Fabletics, a subsidiary brand of TechStyle Fashion Group, is a company that is co-owned by Don Ressler, Adam Goldenberg, and Kate Hudson. Fabletics was launched with the idea of making waves in the fitness clothing market, and it did so with tremendous success. The popularity of the brand can also be attributed to the famous Hollywood actress, Kate Hudson, who is one of the co-owners of Fabletics.
She is the one who has actively participated in the marketing of the brand and taking it to such great heights of success in a very short period. As of now, the company is doing an annual business of over $300 million, and the figure keeps rising every quarter. It is because Fabletics is an aspirational brand that offers low priced athleisure products, the quality of which is on par with any of the other athleisure brands in the market, or better.
Kate Hudson says that the company uses data extensively in making crucial business and management decisions. Even though Fabletics is essential a fashion retail brand that sells Athleisure and fitness clothing items, the company uses technology in all the business and marketing aspects. The technology is used to gather data that is then used to understand what the audience wants, which helps the company to provide customers with exactly what they are looking for. Kate Hudson is a fitness diva as well and an inspiration to millions of women across the country. It is for this reason; Fabletics is growing annually at a staggering pace of over 30 percent every year.
One of the reasons for Fabletics continued success is because, in the last couple of years, Fabletics followed the reverse showroom technique, earlier implemented by Warby Parker and Apple. The company followed the policy of first making a mark in the online retail business, and once it started getting substantial business, it moved its focus to open physical stores across the country. Fabletics has 18 stores in the country today, and the company’s CEO Don Ressler announced that much more would be opened soon in the years to come.
In this technique, the brand is more interested in reaching out to the potential customers and creates brand awareness, rather than getting sales. Fabletics is also known for offering highly personalized shopping experience, and women looking to experience it firsthand should take the lifestyle quiz at the company’s official website. It would help women understand the main reason behind company’s popularity.
The Amazon effect is putting a lot of brick and mortar retailers in a difficult position. Retailers have come to rely on foot traffic as a good indication of business, but sometimes that just isn’t the case. Foot traffic does not mean a good customer anymore, and a lot of customers are using the “showroom technique” to do their shopping using the store more as a showroom than walking in with an actual intent to purchase there. Consumers are using retail locations as a place to scope out a product, as a place to touch it, feel it, and try it on only to walk out with the intention of finding it online at the best price. Fabletics is a company that is reversing this technique on the customer, beating them at their own game.
Fabletics offers a custom VIP membership service on their website, asking customers to commit to their product by requiring a monthly purchase, and keeping them satisfied by giving them a valuable service and a great product at an unbeatable price. The athletic woman in today’s world is trying to squeeze fitness into her every day life and schedule, leaving her less time to shop. Shopping online is always an option, but unless it’s built into a service it is hard to generate a return customer simply because there is so much choice out there on the internet. Fabletics brings her a hand picked shopping cart every month, choosing styles that would befit her based on her style preferences and workout activities. From there it is easy for the Fabletics VIP member to choose several pieces that her $50 monthly commitment allows her. $50 on Fabletics buys a lot of workout gear!
The physical locations Fabletics is opening are frequented by guests who are already committed to the brand. The customers who love the brand are anxious to see what this branch of the brand will offer them. By using data science pulled from the website Fabletics is able to offer tailor fit options that meet the likes and needs of the customer in that particular location. The store in New Jersey carries different merchandise than the Honolulu store based on preferences. When the customers walk into the store, they are already VIP members looking for more and are likely to find what they want, or they are new customers who have the chance to learn all about the brand when they walk through the doors with the option of signing up as VIP members in store.
In this careful mode of business operation Fabletics is guaranteeing themselves a sale by catering to the tastes of their current customers or they are very likely to sign a new guest up for a VIP membership by offering possibly hesitant online shoppers a taste of their brand on a physical plane enticing them to sign up for the membership. Fabletics is truly turning the tables on the “showrooming technique” and is satisfying customers and creating new ones daily.