Kate Hudson’s Fabletics has managed to not only survive in the highly competitive fashion industry but also to thrive in it. With Amazon having a 20% market share of the fashion e-commerce space, Fabletics being able to make $250 in the same market in just three years is a considerable achievement. Its success can be attributed to their unconventional marketing style whereby they use a subscription plan to sell their items to their clients.
In the past, top brands were identified by their price and the quality of the items or services they offered. However, recent changes in economics have rendered this combination null and void. Companies can no longer depend on these factors to make them competitive and give them a cutting edge in the market. Customers now want aspirational brands which challenge them and at the same time provide convenience and perks like membership. That is a winning combination for brands, and Fabletics has got it right.
By stepping away from the traditional view of high- value branding, Fabletics has managed to create a niche for itself in the athleisure field. Their membership model allows the company to offer personalized service and trendy fashions at a cheaper cost than that of their competitors. This is because it is easier to please their clients when they have their details, know who their clients are, and understand what their clients prefer.
While competitors in the market are feeling the pinch of showrooming, which is the practice of people browsing for items offline only to buy the items at a lower price elsewhere, Fabletics has leveraged this to their advantage due to the way their marketing model is set up. For Fabletics, where the customer makes their in-store purchases is not important because retail is just one of their many elements of service. Instead, they are more focused on building client relationships and being more reliable by knowing their local markets better through activities and other events. Therefore, 30-50% of the prospective clients that visit their stores are already members. Another 25% of these prospects become members while at the store. While shopping, if a customer tries out an outfit, it goes to their online shopping cart too. All these make Fabletics turn showrooming into a positive for them instead of a negative.
Kate Hudson, a Hollywood actress, is a firm believer in the brand, its products, and what it stands for. A fitness enthusiast herself, she believes in inspiring and empowering women to be their best. Kate wears the brand items and is an aggressive ambassador for the brand. She is keenly involved in the daily running of the business, from handling the design process to reviewing budgets and choosing the best social media strategy. Kate has also ensured that there is clear communication between the brand and its clients.
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