Fabletics Stays Competitive in the Amazon Age Through Innovation

Brands are constantly looking for new ways to find their consumer base and attract them. For big names, online marketplaces like Amazon, which owns 20% of the fashion market, have made that easier. For startup businesses, it presents a challenge.

 

Fabletics is a startup fashion retailer that does things a little differently from the competition. A subscription service dedicated to providing high-end activewear at affordable prices, Fabletics has drafted some star power from actress Kate Hudson into its ownership, making this a business interested in understanding their subscribers and what they want. The company has sought to make itself one that not only knows who they are selling to, but to engage those consumers with a combination of game theory and comprehensive customer service. It’s a strategy that seems to be paying off as physical stores pop up in Florida and California.

 

General Manager Gregg Throgmartin sees Fabletics as a success because their business model has allowed them to undersell the competition. This is made possible by applying consumer data to better designing operations. It’s a method that relies on three main focuses.

 

In the case of physical stores, many find themselves losing money despite not losing foot traffic. This is the result of customers browsing in person at one retailer, then going to purchase from Amazon or another online marketplace as a significant discount. Fabletics’ application allows them to turn browsers into buyers through engaging events at pop-up installations. Fabletics has found that using these events to apply game theory engages subscribers in a very real way, with 50% of attendees being subscribers already and another 25% joining them when the event is over.

 

While having a tastemaker like Kate Hudson on staff helps in promoting new activewear that subscribers want, Fabletics doesn’t ignore hard data. Using internal data to increase brand awareness and growth means Fabletics uses its online presence to build consumer trust and satisfaction by tracking what they’re looking for most and making sure its available online and in person. Dustin Netral, Senior Vice President of Operation, says that the retention of consumer data is to make sure that Fabletics never falters in giving their subscribers what they want most.

 

Utilizing data has been part of the Fabletics strategy since its conceptual phase, and it will be instrumental as the company moves forward. Applying data in this way is becoming more common among startups, and Fabletics is experiencing unprecedented competition in this stage of its life cycle. But the company remains confident with its approach to having physical and digital presences to make sure that their subscribers always have available to them the things they want most.

 

About Fabletics:

 

Fabletics is the brainchild of Just Fab Inc.‘s Don Ressler and Adam Goldenberg. In 2013 the business began in earnest after actress Kate Hudson joined them to better situate the business in the niche fashion market of activewear.

 

Fabletics brings high-end activewear from notable designers to subscribers at a low cost. By engaging these subscribers with engaging events, Fabletics strives to motive customers and provide the motivation they need to remain active.

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