Amazon is one of the largest clothing retailers of the internet, covering at least 20% of the market share. Kate Hudson’s brand, Fabletics aims to take on the internet giant with their unique ways of marketing. Already the brand has had $250 million in revenue within the past few years. She has teamed up with marketing genius Adam Goldenberg and his own fashion company JustFab.
The tastes of online consumers are changing rapidly and demand different types of products. Online retailers need to offer unique marketing techniques that offer a lifestyle package rather than just fancy clothing. Fabletics has had a lot of success with their subscription based packages, in which they pick out clothing for the customer at a flat monthly rate.
The company has obtained a cult following of subscribers just like Apple. Owning one of Kate Hudson’s products has a certain prestige among the female fitness community. The inclusion of belonging to the latest club or trend is a very powerful marketing technique. They had been marketing their brand as ‘high value’ since their initial launch.
With Fabletics growing rapidly online, they had also decided to open several retail stores in Hawaii, Florida and California. In total, they have 16 stores with plans of rapidly opening more retail locations. They had even announced that they see up to 100 stores being opened in the foreseeable future.
Within one of their retail store, you may notice the reverse show rooming effect. Many customers have already browsed the retail items online and simply want to see the products in person. After trying on clothes, the items may be added to their online shopping cart and customers may choose to make their purchase online. A high percentage of customers entering the store for the first time end up becoming club members since online prices are so cheap.
The online store will use local user data and market information to dictate the items that they will store. Their online shop only stocks items that remain popular and in fashion, avoiding any chance of mediocrity. The company aims to compete with the other few fashion brands that use this extent of data awareness.
A Foodie Stays Fit had given the Fabletics membership a thorough review. She details the quality of each clothing item she received, the benefits of being a subscriber and the prices she paid. She was overall impressed with the quality of her leggings an compared them to other high end retail items.
For those that are not sure what they need, Fabletic has a lifestyle quiz for existing or potential customers. The quiz will use information regarding clothing sizes, preferred physical activities and favorite color templates to determine the clothing styles that are suitable. For subscribers, this quiz also contributes to how their professional stylists pick out clothing for them.
Adam Goldberg and Don Ressler are the guys behind the product and receive a lesser amount of media attention. They have had a lot of success with his online clothing ventures since the early days of the internet. Fabletics has become one of the most successful online ventures ever.