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Strategies being used by Fabletics to Succeed

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In these modern times, it’s very difficult to compete against companies that enjoy the first mover advantage. For instance, competing with Amazon when it comes to fashion e-commerce proves to be very difficult as they own more than 20 percent of the market share. However, there is one person who is proving a hard nut to crack for Amazon, and her name is Kate Hudson. She has managed to develop a $ 250 million business that is competing with Amazon. The good thing about her services is that they are aspirational and simple. The business run by Kate Hudson uses a subscription mechanism as part of its selling strategy, a move that has proven to be very successful.

 

In the past, high-value brands managed to convince followers through the use of quality and price. However, with the changing economic times, it requires more than that to convince customers. This is where Fabletics come in with other strategies such as brand recognition, exclusive design, customer experience and last –mile service. Fabletics even compares themselves with Apple and Warby Parker as they plan to open more physical stores to add to the 16 existing ones. These new facilities will be opened in Hawaii, California, Florida, and Illinois. Talking about the success of the company, Gregg Throgmartin who is a general manager says that the membership model that they have implemented have allowed them to offer on-trend fashion that is personalized. At the same time, Fabletics can offer most of their commodities at half the price that other competitors are offering. He says that the success can be attributed to knowing their customers and what they want.

 

According to the general manager, the company implements three strategies that have proven to be very effective. The first strategy is the use of reverse showrooming. This strategy ensures that 30-50 percent of the people who choose to buy products from them are already customers. On the other hand, another 25 percent will become customers. Regardless of the place where the customer tries an item from, it goes into their online shopping cart. The second strategy is based on the fact that showing the right content digitally and physically is important in the customers’ brand journey.

 

The last strategy focuses on accessibility and culture of its clients. This tactic plays a major role when it comes to dealing with customer education, the balance of lifestyle as well as customer experience. With these three strategies, Fabletics has managed to fight off one of the most successful giants when it comes to fashion e-commerce. Various factors determine how Fabletics stores are stocked. These data may include social media sentiment, membership preferences as well as real-time sales activity and store heat-mapping data.

 

Fabletics was established a few years ago with the help of Adam Goldenberg and Don Ressler. Despite there being a variety of brands that offered various products, none of them offered something high quality and stylish. Since its inception, the brand has expanded to several countries such as Germany, Canada, United Kingdom and France.

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Author:kingsforamerican