Fabletics Is Strategizing On Taking Amazon
Fashion e-commerce is growing at a faster rate with many startups joining in to have a share of the pie. However, the market is dominated by mega companies such as Amazon, which controls over 20 percent of the market. This domineering effect does not scare Kate Hudson’s Fabletics. The company, which has grown from a small business into an entity worth $250 million in just three years, believes that it has the right business strategy needed to take on Amazon and reduce its influence in the market.
The company is spearheading the ‘activewear’ movement. The campaign is meant to make the attires fashionable and widely accepted in the society. Fabletics is using a subscription mechanic to sell this campaign. The strategy involves providing clients with fashionable and trendy activewear at a fraction of the cost in traditional stores. The strategy has been successful as the company has a broad customer base. Fabletics also focuses on ensuring that its brand is inspirational, convenient, and serves the client’s needs.
The approach employed by the company is in contrast to the traditional approach where customers usually decide on what to buy based on price and quality. In the modern market, these two factors alone cannot guarantee a business success. The new approach is to have a mix of factors such as customer experience, last-mile service, exclusive design, brand recognition, and gamification. Fabletics is focusing its business on satisfying these modern business requirements.
The implementation of the above strategies has seen Fabletics likening themselves to Apple and Warby. The strategies have been used successfully by the two brands. They are pushing Fabletics into success. Fabletics has also adopted a physical store strategy that closely reflects those of Apple Stores.
According to the company’ General Manager, Gregg Throgmartin, the success of Fabletics can be attributed to its commitment to build a modern and ‘high-value brand’ from its first day of operation. The company has also invested heavily in ensuring that its clients enjoy personalized services and fashion products that are both trendy and affordable. He notes that by studying its customers, the company has been able to understand them more, thus making it easier to satisfy their utility.
Fabletics has also approached the business of physical stores differently. It understands the growing ‘reverse showrooming’ that has negatively affected physical stores. Most people usually browse items offline but buy them online. The company has integrated its physical stores with their online platform. The system adds the items that the client tries to his or her online shopping cart. The result has been increased sales for the company
Fabletic is an online subscription retailer. In the past, the company dealt mainly with women sportswear. However, recently it introduced men sportswear. Fabletics was founded by Kate Hudson and owners of JustFab in 2013. It is for this reason that it is highly associated with JustFab. The company has also launched a number of physical stores in selected American states.