How Fabletics is Able to Compete with Amazon

Starting a business in the Fashion industry is proving to be a challenging venture, given the way Amazon has managed to capture and control over 30% of the industrial market. 70% might sound like a huge room for a company to grow, but given the level of competition from well-established brands and other new and emerging brand, that number seems insignificant.

That has not been the case for Fabletics. The brand which was founded three years ago has managed to take the market aggressively. The brand has grown to a $250 million business in that short period. This growth has been influenced by their business model that has proven to be effective. With the growing market demand and significant movement of ‘activewear,’ Fabletics have found the subscription-based model of operations to be paying off.

Unlike before where the value of the brand was determined by high prices and good quality, recent changes in the economy have rendered these determinants unreliable. Customer experience and preference, as well as brand recognition, are the primary drivers in determining the value of a brand.

In just three years, Fabletics has managed to open sixteen physical stores and are planning to open more across the U.S. Many business experts have questioned the reason behind this sudden growth. General Manager of Fabletics, Gregg Throgmartin opened up about a secret and some of the business models that have allowed Fabletics to thrive.

He credits the ‘Membership’ model as the leading growth influence, as Fabletics can deliver personalized choices at a reduced price compared to their competitors. He stresses that, by allowing users to ‘define’ themselves, it makes it easier to deliver services that are specifically tailored to fit them.

On matters relating to physical store’s success, he pointed out three main strategies that the brand has adopted;

  1. Introduction of ‘reverse showrooms

Unlike other businesses who record massive losses by using showrooms, where consumers browse offline and end up making purchases elsewhere for a lower price, Fabletics have managed to reverse the process. He explained that nearly 30%-50% of all clients who enter these stores are already members. The stores are also able to convert another 25% into members. Once a customer purchases something on the retail store, it reflects on their shopping cart online.

  1. Using Customer Data

The use of data from users has helped them stock the stores with products that are appealing to the client. This information is acquired by using data from the clients’ social media sentiments, local members’ preferences as well as real-time sales activity.

 

  1. Focus on the Clients and Culture

Fabletics understands that by being focused on the customers and determining their needs and identifying a change in culture can have a positive impact on the growth of the business. According to Corporate Marketing Officer Shawn Gold of TechStyle Fashion Group, (parent company of Fabletics), he attributes the growth to having a quality product at a great price and cooperation of everyone in the brand.

Fabletics have received quite a positive response from the market. Most of the clients have registered satisfaction and above satisfaction for the products and services. Some of the areas that recorded high satisfaction rates include the quality, price, and style.

Many people also were impressed with the survey that you have to take regarding your workout preferences. The information you submit is used to recommend the products that might suit you.

Weekend #workout plan inspired by @gingerressler's high-power moves ????

A video posted by @fabletics on

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