brand to become so famous.