Fabletics is an on online subscription brand that deals with women wear including sportswear and accessories. Fabletics started in 2013 by Kate Hudson, Adam Goldenberg, and Don Ressler. Later in 2015, they launched FL2, which is men’s activewear line with Olive Hudson. The firm expanded and started dealing with dresses and swimsuits. There are sixteen storerooms, and they are working on adding two more this year.
The company has developed fast over the years due to their unique advertising tactics. Such tactics include using footage shot by Kate Hudson using her cell phone and targeting competitors. Fabletics realized an increment 35% in revenues, which adds up to $250 million over the years.
Fabletics competes with retail giant Amazon, which controls 20% of the fashion industry. Fabletics is thinking differently to fight the old and new forces in the fashion market. The company have come up with unique ways to increase its gains and will later take on Amazon. The firm uses subscription method to sell its clothes such that each member completes a survey about their lifestyle and fashion preferences, and at the beginning of each month, they design personalized clothes for each member according to her preference.
In the previous years, people defined brand value through its price and quality, but things have changed. Nowadays, customers’ experience, last mile service, brand recognition and exclusive design form the backbone of brand valuation. The firm is familiar with its subscribed customers, and they can sell them clothes at a price lower than their competitors sell to keep customers happy. This method helps them maintain their clients.
Fabletics have reversed the rule where people browse for items, but on finding them expensive, end up buying them elsewhere at a lower price. With them, one has to make a subscription to check their clothes. This strategy enables them create positive relationships with their clients, know the local markets better and be reliable. They ensure that 50% of people who go to their stores for shopping are already members and another 25% become members after coming to the stores.
Fabletics knows that the best way to keep customers on the brand journey is by showing the right items both online and in the physical stores. They only stock clothes that are appealing to the customers, and this can be improved as tastes and trends change. They keep clothes based on social media sentiments, local members’ preference, store heat-mapping and overall fashion trends. They believe that branding combines user preference data and global fashion trends.
The growth of the firm is all about selling high-quality products at a relatively low price. Fabletics is among the fastest growing companies with a positive attitude, good relationship and great understanding of the new consumer. All firms have challenges from time to time and Fabletics is no exception. However, they have done an excellent job in understanding the physical retail experience. They highly embrace the new showrooming, and with this, they are doing their best in offering the best quality services to their clients, whether online or offline.
Before starting a fashion shop, one must know how to compete with other brands like Amazon. Fabletics has figured that out and has come up with exclusive products and different advertising tactics to help them compete with Amazon.