Fabletics Brand Uses Reserve Showroom Technique to Succeed in Fashion Industry

 

Showrooming the latest fashion designs is one method designers and brands introduce their products to retailers and the public worldwide. One of the fastest growing brands, Fabletics uses a different technique, reverse showrooming because the showroom method actually doesn’t attract average customers. Today, consumers looking for high-quality fashion at lower prices are able to do so online or at physical stores. According to Forbes Magazine, Amazon has gained approximately 20 percent of the fashion e-commerce market, as of November 2016. The Fabletics Brand is taking on the corporation and succeeding in global and national markets with revenue reaching $250 million.

Fabletics marketing strategies differ from competitors in various ways, including its membership & subscription model and reverse showrooming technique. In 2016, the brand is receiving vast growth in sales and expansion, reaching markets in Germany, France, and other countries. Store locations continue to open this year in the United States and an estimated 75 to 100 are planned to open within the next five years. During 2016, physical stores opened in Colorado, North Carolina, and Nevada. The brand’s strategies have placed Fabletics in a positive financial position to expand and attract more customers and members.

The reverse showrooming method Fabletics uses is the way the brand does its physical stores compared to other fashion brands. Forbes reported that 30 percent through 50 percent of the brand’s customers are members who visit store locations. Approximately 25 percent of walk-in customers who visited physical stores became members, proving reverse showrooming is effective for attracting shoppers. The brand continues to strategize their marketing goals by collecting personalized data to make shopping convenient for their loyal customers. Fabletics reversed the showrooming model by turning traditional in-store browsing to create and build relationships.

In July 2013, Co-founders Kate Hudson, Don Ressler, and Adam Goldenberg founded Fabletics and launched the brand three months later. When the brand was formed, the focus was mainly on women’s athletic wear for jogging, workout, gym, and yoga. Now, there’s a men’s line comprising of active wear that was launched in 2015 and uses the membership subscription model, as well. Remarkable growth has happened in 2016 for the brand, including the launch of swimwear and dress collections. Fabletics offers reasonable cost, quality, and stylish athletic and casual apparel for women and men.

Kate Hudson’s fitness brand is an affiliate of TechStyle Fashion Group, formerly known as JustFab, Inc., the inventor of membership subscription fashion. Becoming a VIP member at Fabletics comes with rewards of savings from 40 percent up to 50 percent, special promotion invites, and earning points. Members can use the points earned as cash to purchase free active or casual clothing from Fabletics. Each month the brand offers promotional specials for customers who become new members. During the month of December, new subscribers are offered two pairs of leggings for $24, which is valued little over $100.

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