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

Kate Hudson’s Fabletics Positioned to Battle Amazon

The reason that so many clothing companies are unable to make serious money is because there are thousands of them all fighting for the same customer. To make matters worse, you have Amazon sitting at the top of the fashion e-commerce market making 20 percent of all the sales each year. Even with all that competition, Kate Hudson’s Fabletics has appeared to break out of that pack and is making a serious charge for Amazon. In a little under three years, Kate Hudson’s Fabletics has already sold over $250 million of their unique women’s apparel.

 

To get a better understanding what caused the rise is sales in such a short time, we ask Hudson directly to talk about her athleisure brand. Hudson will tell you that the success is in direct relation to the reverse showrooming sales technique and the abundance of membership perks she offers her customers. Take a drive to the malls and look what is really happening inside any of the Fabletics retail stores. Here you will discover a unique shopping experience unlike other clothing shops. There are women taking the Fabletics lifestyle quiz, trying on all the workout apparel, and browsing racks for new releases of active-wear too.

 

To be able to compete with Amazon, you have to set yourself apart in this competitive fashion e-commerce market. That is exactly what Kate Hudson’s Fabletics is doing. Each time a loyal customer is trying on clothing at the retail store, it will be uploaded to their online account. What this means is the next time that they log into the Fabletics store, all those pieces are in the e-cart so they can simply continue shopping exactly where they left off. Since you know how the pieces or workout apparel fit, you are not going to be hesitant to buy online because of sizing issues.

 

Kate Hudson’s Fabletics rewards their customers with free shipping of the online orders, discounts on active-wear in the mall store and online, and you even get your own personal shopping assistant. Your assistant reviews the quiz answers, picks a piece of workout apparel they think you will like, adds it to your cat, then once a month you decide if you like it. These are just a few of the reasons that Kate Hudson’s Fabletics has positioned themselves in a great spot to be able to take it to Amazon and try to compete with them on a higher level.

Fabletics Is Doing Well

Fabletic is a store that Kate Hudson opened up, and it is doing fantastic. She has created quite a customer base, and the women that shop with her, love her designs. They look forward to when she will have more coming out. It looks like she will have a lot of success creating designs for her customer base, because they love her ideas.

 

When Kate Hudson markets her products and services, she goes online. This is because online marketing offers lot of plusses for her, and she can develop quite a relationship with her customers by doing so online. This is called reverse showroom techniques, and that is what is creating a huge success for Kate Hudson. She is even holding her own against her biggest competitor, Amazon.com.

 

Amazon.com and other big companies also use the reverse showroom techniques. They do not have physical stores that they stock, and they sell online, both products and services.

 

Kate Hudson combines the two. She uses reverse showroom techniques, and online marketing to gain quite a it of the market share. She is doing very well, and she will continue to do so, as her ideas are catching the eyes of many customers.

 

She has a newsletter that the women can sign up for. This keeps them up-to-date, on her latest designs, stores and other information. She also has a club that they can join, and they will receive items that she thinks they will like in the mail every month. They buy what they want, and send the rest back. This way they are getting what they want at all times, making it a pleasurable shopping experience for them, and they want to do more business with her. This works out very well.

 

With the club, she can tell what a woman might be interested in buying, and she sends those types of items to their home. This is because of the online marketing that helps her gather information about each one of her customers.

 

All in all, Kate Hudson, and her Fabletics company are a huge success. She plans to open up at least three more physical stores this year, but will be using the reverse showroom techniques with them also. They are likely to do as well as the other ones, because she places them in areas that she knows will get her the most attention.

 

The marketing strategy that she is using is working out well for her. She looks forward to the future with great hopes that she will continue to be a great success.