Fabletics; Taking the Fight to Amazon

by JimHanson82 .

Enjoying any measure of success while a single company has control of 20% of the fashion eCommerce market is not easy. However, Fabletics is doing just that. In just three years, the company has grown its net worth to $250 million. Fabletics is using a unique subscription strategy to make sales. Their plan is quite simple; they mix convenience with the subscription mechanism, which has proven to be a potent combination.


The Old Ways Do Not Work


Traditionally, companies have relied on brand power to make sales. However, recent shocks in the economy mean that brand power alone is no longer enough. Consumers now want brands that can give them value for money without lowering quality. Besides that, factors such as gamification and exclusivity are becoming quite important in making sales.


Fabletics liken their model to Warby Parker or Apple, which are brands that succeeded by using unconventional tactics. Their strategy thus far seems quite successful. They plan to open more stores in the near future. This will be in addition to those that they already have in places such as Illinois, Florida, Hawaii, and California.


A Few Words for Those at the Helm of Fabletics


According to their General Manager, Fabletics has managed to modernize and reinvent the ‘high-value brand.’ It is something that they set out to do from the day they launched the company. The company offers high-end pieces combined with personalized service at half the price of the competition.


How Fabletics is Doing Things Differently


One of the ways the company is going against the current is by using a concept they have labeled ‘reverse showrooming.’ Through this model, the company is able to avoid the problem where people browse for clothes at a store but make purchases elsewhere. Their strategy entails having a great understanding of the local market. Thus, when a customer steps into the store, about 30-50% of them are already members of Fabletics. Besides that, they ensure that 25% of them become members inside the store. When a customer tries on an item, it is placed in their online cart. For Fabletics, there is no difference between the physical store and the online store.


Another strategy that Fabletics uses to pull ahead of the competition is the use of data. They understand the value of showing the right products to the right customer at the right time. As a result, they rely on a heavy data analysis to stock up each physical store. What is contained in the store is a reflection of the tastes expressed in that locality. Besides that, Fabletics has a creative team that keeps up with global fashion trends. With such a combination, customers are always assured of finding something they will like.


Fabletics can also attribute their success to a great people culture. One reason they have been so successful is that they have an authentic spokesperson. Kate Hudson has been a great representative of the brand. Consequently, people are able to put a face to the brand, which is always great for sales.