A quarter of the fashion e-commerce market is owned by Amazon which makes it a very tough competitor. However, Kate Hudson’s Fabletics is giving Amazon a tough time. Fabletics has become a $250 million business during the last three years. Two things that brought popularity to Fabletics is subscription mechanic and active wear. The secret is to combine membership and customer’s favorite brand.
Not long ago, high-value brands were defined by their price and quality. Due to changes in the economy, these strategies will not last for long. Now other factors like exclusive design, customer experience, gamification elements, last-mile service, and brand recognition make the difference. Fabletics is becoming successful like Apple and Warby Parker due to its fashion brand membership. The company plans to inaugurate their sixteenth store soon. Currently, Fablectics has outlets in Hawaii, Illinois, Florida, and California.
Gregg Throgmartin, General Manager of Fabletics, said that he thinks from day one, Fabletics is working on a reimagined and modern ‘high-value brand‘. He said that Fabletic’s membership mode allows the company to offer on-trend fashion and personalized service at half the price of their competitors. People are easy to please when businesses know what they want and who they are.
The reason for the failure of other businesses is that people did not buy products from them after exploring their showrooms. People wanted to buy those things from shops where the prices were low. Fabletic’s strategy was totally the opposite. They changed browsing into a positive thing. The company decided to build relationships with customers instead of going to the pop-up store. They wanted people to rely on them. That is why they decided to use activities and events to know local markets better. As a result, half of the people entering their stores were already members and quarter of them would become members on the spot. When a customer tries an article of clothing, it goes into his shopping cart. Fabletics thinks that another part of the service is retail even if customers buy it from another place.
Fabletics makes sure that customers find the correct information on products both in digital and physical forms. It is customer psychology to like businesses that show the right information when people are exploring different brands. Tastes and trends keep changing; therefore, online data is helpful to decide what to keep at stores. Various sources like heat-mapping, local membership preferences, and real-time sales activity provide this information.
Distom Netral, SVP Operations Febletics, said that the importance of the increase in shipping is huge; however, building a brand requires global fashion trends and user preferences. He added that the company performs tricky tests and keep adding new ranges for success. Customer friendly strategy is helping Fabletics to grow despite many challenges.
Shawn Gold, Corporate Marketing Officer TechStyle Fashion Group, said that their brand is experiencing over thirty-five percent growth every year. The reasons for this high growth are an authentic spokesperson, excellent price, in-house media, good quality and creative teams. Fabletics is now growing in ten counties due to return on investment and data science.
SWball January 9, 2017