In a period of time when many retailers are looking to close their physical locations and concentrate wholeheartedly on the Internet and Online based retailing options the Fabletics brand is looking to turn the tables by moving offline after achieving initial success Online. Fabletics has become such a force in its short three years of life that it has developed to have an estimated value of more than $250 million based on its Internet based membership programs; these programs offer individual consumers a range of clothing options in the workout and leisure wear areas at discounted and special offer pricing.

 

Fabletics began life as an Online retailer who offers a glimpse into a lifestyle many customers aspire to achieve, the main marketing campaigns of Fabletics revolve around the lifestyle and personal image of investor Kate Hudson. The actress has created social media marketing campaigns that include her own choices from the Fabletics range that have usually become high quality sellers for Website members.

 

The question many Online retailers have faced when attempting to develop a fashion based brand is how to get their products into the hands of customers who wish to try the garments before they buy. Fabletics has made a major impact with its use of popup physical stores where members and non-members of the brand can explore the many options available in a techniques that has become known as reverse showrooming; the idea is based on the traditional showrooming problem facing retailers where customers try on clothes in a physical store before seeking out lower priced items Online. Executives and insiders at Fabletics have reported they do not care whether a customer purchases clothing options from the Internet or from a physical store, which means members have the opportunity to try on clothing options that are then loaded onto their Online shopping cart. With anywhere from 30 to 50 percent of visitors to the every growing number of physical locations Fabletics operates already being members, plus 20 percent of new members joining in popup stores the reverse showrooming technique is proving a major success for the active wear brand.

 

Not only is Fabletics finding success among industry insiders, the brand is also benefitting from a large number of positive reviews provided by real life members expressing their love for the brand. Across the board of content the positive reviews have been flowing in for Fabletics, including in terms of the quality of the clothing available that has been praised as matching that found from brands that traditionally cost more than the average of $50 per outfit. Customers also seem to enjoy the option of skipping a month if they are not in need of a new workout outfit at that particular time.

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.