Succeeding in online business is no mean feat, especially in an industry that is dominated by large brands. Few established companies are making huge profits by trading online. One such company is Amazon, which controls a substantial share of the fashion e-commerce market. Currently, Amazon controls a whopping 20 percent of the internet fashion industry.
In the last couple of years, a few companies have tried to get a share of the cake to no avail. However, the establishment of Fabletics brought competition right to the Amazon’s door. The company has already built a 250 million dollar enterprise in less than five years. Fabletics has established an activewear brand that is already doing well in the market.
Fabletics introduced a subscription-based model, which has helped the company to grow their clientele base in a short time. In this marketing model, customers are given the opportunity to apply for membership which gives them access to a portfolio of established brands. Subscribed members can also access high-quality activewear at an affordable price.
Historically, high-value brands have been defined by price and the quality of services or goods that they offer. However, the recent trends indicate that this combination is no longer feasible and it cannot guarantee success. A new combination of things such as customer experience, last-mile service, brand recognition, gamification elements and exclusive design play a crucial role in determining what high-value to a consumer is.
Fabletics is using a marketing model that is used by tech-giant companies such as the Apple and Warby Parker. The strategy seems to work well for Fabletics since they are expected to open more brick and mortar stores by the end of this year to top to the 16 stores that are spread across the country.
According to Gregg Throgmartin, Fabletics General Manager notes that the secret behind the company’s success lies in their membership model that allows them to provide customized services and trendy clothes at affordable prices. Fabletics is currently offering the most competitive prices in the market.
Fabletics success in reverse showrooming
Fabletics has succeeded in utilizing reverse showrooming. Unlike their competitors who are driven out of the market by showrooming, Fabletics have reversed the model to their advantage. In showrooming, customers browse offline and then go to purchase the products elsewhere.
Kate Hudson is the main image behind Fabletics. She is an entertainment icon who has built a great name in the entertainment industry. She has led the company through a success path where it recently won the athleisure brand. She was excited about winning the athleisure brand and promised to work harder to grow Fabletics even more.