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WHY FABLETICS HAS GROWN INTO A $250 MILLION BUSINESS IN THREE YEARS

It is always said that customers are the center of any business venture. As cliché as that may sound, it is completely true because if a customer is satisfied with the services or the products offered, then they will have a reason to return. As technology changes, businesses need to find ways of using it to ensure customer satisfaction and thus retain them. Fabletics has taken customer focus to a whole new level through their use of reverse showrooming technique.

Contrary to most stores which stock just anything, Fabletics stocks commodities that their online customers like. It uses the online data presented by the customers when setting up the accounts to stock the pop-up stores. This ensures that the preference of members in a given locality is considered in the local stores. They have made a direct connection between the physical stores and the online store. As such, if one tries an item in the stores, it is added to their online shopping cart to ensure consistency. Additionally, at the store a customer is shown products that are recommended on their online profile which saves time. This has ensured that 30-50% of the people visiting the stores are their customers and another 25% become members after visiting their stores. This technique has enabled Fabletics to build relationships with its customers through showing reliability and consistency.

Fabletics began as a subscription based online retailer of women sportswear. It was founded by Kate Hudson, Adam Goldenberg and Don Ressler. It was launched in October 2013 when the three identified a gap in the activewear market whereby luxurious, stylish and high quality gear was not accessible at fair prices. They therefore set up a platform where customers would make customized purchases. Recommendations are made based on one’s lifestyle and preferences. It then matches the global fashion trends to the preference of its users which ensures customer satisfaction.

Through use of membership and personalization, Fabletics has managed to offer quality products to its clients at half the price offered by competitors. It has grown tremendously in the three years that it has been running. Its revenue has increased by 35% each year and has grown into an over $250 million business. It has also increased products to include dresses and swimsuits for women. In June 2015, it launched the men’s activewear line under the brand FL2 with Kate’s brother Oliver Hudson as its face. The company has sixteen stores in areas such as Illinois, Hawaii and Florida. It plans to add more stores this year. Besides its great presence in the United States, it has also gone global as it makes sales to the United Kingdom, Germany, France, Canada and Australia.

Fabletics believes that through the use of technology and innovation, they can understand their customer and know them as individuals. This ensures that they offer them the best quality based on one’s tastes and at fair prices. As a customer, there is no better place to shop. Next time you need sportswear, go to Fabletics.

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