Making a dent in the modern fashion industry is no easy feat! Especially when you consider that the marketing super giant Amazon is cornering a good 20% of the the fashion e-commerce market. But that hasn’t stopped Kate Hudson and her exciting Fabletics line of fashion clothing and accessories from growing into a $250 million dollar enterprise within three short years.
How Was this Marketing Feat Accomplished?
Fabletics has taken a modern and intuitive approach to the “active wear” movement and offers their fine products as part of a subscription mechanic to distribute their products. It works simply enough, customers choose to like the brand for it’s inspirational advantages to achieving health and fitness aspirations. With a little more confidence and the convenience of an exclusive membership to the e-commerce system the dynamic combination is very potent.
There was a time when high prices and top quality items were the distinguishing factors in a leading brand of clothing and accessories. But economics has shifted greatly and this combination of price for quality is no longer enough to maintain a competitive edge in the e-commerce market. Now the more important factors are customer service and experience, brand recognition, creative designs and exclusive content. These characteristics are what Fabletics uses to gain a traction and provide value to today’s modern consumers.
What’s the Big Secret?
According to Gregg Throgmartin, the general manager at Fabletics, it’s all about reaching the modern and reinvented image of what a modern “High-value Brand” should achieve and provide to their customers. Our membership policy allows us to open personalized services and fashion choices that are on the mark with current trends. Furthermore, we can offer all this at half the price you could find them elsewhere on the market. Then there is the magic of “Reverse Showrooming”…
What is “Reverse Showrooming”?
While many other trendy fashion suppliers are being killed in the showroom, where interested clients find what they like and then go off to find a cheaper option somewhere else. At Fabletics This tendency has been flipped around due to their unique way of starting up the business. Instead of losing out in the showroom, they have turned it into one of their strongest assets.
Instead of shooting high with the popular store front option, they went slower and took the time to cultivate a following of interested consumers. This was done with events and other sign on activities. As a result, more than 30% of the customers who do their shopping with the physical location are already members, and another 25% will be members as soon as they leave the store.
Now when a customer tries on a specific item of clothing, it appears in their online shopping cart. Fabletics is not so concerned with where the purchases are made. This is because retail is just another example of their exemplary customer service.
In Conclusion — the e-commerce giants are huge and their power is ponderous. But as you can see, it is the little innovations and good ideas for improved customers service and brilliant industry insights that can flip the board in favor of the little guy.