Succeeding in the fashion industry is quite difficult since Amazon controls up to 20% of the e-commerce market. While most companies may have difficulty competing against major retailers such as Amazon, Kate Hudson’s company Fabletics has been the exception. With a company that is growing and making up to $250 in annual revenue, Fabletics has been able to establish itself as one of the leading fashion retailers in the United States. One of the keys to this company’s success is its subscription model of selling clothing to consumers. The way this particular model works is that it combines the process of selling and the convenience of a membership. As a result, consumers are often in position to consider and make purchases on a regular basis. The combination has proven to be very effective when it comes to consistently making sales.
Over the years, well known high value brand name merchandise has been determined by both price and quality. However, this is no longer enough to meet the needs of consumers and enable retailers to be successful. Nowadays, it is important for companies to provide a satisfactory customer experience, provide brand recognition and also unique design in order to sell merchandise and succeed. Fabletics has become a leader in using this new model in the retail industry. It has adopted a model similar to companies such as Apple in positioning itself as a membership brand instead of a physical brick and mortar retailer. While it specializes in membership sales, Fabletics will look to open up a number of physical store locations within the next year.
The secret to Fabletics’ success has been it’s development of a modern high value brand. Its membership model has been able to make Fabletics one of the more personalized retailers in the industry. This company emphasizes service that is personalized and therefore compels consumers to regularly purchase items from it. Along with being a very personalized retailer, Fabletics also offers prices that are among the most competitive in the industry. Therefore, a number of consumers have been very satisfied with the company and the products it offers.
Kate Hudson started up this company three years ago with the intention of providing a low cost athletic apparel brand. Fabletics offers a wide selection of clothing that women can wear for athletic activities. The selection includes items such as leggings, sports bras, long sleeve shirts and jackets. Along with quality apparel, Fabletics also offers a number of its products in a variety of designs. Hudson developed the idea to sell products to consumers through a membership model. This would allow consumers to buy products frequently as well as take advantage of a number of discounts. What has made this company successful has been its use of the reverse showroom technique. This technique emphasizes having consumers browse products online and then purchase offline. As a result, Fabletics has been able to emerge as the leading retailer in women’s athletic apparel.