Currently, almost 20 percent of e-commerce fashion market is controlled by Amazon making it virtually impossible to succeed in fashion. However, Kate Hudson’s Fabletics has changed this narrative. In just three years, Kate Hudson has managed to grow her $250 million worth Fabletics business. It relies on a subscription mechanism to sell clothes to customers. Historically, high-value brands have been defined by the quality of the services or goods and price. However, the recent change in economics shows that this combination doesn’t guarantee success anymore or isn’t competitive enough.
Fabletics does its physical stores different from competitors hence its success. For instance, unlike its counterparts, Fabletics promotes ‘reverse showrooming.’ With showrooming, potential customers browse offline only to purchase items at lower prices elsewhere. Thanks to the unique way Fabletics started out, it has managed to reverse the model. Rather than harmful browsing, they have successfully changed browsing to positive. They could have taken the route of pop-up, but opted for a strategy that makes them dependable, know the local markets better and build strong relationships through events. Thanks to their strategy, almost 50 percent of the customers who walk through their doors are members already. Additionally, an additional 25 percent are turned to members in the store. When customers are shopping and happen to try some clothes, items are added to their shopping cart online.
Fabletics is very much aware that physically and digitally displaying the right content is important and ensures that the brand journey of the customer isn’t destroyed. Relying on online local data preferences implies that physical stores stock items that have a higher likelihood to appeal customers and can be easily tweaked with tastes and trends changes. Moreover, stores are only stocked in relation to the various inputs such as social media sentiments, membership preferences, sales activity in real-time, and store heat mapping data.
The growth of Fabletics has had its own share of challenges. However, it has progressively ventured into new territories with completely new competitors. It’s widespread consumer education, the balance of lifestyle, and customer experience appears to be yielding fruits. According to its Corporate Marketing Officer, Shawn Gold, the brand has grown successfully by 35 percent in just one year. It is difficult to build a fashion brand without having a well-defined mechanism to compete with Amazon. Fabletics is defining itself using enterprise technology, exclusive product, and data science.
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