Fabletics is an upcoming company that has recorded immense sales growth in only the first three years of its opening. Initially, Fabletics only marketed women athletic and sportswear, which was promoted by celebrity, Kate Hudson. However, recent success of the company has prompted the management to add swimwear, menswear, swimsuits, and dresses to its product line. In fact, the business model of the company is challenging online giants like Amazon, who must be keeping a keen eye on the sales model of Fabletics. While all eyes are on Fabletics and its growth, it is also true that the distinctive competencies of Fabletics are hard to imitate.
Actually, the model is based on reverse showrooming technique. The concept of reverse showrooming is not knew as it is common among Internet surfers to go online and conduct comparison shopping before buying the product at the physical store. This unique mindset of the customer is hard on physical storefronts who rely on the traditional showrooms to attract customers.
To succeed in this competitive landscape, companies needed to convince online visitors about the quality of the product before they could visit the showroom or physical outlet. Accordingly, it seems that Fabletics has perfected this technique because it took multiple years for the company to gather a loyal following of online customer who are convinced of the quality. After three years of sales growth generating a mind-boggling $250 Million, the company is finally opening physical stores across the United States.
As indicated, the initial success of Fabletics is mainly attributed to the distribution of catalog, which offered value-based proposition to its clients. Members could easily subscribe to the catalog convincing them to buy clothes that were almost half the price of the competition. The value based proposition proved immensely successful, which encouraged the management to open physical stores. Currently, Fabletics is busy opening numerous physical stores at prime locations throughout the United States. Shops in locations such as Mall of America ensure that everyone can find the store to try products found, online.
Recent statistics suggest that store openings are as successful as the online model because 25 percent to 50 percent of customers are subscribers. In addition, the company is also seeing huge success in converting walk-in customers to buyers, who adore the membership benefits. Overall, the integration of online and offline channels is working perfectly for Fabletics. Whenever a customer buys something at the physical store or tries a new outfit, the product is automatically added to the online portal of the customer. Doing so, allows the management to present similar products according to the preference of each customer.
So far, the model has worked flawlessly. Already, the company has announced opening of 75 to 100 new stores in the United States. The expansion will be complemented by the addition of new clothing line that includes menswear, swimwear, and dresses.