Fabletics is a popular company that was created by Kate Hudson in 2013, along with Adam Goldenberg and Don Ressler. The company is famously known for their strong position in the emerging clothing category called “activewear.” Similar to the speed with which the Amazon website store has gained practically a 20% control over the influence of the online retailer clothing market, Fabletics has emerged to become a $250 million company in just about a three year time frame. The clothing company makes use of a member oriented program that delivers extraordinary and inspirational fashion garments online, and at their physical outlets.
Generally, the consumer has the false belief that when an item is more expensive that it is an indicator of higher quality for the item. The truth is, that is simply not a realistic expectation in the modern world. A sharp change in the market pushed consumers to find items with positive reviews, exclusive designs, and for organizations that are making sure that the buyer is actually happy with their item, all the while spending less money.
Quite a few physical stores have been shutting down. This is mainly because the potential consumer goes inside the physical stores to peruse the items, but instead heads online to obtain the product from a different company, often for less money. Fabletics, however, has not experienced this type of decline in sales. Fabletics employs an online member plan, which maintains a high quantity of members, who attest that the products offered are worth buying. Member assessment of the items is imperative for convincing potential consumers to enter the physical department stores and purchase directly from Fabletics. Consumer data confirms that 50% of the buyers who visit the physical departments are members of Fabletic’s website membership program, and 25% of the potential buyers in the physical department stores become actual members, solely from their browsing there.
Fabletics makes use of consumer data to discern what customers are interested in buying from their website algorithm to gather an understanding for what potential buyers are desiring to purchase. When a member looks at an item on their website, this member data is shared with physical stores to ensure that they are carrying those same items that the member data dictates customers online are interested in. This enables the physical departments to easily swap out items on display, and to stay up to date with the customer’s interest in fashion. Current technological advances are also employed, such as data relayed from “heat maps” and social media events online, to illustrate which physical store locations are actively of interest shoppers.
Many retailers have discovered that becoming a true competitor with internet based retailers the likes of Amazon is an arduous and difficult task for the majority of online merchants. Fabletics easily rises to this challenge by offering only the most distinctive products, applying avant-garde methods, member data, and using ROI data, or Return on Investment data, to scale their stores.