The e-commerce market is extremely competitive, especially when it comes to fashion. Amazon controls 20% of the e-commerce fashion market, but there is one company that is taking Amazon head-on and having success, Fabletics, a subscription-based activewear company that has experienced a lot of growth in recent years.
Fabletics has a few things working in its favor helping them with this cause. Its celebrity CEO, Kate Hudson, is a huge help to the company with branding and marketing. The company has also adopted the subscription method of selling its activewear to consumers. Mixing Hudson’s inspiration-laden social media marketing campaign with their convenient purchasing methods has led to Fabletics growing to a $250 million business.
The company has gotten more aggressive recently and has started opening physical stores. There are sixteen stores so far across the United States and there are planning for several more in the coming years. These stores have been a success because of their unique methodology. The following are three ways that Fabletics is changing the way the fashion stores operate.
- The Reverse Showroom – One issue clothing retailers have is people finding products they like in the store and buying them online at a lower price. Fabletics has developed a way to combat this by creating what they call a “reverse showroom”. Most of the people that shop in the stores are current or future members. The store gives them the ability to try on clothing and then place it in their shopping cart online for purchase when they get home.
- Fabletics Uses Online Data to Shape Their Physical Showroom – Each store utilizes localized data about customer preferences to guide their buyers, helping them avoid stocking items local shoppers wi not be interested in. Fabletics succeeds by being a national clothing brand with a local touch.
- They Understand the Modern Consumer – Shoppers today want innovative money-saving ways to purchase items along with both a fast point of sale and streamlined shipping methods. Fabletics provides all of these things, leading to the company growing at an average rate of 35% per year. The company is also great at keeping members informed about future products. The complete and clear understanding of Fabletic’s current and future competitors is the backbone of its success so far.
Starting a new clothing brand in today’s market is a daunting proposition. New brands know they are going to have to compete with Amazon. There are companies that are doing it with some success recently, thanks to niché products and innovative purchasing methods.
Subscription-based shopping has been around for years in other markets and is only just starting to catch on in the clothing world. Kate Hudson and her company are at the forefront of this industry-changing trend. The company’s strategic and intelligent approach to opening and expanding physical retail locations both helps them in that market and serves to improve the online sales. Amazon still controls the e-commerce world, but companies like Fabletics still have room for success.