The fashion industry is one of the more competitive industries in the retail sector. Companies that are looking to sell apparel on the internet will need to compete against Amazon which controls about 20% of the entire market. While many businesses in the retail industry struggle to compete against Amazon, Fabletics has been one of the very few to make as much sales and receive as much revenue. In its brief existence, Fabletics has quickly emerged as a company that makes an estimated annual revenue of $250 million. What has enabled this company to succeed is its model of selling products through a subscription. This model has allowed consumers to buy merchandise on a more frequent basis. With the convenience of a membership, consumers have had many opportunities to purchase apparel and help Fabletics meet high revenue goals.
In the fashion retail industry, factors such as price and quality have always been detrimental to a companies’ success. While this is still true today, there are other elements that make a fashion retail company successful. Any business in the fashion retail industry needs to focus on providing a customer experience that is very satisfying, establish recognition of the brand and also devise a unique design that appeals to consumers. Since Fabletics has adopted these things, it has been able to emerge as the top e-commerce athletic apparel retailer. It has adopted a business model that emphasizes subscription over a brick and mortar store location. As a result, Fabletics has been in position to enable consumers to make all purchasing decisions online and buy merchandise on a regular basis.
What has made Fabletics among the most successful online retailers in the fashion industry has been its ability to establish a high value brand. With a membership model, the company has had the opportunity to make the buying experience very personalized for consumers. With personalization, a number of consumers have been able to make informed buying decisions and also make purchases more frequently compared to other retailers. Fabletics uses the reverse showroom technique where consumers browse items online and then purchase them at physical locations. This model has allowed the company to capitalize on more informed buyers and therefore make sales more consistently compared to other retailers in the industry.
Fabletics was founded by celebrity Kate Hudson who was looking to offers high quality women’s athletic apparel to consumers. After realizing that finding affordable athletic apparel was a challenge for a number of women, Hudson decided to put together a brand that would provide high quality athletic apparel that was cost effective as well as diverse. Her company offers a wide selection of apparel that includes leggings, shirts, sports bras and jackets. With a wide selection of apparel items, women have been able to get stylish clothing when participating in a number of athletic activities.