Fabletics and Amazon Competing for e-Commerce Control

For a long time, Amazon has monopolized the e-Commerce fashion industry. The Company controlled 20% of the market, and this made it hard for other companies to succeed. However, Fabletics has done the impossible; they have managed to compete with Amazon, and it looks like they are winning.

 

What most Companies failed to do, Fabletics has done by changing the system and applying different strategies. Kate Hudson and her team decided to create a member-based online retail store. Through the system, the Company was able to generate $250 million in sales.

 

Fabletics has employed different strategies to get more clients to join the Company. One of the strategies that they have used is the reverse showrooming.

 

Reverse Showrooming

 

Showrooming is the practice of customers viewing and examining the products on the online retail stores and buying them somewhere else at a discounted price. This system has been detrimental to the success of the various online fashion stores. Instead of hoping for the process to change, Fabltetics has tackled the challenge head on. They have applied the reverse showrooming.

 

They have done so by opening pop-up stores. According to the Fabletics team, retail is another form of marketing. Since their Company is subscription-based, they use the information provided to stock the stores. This has made it easier for the existing and new clients to buy the products. Fabletics has also continued to increase their clientele with this new system. 25% of the new customers have registered to become members.

 

There are other strategies that Fabletics has adopted:

 

Maximizing on the online data

 

It is imperative for one to display the right products. It is due to that the Company seeks to provide items appeal to the customers. All their clients fill out a form indicating their fashion preference. The Company will use the data to provide the customers with what they want.

 

Fabletics continues to gain success, and they are opening different stores in various location. Every territory they go to presents a different set of challenges. Luckily, the Company has established a balance between the culture, consumer education, and experience.

 

About Fabletics

 

Fabletics is an online retail store co-founded by Kate Hudson. When it started, the Company was manufacturing active wear for women. They have, however, expanded the brand and today they offer active wear for men as well as dresses and shoe brands.

 

How it works

 

When you join the Company, you will fill out a form that indicates your preference. If you don’t know what your preference is, you take the Lifestyle Quiz to determine what gear is right for you. Based on the information that you provide, the team will send you an email at the beginning of every month with the latest offers. While it is not mandatory for you to buy the products, you will have to make a decision by 5th of the month. Failure to do so will result in a credit of $49 on your account.