Fabletics: How They Grow Against Competition

Fabletics is an American retailing website co-founded by Katie Hudson. The company has grown into a million dollar business, despite being established just a few years ago. It is a challenge to open up an online retail shop with the existence of Amazon, which currently owns 20% of the entire online retail industry, but Fabletics managed to get around this issue by working together with Amazon, wherein they allow the retail giant to sell their merchandise. In exchange, Fabletics will be getting the profit and they will be giving a small percentage to Amazon.

 

Another reason how Fabletics manages to survive despite strong competition with other brands is because of their membership mechanic. What happens is that shoppers who happen to stumble on their website needs to become a member in order for them to purchase a product. Some are upgrading their membership status to VIP, which would allow them to get more privileges including sales and freebies. Fabletics has become so successful that they are already opening physical stores across the United States, but still, the majority of their customers are shopping online through their website. Fabletics wanted to deliver excellent customer service, especially to their loyal customers, which is why they are requiring new comers to register and become a member first, so that they can know them better.

 

The physical stores that Fabletics opened managed to retain customers because of reverse showrooming. This method has been dreaded upon by retailed because customers would go inside the store and search for the clothes that they wanted, and once they found out the price, they would leave the store and look for a cheaper alternative. It is a different story with Fabletics. Because most of the people visiting their physical stores are already members, people working at their physical stores already know what the customer wanted, based on their digital preferences. The physical stores also restock items based on the preferences of the customers who are always visiting the site. 30%-50% of those who go inside Fabletics stores are already members, and most of them are making a purchase. 25% of those going inside Fabletics stores are becoming members, after finding out the perks and benefits of being one.

 

Fabletics has revolutionized the online retail industry, and it is expected that they will be bringing in more changes in the years to come. Meanwhile, the heads behind Fabletics are excited to develop some innovation for the company, hoping that it will gain support from the public.

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