Fabletics has managed to grow a business worth $250 million in just three years in a market that is dominated by a single player. Amazon controls the e-commerce sector of the fashion market by Fabletics has gone against the odds through its ‘activewear’ movement which sells clothing using a subscription mechanic. The secret to this success is its provision of aspirational brands that customers have always loved due to the powerful combination of convenience and membership.
Traditionally, high-value brands are identified by the quality and the price of the items. The modern-day consumers, however, are moving away from this combination and are increasingly starting to consider such things like customer experience, gamification elements, exclusive design and last-mile service as the determiners of high-value. The strategy and positioning of Fabletic are working out well for their fashion membership brand since it is planning to add more stores in such places like Illinois, California, Hawaii, and Florida.
The General Manager at Fabletics shades light onto the reason behind its success. According to Gregg Throgmartin Fabletics thrives on the notion that it has been putting up a reimagined and modern version of the high-value brand. The membership model of Fabletics allows it to offer its customers personalized services as well as trendy fashion items at prices almost half that of their competitors. Knowing what the people and what they want is the secret of making them happy.
Kate Hudson describes Fabletics as an athleisure brand that is fashion-forwards and has been empowering and inclusive since it was founded in 2013. At the time this company was being founded, there existed no stylish, quality and affordable priced athleisure brand hence it enjoys the first-mover advantage. The market just had an overpriced gear for women’s workout. Kate Hudson is optimistic of even more success in the coming years with Fabletics even when the pessimists call the athleisure a dead brand.
According to Kate, Fabletics has viable plans for opening more brands before the end of this year and the coming three years. Currently, it has 22 stores in total, but a dozen others are on course to be opened in 2017. It will depend on various factors like its data-driven approach when it comes to manufacturing and their increasing membership base to continue its growth. Fabletics’ partnership with such celebrities like Demi Lovato is also poised to help increase its growth in the coming years.