With Amazon currently in control of over 20 percent of the fashion e-commerce market, making it in the sector is no mean feat. However, Kate Hudson’s Fabletics beat the odds by successfully growing an over 250 million dollars business in just three years from its launch. Fabletics is a brand that can be termed as an aspirational brand complemented by the convenience of an excellent membership; this brings about a powerful combination that may be the reason behind the company’s remarkable performance.
Fabletics has been able to keep up with the shift in economics that makes things like the price and quality of the product or service no longer enough to be competitive and relevant. They have instead adopted strategies such as last-mile services, ultimate customer experience, exclusive design as well as brand recognition, factors that are of high value to the modern consumer. Fabletics has adopted a subscription strategy that has likened to names such as Apple and Warby Parker. Their strategy and positioning have so far paid off, putting up brick and mortar stores in locations such as Illinois, Hawaii, and Florida among others.
Asked about the secret behind their success, the company’s General Manager said that they were focused on creating a modern and an innovative top-class value brand right from the word go. With their exclusive membership model, Fabletics has successfully offered customized and stylish products at a very affordable price. Another central factor to the success of Fabletics is their overly successful use of Reverse Show rooming.
Reverse showrooming has proved to be hectic for most e-commerce product and services providers, but not Fabletics. Fabletics has been able to utilize what would have been otherwise a setback in their business to make it even bigger. Reverse showrooming is mostly a killer for online businesses because the customers tend to browse online for their products only to buy them elsewhere. However, Fabletics has turned this browsing to a plus for them. They have integrated their client’s offline activities with their online Fabletics account. Due to this, a customer who purchases anything on Fabletics’ Brick and Mortar stores haves the transaction reflect on their online account. This has led to a 25 percent of Fabletics customers joining them in brick and mortar locations. According to Fabletics, reverse showrooming is a strategy that has, in fact, helped them to build stronger relationships with their clients, which further enhances the quality of their services.
Fabletics was founded in late 2013. This was after JustFab Inc. co-CEO joined hands with Kate Hudson to cater for the market niche they saw in the activewear market. Since their founding, Fabletics has continued to make remarkable steps in the industry. In 2014, they expanded their market to serve the UK, Germany, and France and later made it into the Canadian market the same year. They also launched their men’s line FL2 in 2015 and expanded their market to Spain and the Netherlands.