Fabletics has done an incredible job of penetrating and creating itself a market niche in a highly competitive e-commerce fashion market led by Amazon, which controls 20 percent of the market. In its three years of operation, Fabletics has managed to grow into a $250 million company focusing on the activewear market.
Fabletics uses an innovative subscription mechanic to promote and sell its clothing to customers. It relies on the premise that consumers are naturally inclined to like aspirational brands that push individuals to want to purchase their products. Mix this with membership and convenience, and you come up with a powerful brand.
Fabletics Relies on New Marketing Dynamics
Traditionally, high-value brands relied on price and the quality of their goods and services to remain competitive and guarantee their success. However, changing market dynamics and a shift in economics means that things like customer experience, last-mile service, gamification, exclusive design, and brand recognition have become the new determiners of competitive advantage.
Fabletics’ marketing strategy and positioning mostly resembles Warby Parker’s and Apple’s, a move that has paid off for the company. The online subscription brand has been so successful that it opened six stores in 2015, and increased the number to 16 in 2016.
Fabletics has managed to build a high-value brand based on a membership model that has made online shopping feel like a personalized service. Furthermore, the fashion retailer sells trendy clothing at half the price of its competitors.
Reverse Showroom Technique
Fabletics successfully uses “reverse showrooming” to attract customers and sell clothing. The company continuously builds relationships and knows the market by organizing events and other CSR activities. At least 30 percent of the people that walk into a Fabletics store are already members while another 25 percent become members by the time they leave the store.
Apart from the reverse showroom technique, Fabletics uses online data to ensure that they only stock items in their stores that appeal to customers. The data is sourced from social media sentiment, real-time sales activity, and store heat-mapping data. On top of this, Fabletics knows that growth is reliant on people, accessibility, and culture. Today, the company enjoys a 35 percent year-over-year growth rate.
Fabletics is one of the successful subsidiary companies of JustFab Inc., recently re-launched as TechStyle Fashion Group. The company was launched in 2013 by Kate Hudson (a successful Hollywood actress) together with Adam Goldenberg and Don Ressler, the co-founders of TechStyle Fashion Group. Fabletics primarily produces and markets active wear and athleisure wear. By 2014, the online fashion retailer had penetrated the European market including Germany, France, and the United Kingdom.
In 2015, Fabletics was shipping orders to Australia, launched a men’s line, and opened six retail locations within the U.S. The online fashion retailer is dedicated to creating clothing that inspires people to lead an active lifestyle in comfortable but trendy workout outfits. Kate Hudson has done an incredible job in promoting Fabletics to the International market making it one of the best performing subsidiaries of TechStyle Fashion Group.