Fabletics’ Unique Business Model Gives The Company An Edge Over Competition

Building a successful online fashion business is no easy task in the modern world. Especially since foraging into the online retail business means taking on competitors like e-commerce giant, Amazon. Kate Hudson’s Fabletics has found an innovative way to be successful with both their online and physical stores. Fabletics uses a subscriber service to allow customers to buy online or in stores for a fraction of the cost compared to other high-end activewear brands. This convenience, in addition to fashion-forward styles, creates a pretty potent recipe for success.

 

Fabletic’s subscription model gives members a more personalized experience whether they shop online or in stores. By utilizing a reverse showroom tactic, it doesn’t matter whether customers buy online or in stores. In fact, when a customer tries something on in one of Fabletics’ retail stores it also goes into their online shopping cart. Where other businesses are hurt when a customer browses in-store but buys online for less, Fablectics wins either way.

 

Member data also allows Fabletics to tailor stores according to customer preferences. Since a large number of people visiting their stores are either already members or become members in-store, they can use local member data to stock trends that are more likely to please customers. Combining that data with point of sale information, heat-mapping data from stores and social media trends further allows the company to personalize their consumers’ retail shopping experience.

 

Fabletics faces big competition from other online retailers. Their innovative use of the reverse showroom technique allows them to be adaptable and receptive to changing trends in both fashions and how consumers shop in today’s world. With the steady growth the company has seen, it’s clear their business model gives them an edge.

 

Fabletics was founded in 2013 by Kate Hudson, Adam Goldenberg and Don Ressler as a subsidiary of JustFab, now know as TechStyle Fashion Group. The company began as an exclusively online retailer but has opened 16 stores as of last November. Members receive an e-mail every month advertising new styles. They have until the fifth of the month to decide whether they want to shop or skip the month. If a member does neither by the fifth, they’re charged $49.95, which goes onto their account as a credit which they can use for future purchases. Prices are substantially less than that of other high-end athletic wear companies’. The quality though is definitely comparable, providing a much more economic option for stylish workout clothes.

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