Fabletics: Using Reverse Showrooming to Beat Amazon

By now, you have certainly seen all the Fabletics advertising featuring oh-so-cute Kate Hudson. She’s part owner of this new brand and ready to beat Amazon, or at least pose a threat to Amazon, in their apparel line.

 

What can Fabletics do?

Well, Fabletics can’t instantly morph into a giant such as Amazon. However, Fabletics can use a little creative marketing to lure away customers. The first step of that process is to offer prospective customers a great deal to introduce the product and build interest. To maintain customers after that introduction, Fabletics uses their subscription service.

 

Many people have a bad feeling about subscriptions. Images of plies of unread books, unopened magazines and useless cosmetics fill people’s minds. Fabletics takes on that image headfirst by restructuring subscriptions.

 

A Fabletics subscription is a process controlled by the customer, unlike so many of the unlamented olden days subscriptions. If you don’t want a delivery this month, let Fabletics know and they won’t deliver anything nor charge you for anything. If you don’t love what you are sent, return it for it for store credit or refund. By taking the sting out of subscriptions, Fabletics is making it fun again.

 

How is Fabletics using Reverse Showrooming?

Not so long ago, brands introduced themselves to the public by opening brick and mortar stores. They stocked those stores with samples of their wares to attract customers into their shops.

 

As they did with subscriptions, Fabletics is doing with showrooming. First, Fabletics introduced themselves to the public through a substantial publicity campaign. From there, they developed a base of loyal customers through the subscription process. Now, with loyal customers eager to use their loyalty points and discounts, they are opening stores.

 

Even with stores, Fabletics is doing things a little differently. Rather than opening 50 stores across the country with identical stock, Fabletics is using the data collected in each locality to open a shop stocked with apparel that area will like. This is an ideal way to build on the data collected in the subscription process.

 

Curating Your Collection

Fabletics uses the sales data both to stock the new stores, as mentioned above, and to select clothing for your next delivery. As time passes and you keep and return some clothing, Fabletics adjusts what you are sent to more closely meet your needs and tastes. A Fabletics stylist selects your order each month. Over time, you end up with a collection custom-selected for you.

 

This process is profitable for customers and Fabletics. Customers receive clothing they really like and Fabletics completes successful sales and learns more about their customers each day so they can build tomorrow’s look.

 

Fabletics and Amazon: Let the Battle Begin

Using all of these tools, Fabletics is poised to assault, or at least take a good run, at Amazon’s %20 clothing eCommerce market share. Fabletics may never be as large as Amazon, but neither can Amazon be as small as Fabletics, offering the customized service that is building great loyalty.

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How Athleisure Brand Fabletics Is Winning The Reverse Showrooming Game

If brick-and-mortar stores are the new showroom and are no longer serving as a point of purchase for some customers then digital fitness wear brand Fabletics is choosing to embrace this new development rather than fight it. For retailers that are not digitally native and expect to pull in a lot of revenue from their physical stores the internet is still proving to be a disruptive force. Shoppers are often using all of the channels that are available to them in order to find the best deals that they can. This can mean that they are choosing to visit storefronts not to make purchases but to learn more about products they are interested in by seeing them in person. After they have experienced a product at a physical storefront they might make the ultimate decision to purchase the item but it is not guaranteed that they will be purchasing the item from the store they saw it in. In a move that has probably bewildered many salespeople these inquisitive customers are choosing to turn to the internet to make their purchases. There they can often find more competitive prices than they can at physical stores.

 

Fabletics has figured out how to make this phenomenon work for them by offering exclusive designs on their offline and digital sales channels that cannot be found at any other retailer. The brand also isn’t expecting to necessarily capture all of its customers in a physical store front. In fact up to 50 percent of its customers have already developed a strong relationship with the brand by the time they go to a Fabletics store. According to Forbes.com between 30 percent to 50 percent of Fabletics’ offline customers are also subscribers to its monthly VIP membership program. Customers that are new to the innovative monthly membership program can sign up in-store. Fabletics has chosen to see its relationship between its digital and offline portals as symbiotic and reciprocal rather than being in opposition to one another. These channels can be used to strengthen one another when they are viewed as simply being different kinds of experiences that speak to the wide variety of expectations that customers have for their shopping experiences. As Forbes.com notes the process might be called reverse showrooming where the in-store experience continues to add value because of the exclusiveness of the product and the fact that Fabletics has a strong online presence rather than being a company that started out earning all of its revenue from brick-and-mortar stores.

 

Even though the company was founded in 2013, a mere four years ago this year, it continues to show extraordinary growth. A corporate marketing officer for TechStyle, the company that owns Fabletics told Forbes.com that the company has grown at a speed of 35 percent each year. The growth that Fabletics has experienced has been attributed to the brand’s success at delivering clothing that doesn’t skimp on quality at an affordable price point, its creative talent and the sincere brand ambassador that it has found in its co-founder actress and fitness enthusiast Kate Hudson. Hudson has proven to be a relatable brand advocate whose lifelong appreciation for physical activity, women’s empowerment and health has connected with Fabletics largely female customer base.

Here’s A Run Down On How Fabletics Works

Some may be confused as to how Fabletics works, so here is a quick explanation. Fabletics is an activewear company that sells clothing online as well as in their stores, and no one is required to get a membership in order to buy anything from Fabletics. Those that don’t want a Fabletics membership can simply walk into any of their stores to make purchases as well as making purchases online on Wikipedia.org. Membership to Fabletics is completely optional and only gives additional benefits to anyone who chooses to get the membership. Those who want a Fabletics membership will be able to take advantage of the lower prices in the stores and online.

Becoming a Fabletics member only requires a payment of the monthly fee, which is now $49.95. Every time the fee is paid, the fee will go into the member’s account. Instead of the membership fee being paid simply to be a member, the member is really paying towards clothing, and the $49.95 can be used for any clothing in the store. Those that find clothing that goes over $49.95 can simply add additional monies to their purchase in order to complete their purchase and have their items shipped to them.

Read more: The Only Fabletics Review You Need to Read

Fabletics doesn’t deal in any used clothing only new clothes. Fabletics will have different clothes added to their website on a monthly basis, which gives a lot of additional options to those who are looking for activewear. Although many feel that Fabletics only sells to women, men’s activewear is also sold on the Fabletics website. Kate Hudson is a co-owner of the Fabletics company and has been the main face of the company since it opened. Since Kate wears a lot of the Fabletics clothing, her fashion and style trends have been used to help create the many clothes that are sold on the website.

Anyone looking to sign up as a member on the Fabletics website or in one of their stores can use a debit or credit card to make monthly payments. Each month that a member chooses to pay their membership fee, they must pay using a debit or credit card. It’s possible to skip a month if it’s necessary by opting out of the monthly payment by the 5th of the month. Membership to Fableticss can be canceled at any time, so no one is required to stay a member if they don’t feel the need to.