Fabletics is a fashion brand and company that was started by movie actress Kate Hudson. It is known for offering active wear for women. The company combines high end clothing with highly competitive pricing, convenience and membership based services to create a brand that is able to compete with the likes of e-commerce giant, Amazon. 20% of the total online fashion market goes to Amazon currently. The fact that Fabletics, a recent startup, is able to compete with Amazon is an amazing feat in of itself.
So how exactly does Fabletics manage to compete with Amazon? Offering quality products at a good price used to be enough for success, but not anymore. Companies must go above and beyond know to win over the modern customer. Today things like brand popularity, customer service and experience and exclusive products are becoming greater factors in satisfying customers. Shifting gear back to Fabletics, the general manager of the company thinks that Fabletics has managed to win over customers and establish itself firmly in the market for several reasons.
Fabletics, says general manager, Gregg Throgmartin, has created an unorthodox brand image since its inception. It tailors the shopping experience to the customer and is able to offer prices as low as half of similarly priced competitor items. Combine the two, and you have an almost surefire recipe for success even in the tough world of e-commerce. Throgmartin adds, that, when you know what your customer’s preferences are, it is that much easier to offer them products that you think they will like. This also allows the company to pass on savings to its subscription members.
Other factors also play a role in the rise of Fabletics despite fierce competition in the marketplace. The brand is focusing increasingly on customer value. This is becoming more and more important and valuable both in terms of sales and overall business value. Brand value on the other hand seems to have dropped in importance when compared to customer value.
Fabletics has managed to turn showrooming into a plus and not a minus too. Most of the visitors to the store are already paid and subscribing members to Fabletics on the web. Stores also have a conversion rate of about 25% of new shoppers into paid subscribers. When clothes are tried on in store, they are also automatically added to a person’s online shopping cart. This seizes on the opportunity that a person can try a product in store, but decide to purchase it later online.
The Fabletics model also makes stores more likely to be profitable. For example, by already knowing what the interests and preferences of its paid members are in an area, Fabletics stores can be stocked with items tailored to their needs and preferences. This makes it more likely that stores will sell their merchandise at a profit and not end up selling items for a loss at clearance level prices. Fashion trends and internet data are also taken in account when inventory is determined for physical stores. This is yet another way that Fabletics is using technology and trends to make its stores and ultimately its company more profitable.