In recent news, an announcement of Fabletics taking on Amazon made headlines. Currently, Amazon controls 20% of the e-commerce market regarding fashion; however, Kate Hudson’s Fabletics are doing extraordinarily well with the growth of a $250 million business within three years. At Fabletics, subscribing to a line of trendy and fashionable activewear is a method that has proven to be aspirational because customers are encouraged to push themselves a little while also having convenience and membership.
Fabletics now has several stores located in Illinois, Hawaii, California, and Florida, and they are planning on adding more stores really soon. With them, there physical stores do things differently that contribute to their continual growth, and it includes the following:
They encourage reverse showrooming
- They encourage reverse showrooming– this works well for them because customers can research the products online and then head to the physical store to finish the purchase. Customers appreciate this, and thus, relationships build between the customers and Fabletics. As a result, 30 to 50% of customers walking through the store are current customers, and another 25% become members within the store.
Online data is at the main core of retail
- Online data is at the main core of retail- their brand is mainly built by combining the users’ preference data and global fashion trends. They use the preferences of online local data so that the stores will stock only items that are more appealing to customers. Also, the trends will change as the users’ data concerning their tastes change.
Focus on people, culture, and accessibility contributes to growth
- Focus on people, culture, and accessibility contributes to growth- as the company evolves, moves into new areas, and obtain new competitors, it is required to stay abreast of consumer education, customer experience, and the balance of lifestyle of customers. Also, maintaining quality products for great prices, creative and in-house media teams that scale widely based on data science, return on investment, and an authentic spokesperson contributes to continual growth.
These three factors that Fabletics utilize go hand in hand with the new type of showrooming. Viable consumer data and other focuses are derived mainly from showrooming as they stay connected with the changing trends and tastes of customers as well as the competition.
Found in July 2013 by Kate Hudson, Adam Goldenberg, and Don Ressler, Fabletics, www.fabletics.com, is an e-commerce online subscription for women’s activewear and accessories. The headquarters of this company is located in El Segundo, California. It is now rebranded to TechStyle Fashion Group, and it is the subsidiary of JustFab.