Fabletics Uses Innovative Membership Subscription Model to Drive Sales and Expansion

Fabletics have innovatively come up with successful sales and marketing techniques centered on their online subscription models. Since the company’s inception in 2012, it has grown into a global e-commerce fashion company with a $250 million business – in three years. This is not a small achievement considering that any expansion in this competitive market category is limited because of fierce competition from Amazon, an e-commerce giant, which controls 20 percent of the online fashion market.

 

Fabletics realized that product quality and prices no longer determine high-value brands. Instead, the modern consumer takes other factors into consideration due to a shift in economics. These factors include customer experience, exclusivity of designs, gamification elements, and last-mile services. So far, Fabletics’ strategy is paying off as the company is planning to open new physical outlets nationwide.

 

General Manger for Fabletics, Greg Throgmartin, thinks that the real secret behind the company’s success lies in their reimagined version of what constitutes a high-value brand. Greg postulates that from inception, Fabletics thought out of the box and decided to tailor its membership model to offer a personalized shopping experience as well as on-trend fashion.

 

Reverse Showrooming

 

Fabletics is keen on using a reverse showrooming technique to use physical outlets to its advantage. The company focuses on growing its brand, knowing local markets through activities and events, and building relationships. Thanks to its efforts, many of the people who go to its stores are already members and at least 25% walk out as new members. What’s more, the company ensures that all clothes that customers try on in-store are added on their respective online shopping carts. This has made retail another service element for the company.

 

Using Shopping Data and Focusing on Culture, People, and Accessibility

 

On top of the reverse showrooming technique, Fabletics appreciates the value of data and uses it to its advantage. It collects and uses local data on preferences, trendy lines, and customer needs from various sources including store heat-mapping, real-time sales activity, and social media sentiment. It later uses this information to elevate customer satisfaction.

 

Fabletics tackles its growth and expansion-related challenges by balancing consumer education, lifestyle, and customer experience. Shawn Gold from TechStyle Fashion Group said that growth is heavily reliant on offering excellent products at great prices.

 

Fabletics is a nimble, risk-positive, and data-aware brand that appreciates the value of smart distribution techniques, innovative membership programs, and fast purchase options. Furthermore, by investing in retail outlets, Fabletics shows that it is ready to use every tactical advantage to provide excellent consumer experiences offline and online.

 

Review from A Foodie Stays Fit blogger

 

Blogger Teri Hutcheon wrote an unbiased review describing Fabletics’ products and service-delivery as top-end. She said that she was satisfied with the company’s membership structure because it was affordable, had numerous perks like sales discounts, and sent curated outfits to all its members on a monthly basis for only $49 to $59. Furthermore, she liked the products sold by the company because they were of high quality, trendy, and easy to use.

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