The fashion industry is competitive. It is extremely hard to get a new brand off the ground because of the companies that have controlled the industry for so long. Add to that the fact that Amazon owns the fashion industry when it comes to e-commerce and it becomes even more difficult. In order to compete a company must create an innovative product and offer it to their customers in a way they have never seen before. Fabletics does both of these things.
Fabletics was founded in 2013 and has been experiencing growth at a rate of 35% ever since. How did they do this while facing the force that is Amazon’s e-commerce business? They did it by developing one-of-a-kind active wear and offering it on a subscription basis to its membership base.
The company has recently become more aggressive and has started opening retail locations. There are a small amount so far in a few states. The company is planning on opening more in the near future as a result of their success. The physical storefronts have a few unique ways of operating that helps guide this success.
Customers Like to Try It On and Buy Online – Other retail fashion companies are dealing with the issue of customers coming into the store, trying on clothes, and then going online to purchase them at a lower price. This process is referred to as “showrooming”. The membership process of Fabletics helps eliminate this.
At a Fabletics store, customers put the clothing they try on in a cart and purchase it online later, making Fabletics more convenient as both a retail and an e-commerce business than competitors. Instead of trying to change the way customers shop, they are adapting to the market. An estimated 50-70% of Fabletic’s in-store shoppers are either members or future members.
They Use E-commerce Data to Shape Their Physical Stores – Fabletics uses e-commerce data in a progressive way. They design the inventory in their physical locations to reflect local buying trends. This means that everything you see for sale in a Fabletics store is something that people are buying on a regular basis. The company is not interested in trying to sell something that consumers have zero interest in.
They Put the Consumer First – Kate Hudson and her board truly understands the wants and needs of their customer base. Giving them a streamlined purchase and shipping process is a huge reason the company has grown by 35% each year since 2013. The company has a culture and a niché product helping them compete with the behemoth Amazon.
As you can see, it is difficult to compete with Amazon when it comes to the e-commerce fashion market. It’s not impossible, though. The key for any company looking to compete in is to have a niché product customers will love. One top of this, a streamlined point of sale and shipping process is necessary. Fabletics, and other similar companies have adapted this process and are seeing great results.