Fabletics is an online clothing fashion retailer that sells Athleisure wear. It was first started in 2013 by actress Kate Hudson and some two winning businessmen named Adam Goldenberg and Don Ressler. These three business leaders had the idea to bring high quality fashion to the masses at an affordable price. Their business is now a big online hit and it is on its way to becoming a highly-rated fashion business.
Fabletics sells athleisure wear as its central product. This style of fashion wear is designed exclusively for females. Athleisure wear is stylish enough to be worn for casual outings and it can also be used for sporting or more active related events. Kate Hudson and her co-founders wanted to create a fashion line of clothing that would allow women to have this kind of flexibility. They have succeeded.
As of 2017, the company has been valued at $250 million-dollars and their future is looking bright. The reason why this company is so successful has to do with the approach that it takes toward its clients. The founders of Fabletics utilizes the process of reverse showrooming to increase their sales and to provide a detailed clothing experience for their clients.
Reverse showrooming is a process that allows women to visit a brick-and-mortar Fabletics outlet to try on clothes. As a client tries on different clothing items, a sales person at the store adds her clothing selection into an online shopping cart. In other words, if a customer wants to try on a unique athleisure wear styled dress, the sales associate will then scan the item and store it away within that particular customer’s online shopping cart and information.
The customer can then purchase the item or leave it in her cart and buy it at a later date. The sales associate will then take her clothing selection and start to bring items into the store that matches her clothing style, colors and design. This way a customer can have the type of clothing experience that she enjoys.
Reverse showrooming provides Fabletics a practical way to stay competitive as an online fashion business. While this company has brick-and-mortar locations; it does classify itself as an online business. Since it does, this organization must compete with big internet giants such as Amazon.
The problem with Amazon in terms of the fashion business; is that it dominates at least 20% of all internet related fashion sales. Amazon is a powerhouse when it comes to product price reduction. They are simply beating out other businesses because they can push huge volumes of products at low prices.
Enterprises such as Fabletics have a hard time competing with this company because they cannot undercut their prices as low as Amazon. They simply could not survive if they did. Fabletics is no exception to this reality. However, they also have managed to find a way to sell their product at a reduce cost without going broke. Fabletics have grown and survived over the past three years because of their outstanding customer service and their superior product.