Though the internet has made it easier for brands to find their way to consumers, online giants like Amazon have made it challenging in order to succeed. This is especially true for those in the fashion industry since Amazon controls an approximate 20% of the online fashion market. In the case of Fabletics, ingenuity, goal setting, and a little star power gave them a road map to success.
Fabletics is a subscription service that provides customers with activewear from notable brands, which often get modeled by actress and part owner Kate Hudson. Many of the brands offered up by the service are high-end, but the business model keeps the cost consumer friendly. But where Fabletics really retains customers is through application of game theory and a commitment to comprehensive customer service. Their plan seems to be paying off as plans for expansion to physical stores in Florida and California are underway.
Gregg Throgmartin, General Manager, attributes their success to innovation on retail that allows them to undersell the competition by better understanding their subscribers and their needs. That manifests in a few interesting ways.
While many physical stores are losing out to customers who browse their products but purchase from online marketplaces for less, Fabletics manages to have browsers turn into buyers with pop-up installations. This strategy is effective at strengthening customer relations though engaging events that employ game theory to get people excited about the brand. Internal numbers show that this has resulted in getting many subscribers to reappear at events, sometimes making up as much as 50% of attendees, and 25% becoming subscribers at the end of the event.
The attention to data is not just a way to measure success but to ensure it adds to growth. Fabletics has applied its digital presence to maintaining consumer trust and satisfaction. By tracking what subscribers want online they know how to stock the shelves of their physical stores. According to Dustin Netral, Senior Vice President of Operations, this preference data takes fashion trends and internal data to ensure satisfaction.
Understanding data and how to apply it has solved many problems by helping the company has faced from concept to debut, and that commitment to change will be relied upon as they move forward. Now in the wild, Fabletics is encountering competition from companies working off similar models to theirs, and competing companies aware of the power of data and how to reduce risk for consumer and investor alike makes for a complex commerce environment. But dual presence, online and in physical spaces, is part of what Fabletics is hoping will get consumers to embrace a new way of browsing that leads to more sales, and that the enthusiasm that results from it makes for competitive loyalty both online and offline.
Fabletics was founded in 2013 by actress Kate Hudson, and Don Ressler and Adam Goldenberg from Just Fab Inc. to find a niche in the fashion industry by catering to those seeking activewear.
Fabletics is dedicated to providing high-end activewear and engaging with subscribers to keep them motivated enough to remain active. By remaining on top of emerging trends, Fabletics focuses on providing quality products and services while remaining equitable for consumers who want to find their passion in life. |