Fabletics is a company founded by Kate Hudson. Fabletics is a business that has grown considerably over the course of three years. It is now worth over $250 million and it is expected to exceed beyond that. What sets Fabletics apart from other companies is their subscription base and reverse showrooming technique. Traditional, high value brands was defined by price and quality. But today, high value brands are defined differently. What makes high value items is the customer experience, recognition of the brand, exclusive designs.
The subscription service that Fabletics uses helps the company personalize the experience of every customer because they get to know what the consumer wants and who they are. Fabletics also have physical stores and their success is based on three methods. The first one is reverse showrooming. Browsing is no longer viewed as negative. It is a positive experience both online and in store. Close to 50% of consumers that walk through a Fabletics store doors is already a member. And about 25% of consumers who aren’t members become members before they leave the store. Anytime a consumer tries on an outfit in Fabletics, it automatically goes into their shopping cart. It doesn’t matter if they buy it in store or offline.
The second method they incorporate is online data. While they don’t let the data determine the success of the store, the data gives important findings on what consumers want to see online and in the physical store. The physical stores stay stocked with items that are trending with the consumers. Taste changes and keeping up with the differential shifts in trends is imperative in a successful business.
The third method they rely on is growth, consumers, and their cultures. Currently the company’s growth rate is 35% annually. Growth within the company is what helps keep Fabletics items at an affordable price. They are competing with Amazon who currently runs about 20% of the e-commerce trade. But with the growing popularity with Fabletics, it looks like they will surpass Amazon soon.
Athleisure apparel is a growing trend that is still going strong. Fabletics has cashed in on this growing trend because they wanted to make the clothing affordable to everyone from all walks of life. She says the company success has evolved from these five tips. Identify marketing opportunities, stay hands on within the company, rely on data to make good decisions, get inspired, and take risk but also believe in yourself.