Fabletics: Changing the Rules of the Game

In a world where Amazon controls 20% of the e-commerce business, it is next to impossible to conquer or to break even. To be able to defeat the giant, you need to have strategy, tenacity and be audacious and that is what Fabletics have brought to the field.

Fabletics, founded in 2013, uses the subscription method to sell their clothes. The premise may appear easy, but that is what has given them success. In the last three years, the Company has increased their sales to $250 million. Their membership plan has allowed them to offer personalized services to their customers and that is they keep coming back for more.

Fabletics has positioned itself to achieve success by implementing three different strategies:

  • Maximizing on ‘reverse showrooming.’

Most people do not use the online stores to buy their products. They will browse and get an idea of what they want and then find physical stores to purchase the items at a discount. This is a challenge that has affected the e-commerce market for a long time. However, Fabletics have nipped the problem in the bud by opening pop-up stores. Their customers now have stores that they can use to purchase the clothing that they want. 50% of the people who go to the online stores are members.

  • Using the online data

When you become a member of Fabletics, you will be required to fill in a short form indicating your fashion preference. The team will then use the information to stock the pop-up stores. The Company has managed to promote customer satisfaction.

  • They have combined culture and accessibility

Even though the Company has experienced challenges, they have managed to establish a balance between the culture, customer experience and, education.

Fabletics has proven to be a strong contender in the Fashion industry by providing the customers a unique and exclusive brand.

About Fabletics

Kate Hudson is the co-founder and the brand ambassador of the Company. Fabletics is a Fashion Company that focuses on the active wear. They initially started off as an online retail store. However, due to the increase of their customers, they opened up pop-up stores.

Fabletics uses a different mechanism than the other online stores. Their service is exclusively subscription-based. For you to enjoy the benefits of the Company, you need to become a VIP member. As mentioned above, you will have to provide them with information that will help them provide you with personalized service. Every month, you will receive an email with the latest offers. You will then have between 1st and 5th of that month to make a decision. If you don’t find anything that you like, you can skip the offer. Keep in mind that when you fail to take action a credit of $ 49 will be added to your account.

Their products are made of high-quality material, and they are cost effective. They also provide you with various styles and versions that you can choose.

Why Fabletics is so successful in athleisure market

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.