With Amazon consuming 20 percent of the fashion e-commerce market, it’s hard to get in the business. This makes the success of Fabletics all the more amazing. Kate Hudson’s brand has grown into a $250 million business in just three years, taking action on the ever-growing ‘activewear’ movement. By using a simple subscription mechanic, they deliver individualized fashion to members, with added convenience.
Historically, brands have been deemed high-value as defined primarily by their quality and price. With the world of the internet growing, a shift in those economics has happened. Now, things like customer experience, exclusive design, last-mile service, and brand recognition are becoming more and more important. Fabletics’ simple design has allowed them to become a high-value brand.
The simple mechanic of their business has proved successful for Fabletics. The company keeps opening more and more physical stores, with no plans to slow down soon. General Manager Gregg Throgmartin believes their secret lies in how their membership model allows them to give each customer a personalized service at half the price of their competitors.
Even Fabletics’ stores are different. While most places are getting destroyed by showrooming, Fabletics switched the model. Usually people browse offline but then go home and buy them cheaper online when they get home. Because of the unique way Fabletics started out, up to 50 percent of the people who walk in their store are already members. Another quarter will become members before they leave. Fabletics intertwines customers’ shopping carts, integrating their choices in their dressing room and their choices in their online carts. It doesn’t matter to Fabletics if you buy in-store or online, as long as you’re a member.
Fabletics even stocks their shelves based on local data. They take data about what local members like and their social preferences, deciding what to stock on their shelves with that information. This adds to the company’s already guaranteed personalized service. Last-mile service and customer experience is the end game.
From the customers’ stand point, Fabletics is simple yet personal. Customers love that as a member, you get 2-3 pieces of clothing each month and skip a month without being charged. After taking surveys that ask you what kinds of exercise you do and what kinds of outfits you like, Fabletics matches the results and creates a list of suggestions for you.
As far as the quality is concerned, the product is well worth the price. There is a wide variety of options for each customer, from simple to bold, sheer to solid. Their unlimited options make it easy for each customer to customize each outfit to their taste. The value of each brand is unquestionable, saving the customer time and money by providing them with an easy service.
Fabletics offers customers many choices, from outfit choices to skipping a month of payment. For die-hard exercise enthusiasts, they’ve got everything necessary. For those who may not have the need to have new activewear each month, skipping is always an option. At Fabletics, it’s all about the customer.