Kate Hudson’s Fabletics has succeeded in fashion, having grown a business of over $250 million in three years, while competing with big businesses like Amazon, which control 20% of the fashion market. Kate Hudson’s Fabletics main reason for success is the use of the subscription strategy to sell clothes to its customers.
The value of the brands have in the past been defined by the quality and price of the products or services, but a recent shift in the economics declare that the combination no longer guarantees value. However, features like the customer experience, last-mile service, exclusive design, gamification elements, and brand recognition have become the most important determiners of the high-value commodities. Fabletics use these features to offer their customers quality products at a cheaper price.
Fabletic’s strategy of likening and positioning themselves to Warby Parker and Apple is rewarding for the fashion membership brand. That is because the strategy is enabling opening of more physical stores, in addition to the sixteen that already exist in states like Florida, Hawaii, California, and Illinois.
According to the general manager of Kate Hudson’s Fabletics, their secret to success is building modern and reimagined products that define the high-value brand. The membership model also enables them to offer personalized service and the current trending fashion at almost half the price of their competitors. Since, it is easy to meet the needs of your customers and satisfy them fully when you know what they want and who they are. That enables them to offer a wide range of styles from which their customers can choose from.
Unlike their counterparts who are using showrooming, where customers browse offline and later purchase products elsewhere at cheaper prices, Fabletics have reversed the situation because of the extraordinary way they started out. They have made browsing positive with their current measure which enhances them to build relationships, become reliable, and to increase their knowledge of the local market through their events and other activities. Hence, between thirty to fifty percent of the people who walk in their stores are already members and about a quarter of the non-members who walk in the store become members. When a client is shopping, and he or she tries a cloth, the cloth is automatically added to their online shopping cart.
To reduce destroying the customer’s brand journey, Fabletics show the right content both physically and digitally. With the help of local online data concerning the customer’s preferences, physical stores stock items that are appealing to the customers and that are likely to be considered as both tastes and trends changers. Stocking of the stores is based on the numerous inputs like the real-time sales activity, membership preferences for local members, store heat-mapping data, and social media sentiment. Brands are built by combining user preferences with global fashion trends to achieve satisfaction. They also add new fashion ranges and conduct subtle tests.
Fabletics are among the growing brands who understand their consumers. That is achieved by adopting the new type of showrooming and investing in physical retail experience, hence giving their customers an excellent experience both offline and online.