Reverse Showrooming: Fabletics Strategy Aimed at Wooing Customers

It’s not an easy task for any entry-level business to take control of the market. However, it is the case for Kate Hudson, Fabletics. The enterprise penetrated into the fashion business at a time when Amazon held over 20 percent of the e-commerce market. However, Fabletics managed to grow to a net-worth of over $250 million in three years. In its mechanisms, the company adopts a subscription model of selling. Customers are therefore encouraged to take a Lifestyle Quiz on their website. The quiz goes further to help the company identify your needs. Fabletics specializes in the production of active-wear with unique designs aimed at pushing the individual’s desire and be inspirational. Combine the two with convenience and subscription and the result is irresistible.

 

Gone is the time when a high-value brand was solely dependent on price and quality. Today, a shift in the economy has shifted the parameters of the definition. As a result, customers are looking for last-mile services, brand recognition, exclusive design, and gamification. All these elements become an essential factor when determining a high-value item. The company’s expansion has pushed them to add sixteen physical stores. The stores will serve to complement the already open shops in Hawaii, Florida, and Illinois just to mention but a few. Perhaps the big question lies in the secret formula. According to Gregg Throgmartin, the idea behind their growth lied in redefining the high-value parameters. Additionally, the membership model allows the company to serve customers on a personalized level.

 

On the other hand, Fabletics have adopted a different method of doing physical stores. They have brought up the idea of reverse showrooming. Unlike its counterparts who practice showrooming, a technique that results to browsing offline and buying elsewhere, their reverse method engages the customers and helps to establish a long-lasting relationship. As a result, half of the customers in their stores are registered members while an additional 25 percent register during the visits. Fabletics see’s retail as just another element of service.

 

It is impressive how Kate Hudson combined acting with business. Together with the other co-founders, Kate Hudson has managed to build a brand that represents and empowers women at all levels in three years. For an actress with a little background knowledge of business, she has genuinely represented the power of innovation in women.

 

According to Throgmartin, Kate Hudson is the face of the Fabletics brand. Kate faced each day with enthusiasm as she worked towards growing the company. Hudson participated in all aspect of the business including budget preparation and review. Today, she is extremely involved in the design process. As a result, the brands available in the market are fresh and trendy.

Fabletics Opens First Florida Store

Fabletics, the Hate Hudson-owned athletic apparel line, has opened its first store in Florida. The store is located at the Mall at University Town Center in Sarasota, Florida.

Fabletics stores sell a variety of workout, yoga, running gear. While the clothing is stylish and high quality, they are offered at affordable prices, with most items selling for under $50.

Hudson, an actress and fitness enthusiast, launched Fabletics in 2013 as an online store on fabletics.ca. The first brick and mortar store was opened in 2015 and has steadily been growing since. Currently, there are 16 Fabletics stores spread throughout the United States.

The Sarasota store will officially hold its grand opening September 24th from 11am to 2pm. There will be a DJ, champagne, and the store will host a giveaway for those in attendance on thekrazycouponlady.com. All shoppers will receive a 20% discount and a free pair of black Salar Capris will be given away to the first 50 shoppers who spend a minimum of $69.

Fabletics was started to fill a gap in the activewear marketplace. While there were plenty of luxury brands, with high price tags, there was not a line that provided both high quality and an affordable price. And consumers have responded positively.

The El Segundo-based company recorded revenues of $150 million in 2015, and they plan to open 75 to 100 new stores in the next three to five years.

According to JusFab co-founder and co-CEO, Adam Goldenberg, the brick and mortar locations will mirror the online experience. Fabletics is a subsidiary of JustFab and Goldenberg teamed with Hudson to launch Fabletics in 2013.

The company views the store locations as showrooms for the items that consumers see online. Currently, nearly 40% of in-store sales come from consumers who are already members of Fabletics’ VIP subscription service.

By aggressively opening brick and mortar stores, Fabletics is taking direct aim at its main competitor, lululemon athletica. According to Goldenberg, the company will attempt to open new stores directly near current lululemon locations. He states that they do, “very, very well” when they are located near their competitors.

Fabletics will not be the only activewear chain doing business at the mall. Other stores include lululemon athletica and Six:02.