What happens when you use a mix of the clever business model, smart branding and membership program, strategic positioning with exclusive activewear? You end up with a brand like Fabletics by Kate Hudson which becomes an instant success and starts to compete with online giants like Amazon. It is not a mere story rather the saga of Fabletics that has captured a huge activewear market share from Amazon, and it is still going strong. This brand has already become a $250 million-dollar business within its first three years, and there is a mix of creative tactics behind such an unprecedented success.
Fabletics is one of the most popular and trendy “Athleisure” brands that sells sportswear, accessories as well as gears for both the male and female segments. However, it is more than an activewear brand as it comes with first of kinds membership offering exclusive outfits which are precisely selected for them based on the member’s lifestyle and preferences. This online subscription retailer was founded on October 1, 2013, by Kate Hudson, Adam Goldenberg, and Don Ressler as a subsidiary of JustFab. In addition to its online store, the company also has a number of shops in some of the most exclusive places in the USA including New Jersey, Las Vegas, North Carolina and much more. In addition to these, the company also uses pop-up stores in different cities for promotion purposes as well. It has a unique membership program which is actually free. However, if the members skip purchasing, they are charged with $49.95 per month, and it is converted into lifetime store credit.
Along with its unique membership subscriptions, Fabletics has some strategies that have made this brand a huge success. Among those, their “Reverse Showrooming” concept is truly groundbreaking. The consumers usually visit their website in the first place and then go to the store to make the purchase and Fabletics actually encourage this as it builds a stronger relationship with their clients. It is also convenient for the clients to research about the products they want to buy and then actually purchase it from the shop. In addition to reverse showrooming, Fabletics is also quite tactful in using the customer data they have collected through surveys and purchases. Based on this, they stock their shops with products and activewear which are in demand. While most of the brands heavily stock up their stores with random items, Fabletics only keeps a line of items that their customers are looking for. This has been possible just because they use their data more intuitively. They use the same data to focus and develop a better focus on accessibility, people and culture. By using the specific data, they know their clients very well and prepare their promotion which is specific and strategically targeted. These are the reasons; Fabletics is doing so good and competing directly with Amazon.