Fast growing subscription Activewear Fabletics has Amazon on its sights as it looks to break ground in the lucrative e-commerce fashion market. According to an article published in Forbes on November 16, media and emerging technology author Paul Armstrong extricates the story behind Fabletics runaway success as it strategizes to take on Amazon, which currently controls 20% e-commerce fashion market. He reveals that the celebrated actress and fashion icon, Kate Hudson’s business has grown into a $250 million corporation in just 3 years, thanks to its highly successful subscription mechanic of selling merchandise. The subscription mechanic used by Fabletics is built on the premise that customers wouldn’t mind a little nudging if they are inspired by a product. However, market trends indicate that price and quality of goods and services is not enough to crack the market.
This is the reason why the Fabletics strategy also incorporates service convenience and membership to create a formidable selling strategy. The company also recognizes the importance of brand recognition, customer experience, end-user services and targeted design and gamification elements. On brand positioning, the author reveals that Fabletics prefers to liken itself to Apple and Warby Parker. In line with these companies’ expansion strategies, Fabletics has unveiled a comprehensive plan to open more physical stores, which stood at 16 a few months ago. When asked about the Fabletics rise, the General Manager, Mr. Gregg Throgmartin intimated that the company focused on building a modern high value brand from day one. He also attributes the company’s success to the 3-way approach of running physical stores. The strategy encourages reverse showrooming; promoting growth by focusing on people, culture and accessibility and using online data efficiently.
According to Fabletics.com, the firm was established in 2013 as a subsidiary of the TechStyle Fashion Group, formerly JustFab. Before the idea to start Fabletics had come to fruition, JustFab Co-CEO’s Adam Goldenberg and Don Ressler along with Kate Hudson spotted a huge gap in the Activewear market. They realized that the market was replete with hordes of luxury goods, but no affordable, stylish and high quality gear to boot. One year after the company was established; it quickly expanded to Europe, starting in the UK, France and German.
In the same year, Fabletics shed its core focus on women Activewear and accessories by starting a new line of men’s Activewear called FL2. Everything the company does is incrusted in its mission is to develop clothing that inspires people to stay active and feel comfortable wherever they are. In September 2015, Fabletics opened six physical stores in the US, in a push aimed at exploring the promising local retail market. Fabletics opened its first retail stores in malls owned and run by Westfield and General Growth Properties, an excerpt on Wikipedia indicates. The company hopes to add up to 100 stores in the next 5 years.
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