It’s not easy for small start-ups, such as Fabletics who started just three years ago, to penetrate the market and make such a huge impact. Currently, the Fabletics brand has 16 physical stores across the United States. Fabletics uses a subscription approach to sell active wear to its customers.
Clients, who are Fabletics subscribers, enjoy the convenience that comes with being members. Current economic trends have rendered the quality and price of goods and services as the sole determinants of the success of a brand ineffectual.
Redefining the Idea of a High-Value Brand
What Kate Hudson and co are doing with Fabletics is much different. It’s an entirely different strategy and that’s how they managed to grow the Fabletics brand to a $250 million in 3 years. Their strategy prioritizes customer needs. According to Gregg Throgmartin, Fabletics general manager, the company is redefining the understanding of a high-value brand with its products. Knowing who your customers are, what they want, and being able to provide it at half the competitors’ price is Fabletics secret.
Applying Reverse Showroom Technique
Owing to the unique way Fabletics began, the brand has been able to reverse engineer the showroom technique and in turn, managed to avoid the technique backfiring on them. Other brands have had problems with show-rooming where potential customers browse the products offline and later cheaply purchase the same product elsewhere. Fabletics has been able to offset this drawback by building a personal relationship with their clients before building physical stores. The brand uses events and other social activities to build trust and reliability with its customers and understand as well as penetrate the market.
New Markets, New Challenges
To appeal to customers both online and in physical stores, Fabletics understands that they have to stock what they show online in the physical stores. They stock their stores based on the preferences of the members. The products are flexible, which means that they can be slightly altered or tweaked to keep up with the dynamics of consumer preferences. Fabletics has its challenges too, especially as it tries to expand into new territories. Not forgetting that giants Amazon controls a significant portion of the online fashion industry.
The Fabletics brand was created in 2013 by TechStyle fashion group CEOs Don Ressler and Adam Goldenberg in conjunction with Kate and Oliver Hudson. The brand’s objective was to fill the gap in the activewear segment of the online fashion market.
The founders saw that the market was filled with expensive high-end brands and sought to close the gap by providing high-quality gear, affordably. Fabletic’s parent company, TechStyle fashion group, started in 2005 as JustFab before rebranding. Fabletic’s future as an online fashion store is promising, with the brand doing all it can to give their customers the best shopping experience, both offline and online.