Fabletics Re-invents the Showrooming Concept to Edge Out Competition in the E-Commerce Fashion Market

Fabletics is in competition with fashion trailblazers such as Amazon who dominate a huge chunk of the e-commerce market. Fabletics understands that strategy paired with knowledge of value is significant in growing their “activewear” movement.

 

Understanding Value

 

Brands have historically been perceived as valuable because of the price and quality of their goods and services. However, the recent economic shift suggests that the pre-conceived concept of value no longer offers the much expected competitive edge. Hence, the guarantee of success for any service provider has been re-directed to the consumer’s perception of value. Customer experience, elegant and unique design and last-mile services are some of the value markers which appeal to modern consumers.

 

In three years, Fabletics grew its brand into a $250 million fashion and marketing business. Gregg Throgmartin, the General Manager of Fabletics, highlighted that the secret behind the success lay in re-inventing and re-imagining a newer version of a “high-value brand.” Fabletics pride themselves in their membership model which enables them to offer personalized services and trendy fashion at lower prices than that offered by their competitor’s. Mr. Thorgmartin further adds that because of the membership technique, it becomes easier to impress people as they will be aware of what they want.

 

Reverse Showrooming

 

This is a uniquely advanced strategy by Fabletics. Showrooming alone refers to the situation where customers browse offline only to purchase cheaper brands elsewhere. As a result, most of Fabletics’ competitors and counterparts are encountering certain sales and marketing difficulty. However, the company’s ingenuity has enabled them to employ a reversed showrooming model. Through the membership strategy, they can fortify their relationships with their clients and get to understand the local markets even better.

 

Approximately 30% to 50% of people walking in Fabletics retail stores are already registered as members. 25% of those who walk in join as members inside the Fabletics’ retail stores. During the shopping process, a customer chooses and tries on an article of clothing which in turn gets reflected in their online shopping cart.

 

Support Retail Strategies for Reverse Showrooming

 

Through Fabletics membership model, the consumer is taken through a brand journey of his/her preference. Hence, portraying the right content in physical stores that reflects in the digital platform becomes imperative. This ensures that physical retail stores will always stock up their inventories with items most likely desired by consumers. These items can be changed to rhyme with shifting trends and tastes.

 

Fabletic’s positioning is paying off as they expect to open more physical stores adding to the currently existing ones. However, as the company evolves, it is projected to encounter new competitors, culture, people, and challenges. The company’s brand is growing with a yearly 35% growth rate. TechStyle Fashion Group‘s Marketing Officer, Shawn Gold stated that growth is delivering quality products at fair prices something that Fabletics have been able to achieve.

 

Fabletic’s Quality Review

 

One reviewer of Fabletics’ leggings said that they are worth the price paid, as the quality was more impressive than initially expected. The customer further states that their texture was thick and had amazing compression since they fit well. Also, the leggings do not fade, and they retain their shape for the long-term. The reviewer also praised the blouses offered as soft and of high quality.

 

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