Fabletics has done the unthinkable and has become healthy competition to big companies like Amazon and has even grown to be worth as much as $250 million. Unlike many online retailers, Fabletics uses a subscription service to sell its merchandise to customers. Fabletics also offers personalized service and convenience that its members love.
The way that consumers see brands these days have drastically changed over the years. It used to be thought that the more expensive a brand was, the better quality it was, but that is just not so, at least with Fabletics. Fabletics has worked hard to offer a brand that is stylish, of great quality, and yet remains affordable.
Instead of scaling quickly like many of its competitors, Fabletics decided to take its time and get to know their customer base before growing. This proved to be a very successful strategy, and Fabletics now has stores in Hawaii, California, Florida, and Illinois. They also have plans to open more as well.
Greg Throgmartin, general manager of Fabletics, accredits the success of the company to its membership strategy that allows the company to offer a very personalized and stellar service to all of its members.
Fabletics wasn’t about to let “showrooming” effect it negatively and instead reversed its negative effects. Instead of having customers shop offline and then buy items at another place at a lower price, they got to know their customer base and adjusted their product accordingly. That is why 30 to 50 percent of their customers are already members that shop their stores and another 25 percent become members in-store.
Fabletics has become a really popular brand and has even gotten the attention of celebrities like Demi Lovato. The brand stands for so much more than just a pretty workout outfit. It makes women feel great about their bodies and gives them something to look forward to wearing. There’s a reason Fabletics has grown to become a company worth $250 million.
Although Kate Hudson, the founder of Fabletics, has no traditional background in business, she knows a thing or two about fashion and style. She also stays very involved in the company and is in-tune to what her client base is after and adjusts her product accordingly. If something is hot she knows what to recreate. If something is not selling, she will pull it from the line to make room for what does sell.