Focus on How Fabletics Has Gained Success Using the Reverse Showroom Technique
Amazon controls 20% of the e-commerce market in fashion. It is therefore no easy feat for another company to enjoy success in this field. However, Kate Hudson’s Fabletics has managed to do just that having grown a $250 million worth business in just three years. Fabletics, which is a part of the budding ‘activewear’ movement, relies on a subscription mechanic in selling its clothing to its clientele. The company uses a simple premise where customers love brands that are both aspirational and give them an extra push. When these two aspects are combined with membership and convenience, the result is a powerful combination.
Historically, high cost brands were defined by the quality and price of their goods and services. However, the market today has witnessed a shift in economics meaning that this previous combination is not enough to guarantee success or remain competitive. This shift has made things like customer experience, last-mile service, exclusive design, gamification elements and brand recognition become the new determinants of what a high-value brand is to the modern consumers. Fabletics likens itself to Warby Parker and Apple and its positioning and strategy are paying off as the brand is set to open up additional stores. This will increase the number of Fabletics stores from the current 16 based in areas like California, Hawaii, Florida and Illinois.
What is Fabletic’s Secret to Success?
According to Gregg Throgmartin, the general manager of Fabletics, the secret behind the brand’s success was its strategy to build a reimagined and contemporary version of what a high-value brand is from the onset. He added that the membership model it relies on helps it to offer clients with on-trend fashion and personalized service at a price that is half of what is charged by the competition. Gregg states that it is a lot easier to ensure customers are happy when you know them as well as their preferences.
How Fabletics Uses Reverse Showrooming Technique
A lot of other fashion brands are bearing the blunt of showrooming where potential customers browse offline and then proceed to buy their items at lower prices elsewhere. Fabletics has not been affected as it managed to reverse this model from the onset. Fabletics relies on the relationships it builds to knowing more about the local markets. About 30-50% of all people entering Fabletics stores are members, and a further 25% get converted while in the store. Whenever a customer goes shopping and tries any clothing, the same is added to their online shopping cart as well.
Fabletics is a company dealing with fitness apparel and it is owned by Kate Hudson. It operates on a monthly membership arrangement. When a new VIP member joins, they can buy their first outfit at only $25 and get discounts on other items. Joining as a VIP Member has its perks as every month you get a customized outfit picked just for you. It is possible to get 2-3 piece outfits for $49-$59. It is important to take the lifestyle quiz soon after joining on the type of workouts you do and the styles of outfits you prefer e.g. carpris, tanks, shorts etc. Fabletics thrives on style, quality, customer service, ease of use and value.