Kate Hudson’s Fabletics Drives Sales, Customer Loyalty With Social Data and Reverse Showrooming
Knowing that starting a new apparel line without having a plan to compete with online giants such as Amazon is simply not feasible. Fabletics was launched with the latest technological and financial innovative methods to advance their position as an online fashion leader.
Joining the trend of highly scalable e-commerce firms like Apple, Warby Parker and Bonobos, Fabletics makes very effective use of social media, big data and reverse showrooming.
While the firm announced having 22 retail outlets with plans to open more than a dozen earlier this year, its rapid retail success is attributable to its use of social data, its innovative business processes, its highly personalized sales model and its exclusive product line.
Making use of the latest data science methods, Fabletics has its new members fill out a fairly detailed questionnaire, which captures their fashion tastes and preferences. This data drives the selections that it presents to its customers for their consideration in special offers and personalized “monthly boutique offerings.”
With reverse showrooming, Fabletics has been able to turn its competitors’ major financial drain of customers browsing in their outlets and then purchasing the items for cheaper online into an opportunity to build better relationships with its own customers.
The company uses events and promotions to build a positive image with the local communities and promotes a serendipitous, interactive and selection-abundant online shopping experience through its use of social data.
Approximately one-third to one-half of its outlet customers are already Fabletics’ members by the time that they walk into one of its retail shops.
The integration between the online site and the customers’ interactions in the stores also drives the sales experience. Any time a member tries on an outfit, the item is saved in their virtual shopping cart for later consideration.
Following their efficient use of business resources, Fabletics makes use of the assets available through its parent company, TechStyle Fashion Group. Commenting on this relationship, co-founder Kate Hudson stated that Fabletics was able to use the marketing resources available through TechStyle as a promotional advantage. Having the resources addressed the startup challenges associated with finding Facebook experts, creative talent and advertising staff.
At $250 million in sales forecast for this year, with an average sales increase of approximately 35 percent per year, clearly this is a model that has worked well for Hudson and co-founders Adam Goldenberg and Don Ressler.
Founded by Don Ressler, Adam Goldenberg and Kate Hudson in 2013, Fabletics sells high-end athleisure wear, supporting the lifestyle of today’s active woman. The company has grown its membership to over 1.2 million members since it began.