Kate Hudson’s Fabletics is succeeding in Fashion by growing its business using its membership model. In three years, the firm has grown and expanded to become a $250 million business. Amazon, an e-commerce giant, is currently controlling 20 percent of the global online fashion market. The simple premise used by Fabletics is that customers prefer brands that are full of inspiration. Therefore, mixing this with membership models and convenience shopping leads to a powerful combination, which is what Kate Hudson’s Fabletics is practicing.
Currently, things like customer experience, exclusive design, brand recognition, or last-mile service determine high-value brands as per the modern-day consumer. The previous high-value brand determinants were price and quality products. Today, these two determinants are no longer the only things consumers look for in a good brand; thus, they don’t guarantee success or provide a competitive edge anymore.
Comparing themselves with Warby Parker or Apple, Fabletics’ positioning and strategy have rewarded them with a huge subscription base and growing sales. As a result, they are planning to open more stores this year, adding to the sixteen presently operational in places like Illinois, California, Florida, and Hawaii.
Gregg Throgmartin, the GM of Fabletics, said that their membership model is the secret that allows them to offer trendy clothing and personalized service at lower prices compared to the market and their competition. He believes that when you know what people want and who they are, it becomes easier to make them happy.
Fabletics’ Physical Stores and Reverse Showrooming
Unlike others who are discouraged by Showrooming, Fabletics promotes reverse showrooming. As a result, they have changed the model to their advantage. From the start of their operations, Fabletics identified the limitations of showrooming, where people browsed stores only to shop elsewhere, and came up with reverse showrooming.
Fabletics’ current strategy helps them acquire and retain relationships, have better knowledge of the market, and be relied upon by consumers through social activities and events. Consequently, twenty-five percent of those individuals who walk through into their stores join the company’s subscription membership model, and another thirty to fifty percent of shoppers are already members.
Fabletics is not concerned with where the customer is shopping; they believe that retail is a different element of service. When customers buy and try articles of clothing, they are added to their online shopping cart.
Teri Hutcheon, a reviewer of Fabletics brand, says that when you join Fabletics, you need to survey the styles of outfits that suit you, after which, workout outfits like (tanks, capris, or shorts) are identified for you. She believes that the quality of Fabletics’ clothes is worth their price, which is better than she expected. Moreover, there are various impressive styles, which according to her, everyone could find their favorite style.
Hutcheon further believes that Fabletics is easy to use, and orders are easy to place through its easy-to-navigate website. She likes the subscription model offered by Fabletics because customers are sent curated articles of clothing on a monthly basis and charged at most $59. She also likes the occasional discounts offered by the brand.