With Amazon taking over around 20 percent of the fashion e-commerce market, it’s hard for anybody to catch a break within the industry. This is why what Fabletics is doing is completely remarkable. In just three years, Fabletics has grown to become a $250 million business. Using a subscription mechanic, Fabletics sells customers fashion from the ever-growing activewear movement. The company works off of a simple idea and gives customers a convenience factor with unbeatable fashion.
Historically speaking, quality brands have found their success simply through price and quality of their services and goods. With more and more e-commerce solutions in recent years, the consumer’s idea of a high value brand has changed. Consumers are now concerned about customer experience, brand recognition, last-mile service, and exclusive design, in addition to affordability and quality.
General Manager of Fabletics Gregg Throgmartin believes that Fabletics has built a more modern version of high value brands. The company’s membership mechanism offers customers a personalized service with affordable fashion. He credits the company’s success with knowing who their customers are and what makes them happy.
With Fabletics opening more and more physical locations all over the country, their success hasn’t slowed. While other companies are suffering through their showrooming techniques, Fabletics is killing it. Unfortunately for many, customers tend to browse offline and then buy their products for a cheaper price elsewhere. Fabletics turned that sad fact into a positive. Their membership model allows them to build relationships with their customers before they even walk in the door.
Anywhere between 30 to 50 percent of customers who walk into Fabletics’ stores are already members. Another 25 percent become members before they leave. When a member comes in to the store and tries something on, the item is added onto the member’s online shopping cart. Fabletics won’t pressure a member to buy something in store or online; they don’t care how you buy, as long as you buy.
Fabletics uses analytics and online data in order to stock their shelves properly. They use online local data about customers’ preferences in the store. Fabletics’ stores stock their shelves only with items that are most likely to appeal to customers in that area. They look at data from numerous angles, like social media sentiment and membership preferences.
While every company isn’t without its challenges, Fabletics seems to be taking each challenge in stride. The company has experienced a growth rate of 35 percent per year. This growth speaks volumes of having a great product, at affordable prices. Fabletics truly understands “new” consumers and strives to give them innovative membership programs, fast purchase options, and smart distribution.
The company has put themselves on the board by defining themselves with data science, enterprise technology, and providing an exclusive product. Opening more and more physical stores as time goes on will only add to their ever-growing, unparalleled success, with the company’s plans to have almost 100 open in the next few years.