The fashion industry has steadily been changing with time hence creating the need for stores to be dynamic so as to retain their market share. Kate Hudson is a Golden Globe-winning actress and entrepreneur who co-founded Fabletics together with Adam Goldenberg and Don Ressler. Kate has the vision to help women keep fit and achieve their passion but noticed that there was a shortage of affordable, high quality and stylish workout clothes for both males and females. Using their combined effort, they then came up with trendy athleisure to be worn for workout or casual wear. Over time Fabletics which started out as an online store has introduced new products such as socks, caps, gym bags, water bottles, gloves, and hair bands among others. Founded in 2013 Fabletics has grown to become an innovative and high-quality sports brand with a large digital audience.
A subsidiary of JustFab, Fabletics started as a subscription-based retailer but has since expanded into brick and mortar with more than 20 physical stores currently. The company has been around for three years has managed to increase its revenue by 35% each year amidst the prevailing market conditions where big names like Amazon control a significant chunk of the market share. It currently has a valuation of $250million and has reported shipments of more than one million. Part of the reason Fabletics have made inroads quickly is that of their efficient use of reverse showrooming. Owing to the unique way they started out they are affected positively by browsing because their relationship with customers registered as members. The result is that it then does not matter whether the customer buys online or at the store as it is just another element of service. This convenience and membership perks are some of the things that are making Fabletics to succeed albeit being a simple premise.
To compete effectively in the fashion industry is no longer based on a brand being quality, trendy and expensive as the current economics and peoples’ preferences have changed. Modern customers are now into quality service, customer experience, and exclusive design. To stay relevant one has to go the extra mile. To understand their customers better and know what they like Fabletics gives free membership to their clients. The subscription enables them to offer personalized services in regards to style and size of their customers. Once one is registered as a member, they undergo a survey to tell their lifestyle, fashion preferences and work out details. This information is used to understand the customers well and design personalized outfits for each member every month. For the first month, the two-piece outfit with a value of $49.95 but one is required to pay only $10. For the rest of the months, they have an obligation to pay $49.95 which is normally half the price of the outfit offered and if members skip they are charged the amount which turns into a store credit. VIP members get free shipping and free returns for commodities over $49.95.