Long are the days when quality and affordability determined a company’s market control in the apparel industry, and Fabletics seeks to maximize on this fact. Despite successfully starting out as an online subscription-based retail company, Fabletics is implementing a reverse e-commerce show rooming strategy by establishing physical stores. The fact that the company managed to organize a $250 million empire in three years shows the potential the active-wear industry contains and why it should be tapped both online and through local physical stores.
About the reversed showroom strategy
When popular brands like Apple and Warby Parker started out as online stores on Facebook, they realized that most of their site visitors went on to buy the products they advertised cheaply elsewhere. They, therefore, set up physical shops where their products could be readily available. Fabletics has borrowed and improved on the strategy.
Not only has the Kate Hudson’s start-up opening local stores in easily accessible regains by most of their customers, but Fabletics has also cut out on the competition by offering cheaper high-quality products. Additionally, the company has invested heavily in site visitor data collection that informs the company’s decision on where to set-up shop and the clothing articles to stock.
How data collection works
Sales are the key drivers of growth, and they are only realizable if the right products are availed to the right people at a convenient location. For this reason, their IG account uses member’s subscription data to determine the store locations. The company then uses the membership preferences, social media sentiments, and real-time sales activities for the locals in identifying the clothing items to stock in these stores.
The innovative data centered method of sales has enabled the company maintain a grip on their subscribers and attract even more subscriptions at the local stores. Kate Hudson, the Fabletics co-founder argues that as much as a half of local customers who turn up for an offline purchase end up subscribing to the company’s sales online shopping experience to enjoy the discounts.
Kate is scheduled to address Recode’s third Code Commerce Event happening this December alongside prominent entrepreneurial minds in the country such as Apple Pay chief Jennifer Bailey and Jack Dorsey. At the event, Kate is expected to shed more light into Fabletic’s unprecedented growth and future prospects.