Startups have always found it difficult to enter a market that is dominated by large enterprises. And so when Kate Hudson’s Fabletics emerged in 2013 to face off with Amazon and other e-commerce giants, many people doubted the company. Four years later, the company has over 16 physical stores in America, and it has ventured out to international markets. Since it was founded, Fabletics has grown by over 200% and its revenues this year are expected to be in excess of $235 million. The company reports that it has over one million paying members.
Fashion brands are increasingly becoming membership-based. According to Gregg Throgmartin, the membership model allows the company to customize its services to the specific needs of its member (s). Throgmartin, Fabletics’ President, affirms that Fabletics can offer activewear clothing to its members at a lower cost than its competitors. The company’s president believes that it is easier make customers happy when their identity, and what they want is revealed through membership.
One notable thing about Fabletics is its appetite to open new stores while its counterparts are moving away from the physical store concept. The trend is to close physical stores and operate vibrant online stores. Although Fabletics has an unbeatable online presence, the company believes in the power of physical stores, especially when approached innovatively. Over 90% of products found in any Fabletics’ physical stores have strategically been placed there. The company uses local online data, local member’s preferences, social media demands, store heat-mapping, and sale statistics to inform its stores stocking needs. The result is a physical store with items tailored for the local consumers.
Fabletics uses its physical stores to create beneficial relationships. If a person walks into a Fabletics store and he/she is not a member of Fabletics, the company is willing to enlist them in their membership list. According to the company’s statistics, over 50% of people who walk into a Fabletics store are already members while over 25% of non-members sign up as members.
The rise of Fabletics in the activewear industry is a demonstration that the market is always open for innovative brands. Fabletics is one of the many modern brands that are flexible, data-aware, and risk-positive with an in-depth understanding of the 21st Century consumer.
Fabletics is an activewear company with an interest to promote the athleisure trend. The company’s products are suitable for men and women who value an active lifestyle. To get the right Fabletics’ clothing, one simply needs to take the company’s “Lifestyle Quiz.”
In one of Kim Dao’s latest vlogs she helps fellow YouTuber Sophie (aka Peachmilky) and her boyfriend Luke move apartments in Japan. This latest vlog is called “Moving apartments & Japan Supermarket Haul | ft. Peachmilky.”
The video starts off with Kim Dao taking us on a tour of the Tokyo metro line. Once she arrives at Sophie’s current apartment, Sophie gives Kim a little present. Kim Dao is shocked when she opens her gift to reveal “Sailor Moon” facemasks and cookies. The two spend the rest of the night eating pizza and watching anime.
The next day, the moving truck arrives to take all of Sophie and Luke’s possessions. Sophie and Kim Dao then take a train to meet Luke and the movers at the new apartment. Before they get there, Kim and Sophie decide to get a quick snack at a convenient restaurant. Kim Dao orders udon soup.Learn more : http://www.yummyjapan.net/creator/kimdaovlog
Kim Dao didn’t film much of unpacking at Sophie’s new place because she said it would just be too stressful to film there. So, in the next section of this vlog it’s nighttime and Kim Dao is walking down the illumined streets of Ikebukuro. She says she needs to do a bit of shopping at local drug stores.Learn more : http://myinterviews.com.au/kim-dao/
Once she gets back home, Kim Dao shows us everything she purchased at the drug stores in Ikebukuro. Just a few of the items she got include enokitake mushrooms, eggs, coffee, and peach juice.
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.