The Success of Fabletics
Fabletics is now taking over Amazon which is currently controlled by Amazon by 20 percent. It is not an easy task to succeed in fashion e-commerce market, but Fabletics has shown that is possible. The sportswear line has grown a business worth $250 million in a span of three years. Fabletics has a subscription mechanism that it uses to sell its products to its clients. Fabletics combines this mechanism with aspirational brands. They have been able to win the hearts of their customers. High-value brands were defined by quality and price of the services or goods in the past, but this combination is not strong enough to guarantee success or be competitive with the recent shift in economics. High value to the current customer is determined by things such as customer experience, last-mile service, gamification elements, brand recognition, and exclusive design.
The Fabletic’s strategy is similar to that of Apple and Warby Parker. Its positioning has been paying off for them since they plan to open more physical stores to add to the already existing 16 stores in places like Florida, Hawaii, California, and Illinois. Gregg Throgmartin is the General Manager of Fabletics. He says that the secret to Fabletic’s success is the formation of a reimagined and modern version of the high-value brand. He adds that the membership model of the company enables them to provide on-trend fashion and personalized service. They do this at half the price of their competitors. Gregg says that it is very easy to make your clients happy when you understand what they want and who they are.
Fabletics was founded in July 2013 by Kate Hudson, Don Ressler, and Adam Goldenberg. They launched the company officially on 1st October 2013. Fabletics launched an activewear line for men known as FL2 in March 2016. Fabletics has also been able to widen its inventory beyond sportswear by including swimsuits and dresses. Fabletics has acquired lots of press exposure due to its tactics of advertising including targeting Lululemon, their competitor, and the use of footage taken by Kate Hudson with her cell phone. Reports from Forbes state that fabletics increases its revenue by 35 percent every year. Fabletics uses pop-up stores to increase membership. The company stocks apparel in its stores based on the analytics of the company’s online trends.
Fabletics first opened its mortar and brick retail stores in September 2015 in malls that are operated and owned by Westfield and General Growth Properties Inc. The company hopes to open approximately 100 stores over the next five years. It is free to sign up as a member of Fabletics. VIP members get an email at the start of every month indicating the new looks. They can decide whether they will skip or shop. Those who choose to shop are charged $49.95 which later converts into a store credit without expiry. Fabletics requires its members to fill a survey about their lifestyle preferences and workout when registering. A stylist chooses outfits for every member based on their preferences at the beginning or every month.