Kate Hudson’s Fabletics Strategy of Surviving in the Ever Competitive Fashion Industry

Kate Hudson’s Fabletics is currently taking over Amazon, who controls nearly 20% of the online fashion industry. Fabletics incorporates a subscription strategy in selling fitness clothing to its clients. In the past, high-value brands were characterized by price and quality; however, this is no longer a competitive mechanism. Currently, gamification, customer service, exclusive design, last-mile service and brand recognition are the some of the essential elements being considered for what is high-value to the client. Fabletic’s membership plan has been successful and is expected to open more shops to add to the existing ones in Florida, Hawaii, California and Illinois.

 

The General Manger, Greg Throgmartin explains that company’s membership model has enabled them to offer personalized service and trendy fashion at a reduced price than that of its competitors. Most of the companies are disadvantaged by showrooming because individuals will browse offline and then purchase items cheaper elsewhere. For this reason, Fabletics have changed the model due to their initial operations.

 

They could have used the pop-up store model, but their current use of Reverse showrooming ensures they build and maintain relations through events and other activities. As such, approximately 30-50% of their walk-ins clients are already members, w25% of the walk in will become members in the store. Whenever the client tries on a piece of clothing, it goes on their online shopping cart whether they will purchase it at the store or not. At Fabletics, retail is another element of service.

 

A review by Teri Hutcheon, a blogger behind A Foodie Stays Fit website, recommends Buyers who are looking for a great deal for nice style and quality. She also recommends Fabletics since one can go for months without paying a dime until they find clothes that catch their eye. In her review, Teri explained that when joining the membership at Fabletics, one can select VIP membership and then buy their first outfit at only $25 as well as get discounts for la carte items. Besides in a given month, one can get clothing curated for them as well as 2-3 pieces of outfit for $49-59. If one decides not to buy anything during that month, they will not be charged anything.

 

Furthermore, one takes a survey when they are joining. The aim of the quiz is to reveal the types of workouts and the style of outfits one likes. Then at the onset of every month, work outfits are selected for the client. It is advisable to take the lifestyle survey so that one can get the best suited Fabletics apparel.