Today, Amazon has the largest share in the fashion e-commerce market. The company controls a 20 percent share alone. It is, therefore, evident that succeeding in the fashion industry on an online platform is no easy job. However, Kate Hudson’s Fabletics business has stormed the market and grown to a net worth of 250 million dollars in three years. The most basic question would be how did Fabletics do it? Well, the company uses an online platform where customers can subscribe to get their brands on a monthly subscription. Mixing the uniqueness with convenience and membership in the company’s platform ensures you have customers for life.
In the recent past, high-value brands have been defined by the quality and price of their goods. Today, considering the state of the economy, the combination of price and quality no longer gives the competitive edge as in the recent past. To achieve success and guarantee a large customer base, investing in customer satisfaction and experience, exclusive design, and gamification is proving to be among other combination that influences the modern customer.
As of today, Fabletics has over sixteen stores that are open in Hawaii, Illinois, Florida and California just to mention but a few. With the likes of Apple and Warby Parker, Fabletics strategy and positioning have set them to succeed in the fashion membership brand.
When asked the secret to their success, Gregg Thogmartin, the general manager of Fabletics says it’s about building a modern and re-imagined brand. He stated that their membership platform allows the company to offer personalized services to each and every customer. The model has also enabled the company to provide a customized brand to its clients at almost half the price of their competitors. Thogmartin said that it’s easier to achieve customer satisfaction when you have an idea of what their preferences are and what they need.
To achieve, Fabletics have employed three ways. They have adopted and encouraged reverse showrooming. As a result of reverse showrooming, 30-50 percent of the people who walk in their stores are already members and 25 percent subscribe from the stores. By use of online data, Fabletics mostly stocks a larger percentage of the designs preferred by the local members. Moreover, the use of social media sentiment, store heat mapping, and real-time sale contribute to stocking behaviors of the company. The company has focused on accessibility, people and culture to ensure they meet the demands of their customers. Consequently, it has resulted in growth and provided a competitive edge in the market.
The idea behind the company was to satisfy a gap in the active wear marketplace. Extensive research showed that all the Luxury brands didn’t offer quality gear at an accessible price range. With this in mind, the three joined forces to create a brand that has grown exponentially since its inception in 2013.