Succeeding in an industry where a multinational holds a 20% stake may seem like an insurmountable task. Nonetheless, Kate Hudson’s Fabletics has literally managed to compete satisfactorily with Amazon in the fashion ecommerce market. In less than three years, the retailer has gained an estimated market value of $250 million. Fabletics has been part and parcel of the burgeoning activewear movement. Its subscription model in particular, has helped it carve a niche for itself besides rising above competition.
The Subscription Model
Fabletics pioneered a subscription model, which has enabled it to conveniently sell fashion items. The idea behind this model is surprisingly simple. Typically, clients love clothing brands that are inspirational, and suit their preferences. The company mixes this with membership and convenience, which results in a powerful combination.
Initially, high value brands were defined by quality and the price of goods and services. However, there has been a drastic shift in recent years. The historical determinants of high value are no longer sufficient to guarantee brand success and to be competitive in the market. Instead, previously unheard of concepts such as customer experience, exclusive design, gamification, brand design, and last mile service have taken precedence. Modern customers are considering these elements ahead of everything else.
Drawing Comparisons with Major Brands
Fabletics strategy has been compared to that of major brands such as Warby Parker and Apple. Its positioning is already paying off because the brand has been opening physical stores to reinforce its online market. At the moment, it has sixteen locations in California, Hawaii, Illinois, and Florida.
Fabletics’ General Manager Gregg Throgmartin points out that the secret to the company’s success has been its dedication towards creating a reimagined description of high value brand right from its formation. He adds that the membership model has allowed the company to offer its customers highly personalized services, which are unparalleled in in entire market. Fabletics luxury brands to its clients for up to half the price of its competitors. This has made it popular among fashion lovers all the more.
Why Fabletics’ Physical Outlets are Different
Unlike other fashion retailers, Fabletics emboldens the idea of reverse show rooming in its operations. This concept started being encouraged after the realization that most clients search for items offline but end up buying them at affordable rates elsewhere.
In this regard, Fabletics came up with a strategy that promotes a positive shopping experience. Whenever subscribers try a clothing item for instance, it is automatically registered in their shopping cart. This way, customers can easily identify that particular item when they feel like purchasing it.
Brief Notes about Fabletics
The online fashion company was established in 2011 by Adam Goldenberg and Don Ressler. The longstanding business partners had always envisioned creating an online platform that would allow customers to shop for clothing items at their own convenience.
The company’s stature has grown owing to the fact that it retails high value items at affordable prices. Items are sent to clients every month based on their inclinations. Upon acceptance, the cost of the items is spontaneously deducted from clients’ credit cards.