Fabletics: Succeeding in an Amazon Controlled Environment

For a very long time, Amazon had monopolized the e-commerce industry controlling 20% of the market. However, Fabletics are slowly making their mark. Fabletics have changed the game by introducing a new model- the member subscription system. It may appear to be a simple premise, but it has given them a $250 million return on profits in three years.

 

A while back, the high valued brands were defined by their quality and the price of the products. Today, the two factors are not enough, and for one to succeed, they need to combine other marketing strategies. Customer experience, brand recognition, and gamification are the elements that Fabletics have used to build their clientele. It is the strategy that they use that has positioned Fabletics for success.

 

The Company’s membership model is what has enabled them to personalize their service. It is easy for them to provide the customers with what they want since they know what they need.

 

Fabletics uses three unique strategies to develop sales and enhance their clientele.

 

Reverse ‘showrooming.’

  • Reverse ‘showrooming.’

 

The customers’ desire for discounts is a serious impediment to the growth of the e-commerce fashion industry. The customers will browse for the items online and then buy them elsewhere at discounted prices. Most of the e-commerce businesses are being affected by the showrooming, but Fabletics have handled the challenge head on. They have done this by opening the pop-up stores. Most of the customers who visit the stores are members. Fabletics has also gained 25% of new members via these stores.

 

Maximized on the online data

  • Maximized on the online data

 

Retail is another form of service and being able to show the client the right content is what enhances the customer experience. Fabletics understand this factor, and that is why they use the data they collect to stock the stores. Most of the items that you will find in the store are what the customers have requested.

 

Establishing the balance between accessibility, consumer education, and experience

  • Establishing the balance between accessibility, consumer education, and experience

 

Fabletics has tried to establish a balance in the three important factors: lifestyle, consumer education, and experience. That is what has provided them with great success.

 

About Fabletics

 

Fabletics is an online subscription-based retail store that sells women activewear. Kate Hudson is the co-founder and also the face of the Company.

 

As a new member, you will be required to sign up for a new account and also fill out the form provided. Based on your preference, the team will send you an email with different fashion options every month. It is not mandatory for you to buy the products that are sent to you. However, you will have until the 5th of every month to make a decision. Failure to do so will result in a store credit of $49.

 

Fabletics has strived to offer the customers products of the best quality at affordable prices. That is why they have achieved the tremendous success.

 

The Company has also launched swimsuit products, dresses, and shoes. They also established a men activewear brand in 2015.