Brick and mortar clothing retail outlets have experienced serious declines in the wake of consumer purchasing migrations to online giants such as Amazon.com. Price conscious customers are able to use stores to try on the outfits that they purchase at large discounts from web-based retailers.
By tightly coupled integration between its retail outlets and eCommerce store, Kate Hudson’s Fabletics makes effective, competitive use of reverse showrooming. The internet-based athleisure wear startup offers a unique, high-quality product-line supported by profile-based, personalized fashion technologies.
New members fill out a Lifestyle Quiz that matches their responses with the company’s offerings best suited to their needs. Members receive several benefits proportional to the level of their profile completion. Promotional offerings, a personal monthly boutique newsletter and styles matched to the member’s tastes and preferences are only a few of the benefits available to quiz completers.
When a member walks into one of Fabletics’ retail stores, the mobile application takes note of the outfits that the customer tries on to offer a non-invasive reminder to the customer at a later time. With between 30 and 50 percent of customers entering one of the stores already being a member, customers experience a sense of strong matching between their preferences and the selections that they are recommended.
Hudson states that because of the way that the Fabletics purchasing works, that it makes no difference whether the customer buys the item in the store or from their website.
General manager, Gregg Throgmartin points out that it is the firm’s membership model that enables them to deliver personalized offerings and latest trends and fashion styles to their customers at less than one-half the price of their competitors.
This technique has worked well for this new online fashion retailer.
In the slightly more than 3 years since it was founded, Fabletics membership has grown to over 1.2 million and is increasing daily. The company’s highly-effective membership-based sales strategy has been responsible for its recent revenue growth of 43 percent. This year the firm anticipates upwards of $250 million in sales.
Fabletics expects to add 12 additional retail outlets to its 22 in California, Florida, Hawaii and Illinois.
Fabletics was founded n 2013 by Don Ressler, Adam Goldenberg and Kate Hudson. The online clothing retailer offers outstanding-quality activewear to support the needs of today’s woman’s active lifestyle from every activity from “yoga to pilates” and in every setting from the office to dinner.