Fabletics is an online fashion retailer for high quality and pocket-friendly active wear for women. Kate Hudson cofounded the online store in 2013 with the aim of providing athletic wear and accessories to women to help them look great. Since inception, the company has generated over $250 million revenue and opened sixteen physical stores in California, Hawaii, Florida, and Illinois. The fashion brand operates its online shop through membership subscription where they provide outfits based on the member’s lifestyle and personal preference. The company functions as a subsidiary of Techstyle Fashion Group (formerly known as JustFab).
Fabletics, which previously started as a provider of athletic wear, has expanded its inventory to include dresses and swimsuits. The high-value brands from their competitors are renowned for being overly expensive. However, in this era, most customers check on the excellent customer experience, unique design, and brand recognition to identify the high-value brands.
The Growth Strategy at Fabletics
Showrooming has been a challenge among most fashion stores where people browse offline and then visit other places to purchase the same item at a lower price. However, Fabletics has managed to curb this problem with their membership subscription model where most of the people visiting their online shops are members. Additionally, a significant percentage of people become members on visiting their stores. When a customer tries a piece of clothing, Fabletics includes it in the members shopping cart where they can purchase it at their convenience.
Additionally, Fabletics has used a combination of global fashion trends with the customers’ preference to provide satisfactory results. Most of the physical stores stock only the items that appeal to them. They also observe the current trends on the social media and the local members without interviewing them. However, there is more to gaining more customers by conducting tests and having interviews on every person’s trend and Fabletics has succeeded in achieving that. The online fashion retailer‘s knowledge of the lifestyle trends and excellent customer service has contributed to a 35% growth of the company. Their marketing strategy and different programs that they provide to the customers have seen them compete very well with renowned companies like Amazon.
Fabletics has made shopping easy for their members by making personalized outfits that suit their lifestyles. The clients choose from the thousands of styles given to them after which they shop as guests or VIP members. They award their VIP members with free royalty points and free shipping for orders exceeding $49.95. The members also get to save almost 50% off the regular pricing.
The VIP Members pay a subscription fee of $49.95 every month if they choose to buy an item. Before fifth of every month, a member should make a choice between “make an order” and “skip the month.” Fabletics does not charge the VIP subscription fee if you choose the “skip the month” option. The members are free to cancel their subscription at any time by contacting their customer service team.