After starting Fabletics in 2013, Kate Hudson’s company achieved a value of $250 million in just three short years. Fabletics is an online fashion activewear retailer that sells its clothing at an affordable price. The company also uses a subscription model where members pay a monthly fee unless they choose to opt out at the beginning of any month.
High-value brands in the past have been determined mostly by their price and quality. That model is no longer enough in order to appeal to consumers. People are also looking for a great customer experience, tailored to their individuality, exclusive designs, a fashionable look, and last-mile service. These are all key things that Fabletics delivers to its customers.
In addition to the online storefront, Fabletics started opening retail brick & mortar stores around the country in 2015. The first stores were in California, Hawaii, Florida, and Illinois. In 2016 they opened another 100 stores in the United States.
One of the key ingredients has made Fabletics so successful is its membership model. According to Fabletic’s General Manager, Gregg Throgmartin, this model allows the company to offer personalized services to its members. When the member makes their first order they’re prompted to fill out a questionnaire which determines what their fashion style is. Fabletics is then able to offer them activewear that fits what they are looking for. Another key is that the membership model enables them to offer clothing at half the price of Fabletic’s competitors.
Fabletics retail stores, unlike any other retailer, encourages reverse showrooming. They want shoppers to browse clothing in the store and then order online off their website if the customer so chooses, or buy it in the store. This also allows the company to build a closer relationship with their members, hold local events, and be more aware of what is happening in the world of fashion. Due to reverse showrooming, 30-50% of the people that enter their stores are already members. Another 25% of shoppers sign up while they are in the store.
Fabletics uses the data of its members in order to partly determine what they stock in each individual b&m store. In this way, they can appeal to what is locally trendy in each market and keep on top of the latest trends. The company also uses real-time sales activity to track what is popular as well as store heat-mapping data.
The elephant in the online room is Amazon. Fabletics is able to compete with Amazon because they are nimble, make great use of customer information, and personalize the products they offer their clients.
Reviews of the women’s activewear clothing that Fabletics sells is very positive. The quality of the clothing is excellent and far better than what one would expect given their low prices in comparison to the competition. Other reviews say that the styles they offer are impressive with fun touches like cut-outs and sheer fabrics. The value that Fabletics offers is solid given the quality, fashionability, and low prices.