Kate Hudson’s Fabletic’s company is expanding and reaching beyond $250 million in just a three year span. Fabletic is a part of the activewear market that is soaring now. Fabletics attracts its customers with it’s subscription base. The company’s basis is simple. Consumers are attracted to brands that push the limits, mixing both membership and convenience. This combination is very powerful.
Historically, brands have always been defined by the quality of the product and the price. But here recently, economics have shifted and that means that the combination is not competitive enough or even a success. What has become important to consumers today is quality customer service, uniqueness, recognition of the brand, and consumer experience with the brand. This is how the determination is made by the consumer for the value of the brand.
Fabletic compares itself to Warby Parker and Apple. The strategy that Fabletic uses is proving to be successful with it’s membership based brand. The objective now is to open more physical stores within the year. This adds to the 16 currently operating in Florida, Hawaii, California, and Illinois.
Gregg Throgmartin, the General Manager of Fabletics says the secret to the company’s success is the reinvented version of a high quality brand. The membership is what gives the company the option to personalize business services and to continue to be a trending fashion at a fraction of the cost compared to other competitors. Throgmartin states that it is easier to make consumers happy when you can relate your products to their specific needs.
Reversing the Showroom
Fabletics has surpassed the norm when it comes to showrooming. People often browse online and often buy items at a lower cost elsewhere. But with the way Fabletics has started off, it has turned browsing into a more positive experience. With its membership base, it opens the door to build relationships with its consumers, it learns the local market demands through various activities. The end result is that between 30% and 50% of the consumers that come into a Fabletic’s store is already an existing member. 25% that come in often become members by the time they leave.
Online Data Is Important
Digital and physical showing of the product is an essential key in understanding the consumers needs and the brand’s journey. Online local data shows consumer preferences and how the physical stores need to stock the products based on consumer demand and appeal. Trends change and consumer demands change. But Fabletic keeps current with the demand of the consumer. Membership preferences and input determines how the physical store will be laid out and the products that it will sell.
Focusing on People and Culture
Fabletics faces challenges as the company expands and delves into different territories. Lifestyle and the education of the consumer and their experience with Fabletics is starting to pay off. Growth is a key factor when it is put with a quality, high end product at an affordable price.
Fabletics is becoming competition with Amazon. Amazon controls about 20% of the eCommerce business. Fabletics, Bonobos, and Warby Parker have figured out how to continue their success by selling quality products based on data, consumer needs and wants, cost, and keeping with the current trends.