When people talk of Amazon, the always talk of the things online and how they can purchase them. Fabletics works on a similar business model. However, Fabletics focuses on both online and offline stores. It started as an online business retailer. Their website focused on a different approach to customer relationship. A subscription model was used to get clients and keep them.
Customers have to sign up to Fabletics and pay a monthly subscription fee to enjoy its offers. During the sign-up steps, the company takes a survey to identify a customer’s fashion requirements. The firm then personalizes products that the customer sees on their first page. While one can purchase other items, the fashion items advertised on the first page are usually ideal. Customers have a great ease of shopping as they do not have to look for items in hundreds of pages.
Fabletics has adopted a business model that has seen compete with giants in the fashion industry. The firm has been able to compete with Amazon in the activewear fashion space. The subscription business model has been the most advantageous step by the company. The model works well as customers can pause a subscription if they do not want to purchase. One can skip the subscription for a month of two. It is flexible because someone may be away and not want items delivered when they are not at home.
While many industry experts thought that the membership model was highly-priced, it has turned out a success. The firm has earned enough profits to open several offline stores. Members have the option to purchase online and pick clothes the same day in offline stores. Members can fit the clothes in offline stores and select the best item in the online platform.
The showroom business has been disadvantageous for companies that operate either offline or online. A customer can look at a personalized outfit in a nearby store then purchase it from a cheaper store elsewhere. However, Fabletics business operation focuses on reverse showrooming. Members get discounts on clothing items. The firm has managed to retain customers that purchase from the company every month. Such discounts and offers are something members can never get from Amazon or any other online shop. The idea that members can window shop in offline stores and purchase online is brilliant. Even if they do not buy online, the company still benefits regarding sales.
Kate Hudson is the mastermind of Fabletics. She has taken on Amazon through the activewear niche. The firm sells clothing items such as sports bras, yoga pants, and tank tops. All these items are sold at discounted prices on a subscription basis. Kate Hudson has managed to infuse the brand with aspiration and inspiration. She has sold her idea to the community, and customers have loved it. Kate Hudson has grown her business to become a $250 million business in a short span of three years. Even though Amazon controls close to thirty percent of the online fashion market, Fabletics has proved itself as a worthy competitor.