For you to succeed in fashion, you have to have a solid plan on how to deal with Amazon, which controls 20% of the e-commerce market. Kate Hudson’s Fabletics has done exactly that. In just three years, the company has grown its net worth to about $250 million. Fabletics has been able to ride the popularity wave of ‘activewear’ combined with a subscription mechanism. The strategy is quite simple; they give customers convenience and exclusivity.
Old Methods Do Not Work
Most high-end brands have usually relied on brand recognition and quality products. However, that has changed in recent years due to the tough economic environment. That means that brand recognition is no longer a guarantee of making sales. Now things such as the customer’s experience, last-mile service, exclusivity, and gamification are all factors that play into determining how much a company values a product.
.The Company, which likens itself to Apple, says that its strategic position in the market so far has paid off. It plans to open more stores throughout the country in coming months. The company already has physical stores in Illinois, California, Florida, and Hawaii.
Management Reveals the Secret to It Success
The general manager for Fabletics recently revealed that the company’s ability to re-imagine what a high-end clothing line means is amongst the reasons for its success. Besides that, the company credits its membership model, which lets it offer personalized service to its clients as helping it to succeed.
Some of the Strategies Fabletics is using
One of the strategies that the company employs is reverse showrooming. Most high-end brands are being destroyed by showrooms. It has resulted in customers browsing for items and then making their purchase elsewhere. However, Fabletics has found a way to capitalize on showrooms. The result is that over 30 percent of all people who walk into Fabletics stores are already members. Another 25% join the membership program while at the store. When a customer tries on an item of clothing, it is added to their shopping cart. For Fabletics, it does not matter whether the customer makes a purchase offline or online.
Fabletics Makes use of Data
Data plays a big role in the success of Fabletics. They understand that it is important to put the right kind of content in front of customers. The result is that its physical stores are usually stocked with items that are appealing to people in a certain area. However, that is not all they check. The company also has a team that checks the global fashion trends. They will then merge the data with these trends to ensure that clients get what they desire.
Fabletics is Big on People and Culture
Fabletics has faced some major challenges especially as it seeks to expand into new territories. However, it has still managed to find the perfect balance between customer experience, consumer education, and lifestyle. In the recent past, it has averaged growth of about 35% per year, which is awesome by any standards.