As any fashion designer can confirm, succeeding in the fashion industry is nearly impossible. There’s so much that has to be taken into consideration before even launch. And as if launching a success brand was hard enough, Amazon currently controls about 20 percent of the fashion e-commerce market.
Despite the many disadvantages, Kate Hudson’s Fabletics is challenging Amazon for the top spot. In just three years, Fabletics has grown into a $250 million business. Fabletics uses a subscription based method to sell ‘activewear’ clothing to its customers.
When the founders of the company approached Kate Hudson, they had a simple premise. They wanted her to create brands that inspired and challenged individuals to step outside their comfort zone. That combined with convenience and membership would hopefully be a powerful combination, which it has been. Fabletics is now one of the most recognizable brands in the world.
Before the markets were flooded with e-commerce trading, high-value brands were being identified by price and quality. As the economic standard has shifted, having a fair-priced and high-quality product or service is no longer a guaranteed success. It’s barely enough to even be considered a competitor among the top brands.
Nowadays, consumers look for more personal touches from their favorite brands. It’s all about the company culture and the way it makes customers feel when they shop and buy certain brands. Consumers want things like last-mile services, personal customer experience, brand recognition and exclusive offers, and gamification elements.
Just like other big name brands, such as Apple and Warby Parker, Fabletics is also exploring physical stores. Not only is the online membership successful, but the in-store membership is also showing promise. Currently, the brand has sixteen stores in highly populated states like Hawaii, Illinois, Florida, and California. The new stores promise to open in places like New York and Texas.
Opening physical stores is an e-commerce world is quite difficult. The one downfall that many stores have failed to counteract is “showrooming.” Showrooming is when people shop around in stores and go home and buy the desired item online for cheaper.
In order to address this hazard, Fabletics introduced “reverse showrooming.” The Fabletics stores host events and open-store sales to embrace and learn about the local markets. Most of the stores’ visitors are already members, and about 25 percent become members after looking around and interacting with other customers.
All in all, Fabletics is actually a great activewear provider. The prices and quality are high-value products. Becoming a member is a simple process. Most people join as a VIP Member because their first outfit is only $25, and they get discounted prices on lots of other items.
One of the most alluring amenities of Fabletics is the ability to skip monthly payments. While other membership companies charge every month, Fabletics allows members to skip payments when they don’t see anything they like. If there’s nothing good that month, don’t worry about paying.