Fabletics is an activewear brand which was launched by Kate Hudson, whom was recently cast in the film Deepwater Horizon. The celebrity connection has definitely boosted sales, but most interestingly is that they have used a completely new sales tactic to boost their sales and marketing performance. Fabletics as an active wear brand with a message. The idea behind her brand is that it’s designed to fit women of many different body types. She understands how difficult it can be for active wear to fit a woman’s body. Active wear is often not designed to fit a woman’s body properly, and Kate understands that one woman may wear clothing differently from another woman.
The reverse showroom technique is a different business model that her company is using to beat out Amazon’s rock-bottom prices. First, the company is using a membership model to sell it’s products. The reverse showroom method capitalizes on the fact that people whom visit stores often do so to window shop. Thus, the company seeks to enable window shopping rather than discouraging it. Many brands find it difficult to compete in the marketplace where customers can easily buy the same item elsewhere. Fabletics, on the other hand, embraces this phenomenon to ensure that people are encouraged to sign up for their subscription service while they are in the store.
The company also places a emphasis on the right content for their website. The internet can prove to be a great source of data about what local consumers are looking for, so they gather this information in order to determine what might be popular in the store. Everything, including social media sentiment, is monitored by big brands to ensure that Fabletics is able to get as much attention as possible. Growth means that the brand is also accessible, and is able to capitalize on new relationships with their customers. They are also in the business of mining information around their local area to make sure that they are staying competitive.
The membership model is quite popular among consumers, and still allows consumers to have the flexibility they need in making their purchases. Fabletics does not force members to buy product each month, as their customers can easily choose to skip over a month if they decide they don’t want to buy anything. Cancellation is also a snap, and the company provides a phone number which customers can use in order to cancel their orders.