Kate Hudson has something going here. Fabletics has taken the online shopping experience by storm as the numbers don’t lie. Fabletics has grown a business of $250 million in just short three years. This is behind Kate Hudson’s brand and the ability to bring people into a shopping experience that represents high quality and fashionable active wear. Women dig it.
The reverse showroom technique is critical to Fabletics success. Typically customers go to a store to browse and see what they may want. They may even try some of the clothes on but ultimately won’t buy them yet. Later they start to look online for similar types of outfits for lower costs. In the past, customers were loyal to a store but now other services are driving purchases. Fabeltics is working on a different method to bring customers into their mix. As customers learn of this brand they are brought into a subscription based system which allows them to stay on top of a trend. This requires active participation on the customer’s part. Most of Fabletics customers are gained online and then possibly come into a store for further evaluation. A few visit the stores and leave as online subscribers but that is a low number. This concept is similar to Amazon and the Prime method. This keeps you coming back for more, essentially leading you to be a loyal customer.
Fabeltics, as mentioned earlier, sells activewear through an online subscription based program. When you subscribe your first outfit is deeply discounted to get in the door. If you watch online this fluctuates some so be sure to get the best deal you can. Following this your subscription is active and every month a new outfit is released. Between the first and fifth of every month, you need to make a decision to either shop or skip. If you shop you will order the outfit. This is normally $49.95 after the first month. If you skip, you don’t purchase anything. If you remember on the sixth of the month, its too late, your credit card has been charged and you will have credit to order an outfit. This takes active participation or you will all the yoga pants and leggings you will need.
Fabeltics created this service at a great time where active wear can be used for working out or just comfortable clothes relaxing around the house. Giving the customer good prices, comfortable clothing and the ability to choose every month something new is a win-win situation. People come to Fabletics for a specific reason and know they can find something that will fit their needs. The marketing is genius and will continue to grow as more and more women find out about it.