It is very hard to succeed in online stores considering that Amazon controls 20% but Fabletics seems to have changed the game.
Did you know that the reason why the online stores don’t succeed is because of the shopping habits that people have? Most of the customers will visit your website and then visit other physical stores that sell the products at a discount. This has adversely affected the online stores especially when it comes to the sales. This is a challenge that the brand has taken into action and found ways to address it.
The fabletics brand has grown fast and reported around $250 million in profits in three years. This is because they have implemented different strategies. First and foremost, the company operates on a subscription basis. This is how they sell their clothes. Their membership plan helps them to offer personalized and trend products on discount.
They have engaged in the reverse showrooming. This is where they have opened physical stores where their customers can access the different products. They could have just gone ahead and opened pop-up stores, but this would have affected their customer relationships. However, by focusing on the membership subscriptions, they have maximized on sales. They have managed to grow the memberships to around 30- 50% through this system.
Another strategy that they have used is showing the right content on their website. They have used the data that they have collected to enhance the customer experience. They use the online data that the customers provide to show them the items that will appeal to them. Their stores are also stocked with the customer preference.
This is a clothing store that was first started as an online membership-based retail store. However, as they have progressed, the company has started opening physical stores so that they can access to the different outfits displayed on the website. It is a clothing brand that focuses on women sport’s wear. It was founded in 2013 by Adam Goldenberg and Don Ressler in partnership with Kate Hudson who is the face of the company.
With the growth the company has received, they decided to launch men’s line which will be run by Oliver Hudson. In 2016, they advanced and started designing the swimsuits and dresses. According to the Forbes report, the company has grown at a pace of 35% each year in the last three years.
In 2015, the company opened the first retail stores in the Mall of Columbia, New Jersey, St. Louis, Woodland Hills and Cincinnati. They are expecting to open 75 to 100 stores in the next 3 to 5 years.
To become a member of the company you have to subscribe. As VIP members you will receive an email at the beginning of the every month with information about the new trends based on your personal preference. You will then have up to the 5th of the month to decide if you want to buy or not. If you decline to buy, you will be charged $49.95 as store credit