Three years since it was established, Kate Hudson’s Fabletics is taking over the over the American fashion industry against all the odds. How the business grew to its current value of $250 million in an industry hugely dominated by bigger companies like Amazon is exceptional– just to say the least. The main strategies behind Fabletic’s commendable growth rate include the customer subscription model, strategic physical stores positioning, and the reverse showrooming.
The Subscription Model
The customer subscription model is all about client convenience. In this model, customers subscribe for membership with the company. Upon becoming members, the clients are accorded a chance to purchase fashion products from Fabletics in a convenient way. This strategy is a sure way of retaining customers and creating a long-lasting relationship with them since it enables the company to give personalized services for each particular client.
By Fabletics employing this technique, it showed that the firm was on point for as far as new trends in customer preferences are concerned. Unlike traditionally when all that mattered to a customer was product quality and cost, the customer of today is more interested in product design and shopping convenience above everything else. The quality of today’s product depends on how attached clients are to the brand, how sophisticated its design is, and how convenient it is to shop for the product. In the subscription model, Fabletics got it right.
Over the last three years, Fabletics has opened physical shopping stores in sixteen strategic regions among them Illinois, California, Florida, and Hawaii. After realizing immense success from the stores, the firm is already gearing up towards opening several other stores in other states of the U.S. Again in this strategy, Fabletics got it right.
Most business people avoid showrooming for they see it as more of damaging to their brands than propels them. Their arguments are advised by the fact that some people camouflaging as potential clients browse offline just to get ideas of the product prices and then shop elsewhere. For Kate Hudson’s Fabletics, it took the strategy and remodeled it to their advantage, coming up with reverse showrooming. The firm is now flying high with that new strategy.
Teri Hutcheon is a blogger, and a Fabletics’ VIP subscribed member. She recently posted a review article on her official blog, A Foodie Stays Fit, to narrate of her experience with Fabletics. According to her, being a subscribed member comes with several advantages, including discounts, monthly customized outfits, and cheap & quality products. She encourages her readers to try out Fabletics’ subscription membership.