The company Fabletics has been in operation for three years. Kate Hudson’s Fabletics has grossed $250 million in those three years, competing directly with online giant Amazon. One of the reason that it’s growing is because of ‘active wear’ movement. While it might seem counter intuitive to start a successful online business and open stores later on, Fabletics has done this successfully. It has followed the example of Apple and Warby, who began an online business and opened stores later.

 

 

Fabletics uses a subscription mechanism to sell clothing to its customers. The model is simple, customers prefer brands that are motivating and that drives a person; that what Fabletics offers and with a mix of convenience and membership, Fabletics has created a powerful combination. It has given an opportunity to the consumer to buy a product that meets their tastes and preferences. It treats the customer as individuals.

 

 

Traditionally, most recognized brands have been defined by price and quality of their goods or services. However, due to the shift of the economic means, this combination might not always work. Customer satisfaction, customer experience, brand recognition, customization and adding elements such as gamification have become major priorities to the modern consumer. So how is Fabletics achieving this? Fabletics uses a membership model that gives them a chance to offer customized services and on-trend at half price of their competitors. This is inspired by the fact that it is easier for a brand to make their customer happy when they know who are their customers and their taste and preferences.

 

 

Fabletics has made use of reverse showrooming model to get products to the customers. What is reverse showrooming? This is a technique that allows Fabletics to concentrate on the culture of the customers in a particular area, such that by the time the company opens a store in that area it already knows what the customers want. It gathers information online e.g. through membership, which is essential to sell its product in both online and the physical stores. This strategy is working for Fabletics since it enables them to build relationships, be trusted, open local stores, and sell their products in events and other activities. Statistics indicate that 30%-50% of the customers who walk into their stores are already a member and about 25% become a member in the store.

 

 

Fabletics know that displaying the right content in both physical and digital stores is vital so as not to destroy the customer-brand journey. While using online local information about preferences implies that physical stores will only hold collections that are preferred by the local customers and can be changed as trends change and tastes change. The local stores are stocked on the basis of various records including membership preferences for the local members, social media comments, real-time sales activity and store heat-mapping data. According to Dustin Netral, Fabletics believe in a chance of shopping which is built on a combination of global fashion trends with user preference data to analyze satisfaction. Fabletics also adds new ranges to do refined tests all the time.

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