For any clothing brand, it is often difficult to penetrate a very competitive market. Nowadays, it seems that everyone has started some type of niche. Considering that Amazon also covers every kind of clothing, it is hard to imagine that any new company would give a hard time to Amazon. Perhaps, the only thing that comes to mind is innovation.
Luckily, few companies, such as Fabletics, have devised a model of sales, which is difficult to imitate. In only three years, Kate Hudson’s brand, Fabletics has generated revenue of more than $250 Million. The athleisure brand is in so much demand that it has already rolled out other variations of its products including swimwear, men’s wear, and dresses.
The success of the Fabletics is mainly due to its sales model, which relies on the concept of reverse showroom technique. To understand the sales strategy, it is important to know that Fabletics started as an online subscription based store, which offered exclusive designs at a great value to its members. As the catalog grew, membership also increased because everyone started to associate Fabletics with a brand that sells fashionable sportswear and accessories for women at half the price of its competitors. Every month, Fabletics rolled out new designs and offers that were almost too good to pass away.
The success of the online subscription and catalog model was followed by physical store openings across major cities in the United States. Mostly, these stores are located in prime locations offering easy access to a majority of subscribers. The integration of online and offline methods is an example of reverse showroom technique, which allows customers to try their favorite outfit before buying it. While other stores such as Amazon primarily rely on online sales, the sales strategy used by Fabletics is effective because customers not only get amazing deals using the online subscription method, but they also get to try the outfit.
Once in the store, exceptional customer service and product offerings based on customer preference allows the customer to quickly make a final decision. In fact, the management of Fabletics indicated that anywhere from 25 percent to 50 percent walk-in customers in the store already know what they are looking for because these customers are paid subscribers of the catalog. Interestingly, almost one fourth of first time visitors also get memberships while visiting the store, which allows them to buy clothes at a significant discount.
The integration of online and offline strategy has worked for Fabletics as the brand saw a 35 percent year over year growth. There are in-house media and creative teams, who are actively working on data science and return on investment to showcase the best products at a great price. As for Fabletics, it has plans to open 75 to 100 new stores in the next three to five years. These stores will have modern technologies to complement the online offers. Already, celebrity brother of Kate Hudson has jumped in to promote men’s wear, which is as attractive as the popular women designs.