Fabletics: The Successful Strategies of the JustFab Subsidiary

Fabletics has found great success in the span of only a few years. Headquartered in El Segun-do, California, Fabletics is a subsidiary of the billion dollar e-commerce giant online fashion retail company, JustFab. Since beginning three years ago, Fabletics has grown to more than $250 mil-lion and is only on an upward trajectory with no plans to slow down anytime soon. In fact, Fablet-ics is quite the competitor to Amazon, which controls nearly 20 percent of the fashion eCom-merce market. Even though Amazon is having tremendous success in its sales around the world, Fabletics is putting up quite a fight and can maintain an impressively consistent and up-ward sales trend.

 

Since their inception, Fabletics was seen as a high-quality and consumer-centric brand. The combination of their vision and creativity has brought great success for Fabletics. The use of a subscription-based service and celebrity endorsement have attracted and retained a large cus-tomer base. Kate Hudson is not only the face of Fabletics, but she is also a co-founder of the company. Furthermore, Fabletics does an excellent job in offering free memberships, where VIP members get discounted clothing in comparison to its competitors like Lululemon, another company known for its activewear. Along with offering discounted clothing, the apparel sold by Fabletics is designed in such a manner that inspires and pushes customers to set and reach their fitness goals. Having a fit celebrity as the face of the company only further reinforces the company’s inspirational designs and helps to retain a large customer base.

 

With more companies coming along promoting the same products, it is not enough to market good quality and prices. Rather, there are some strategies that need to be enforced for a company to continue to succeed; and, it seems like Fabletics employs all the right strategies including last-mile service, customer experience, brand recognition, and exclusive designs. Incorporating all these strategies, Fabletics has done an exceptional job and now, their online presence is expanding to physical stores across the country. So, how did Fabletics pull off such a feat within three years?

 

The use of “Reverse Showrooming” is one of the success strategies. Reverse showrooming means that customers do not feel obligated and pushed my employees to purchase in stores; rather, many customers already have online accounts set up with Fabletics and simply go into the stores to check the fitting and quality of apparel before they decide to make the purchase online. This use of allowing customers to come in with questions regarding these matters helps to build a strong customer base. Unlike stores that do not have this strategy rely on their employees to make sales in stores and can sometimes be off-putting to customers. Fabletics, using this unconventional but brilliant strategy, has not only removed that problem but has, as a result, helped to create a long-term relationship with customers through its use of a subscription-based service.

 

The subscription service is set up in such a way that customers are asked some questions re-garding their preferences and lifestyle choices that allows a special algorithm system to pick out suggested outfits. If customers like the suggested designs, the personalized outfits will regularly be delivered on a monthly basis unless canceled between the 1st and 5th of the month. This re-curring subscription-based service has brought much success to the company’s sales.