Fabletics is owned by the online retail giant, JustFab. This brand is fronted by Kate Hudson. Even though it has been around for just a few years, it is already being seen as a direct competitor to retail giants such as Amazon. There are many reasons behind this.
The main reason is that Fabletics is another name for good quality workout clothes. There have been no compromises here. Since this is being marketed as a high-end brand, hence quality is of paramount importance. These are expensive clothes but these are being labeled as value for money.
The brand is well aware that busy and well-to-do people opt for such workouts. Hence Fabletics is focused on that segment. Next, they are making use of reverse showroom technique that appears to be working out well for them. Typically customers visit a site or showroom first. If they like the stuff, they buy it. In case they like the deals and other offers, they decide to opt for membership in order to save money. This is the last stage.
In case of online shopping, customers are browsing a lot. But that does not mean that they will purchase too. Rather, they browse; select what they want, and then purchase online or offline depending on where they can find the stuff at the lowest price.
In case of Fabletics, they are focused on making the customer their members first. Hence once people visit their site, they need to go through a lifestyle quiz. The site tries to understand their preferences this way. In fact, even if a person visits their physical stores that exceed 17 in number today, their purchases will be updated on the site too. This way Fabletics is trying to know the customer’s preferences. After the survey has been done, that person receives a free gift from Fabletics based on their preferences.
The customer will try on the free gift and will be ready to take on the VIP membership in order to avail of the exciting offers and rebates. This way the customer becomes a member even before the browsing has started.
In order to enhance customer shopping experience, Fabletics will offer clothes based on the customer’s preferences. This is like providing personalized service to customers, both online and offline.
There is a monthly subscription fee to be paid for the VIP membership. But this is offset by the exciting rebates being offered. Also, any new trends entering the store get communicated to the customers soon enough. This way they are not losing out anything.
Still, this does not mean that customers have to buy something each month. In fact, they have the convenience of not paying monthly fee for those months in which they do not plan to buy anything. All that they have to do is to inform the site well in advance about their plans for the month.
This is a business strategy that is working out very well for Fabletics. They are now focused on opening out more physical stores throughout the country.