The dominance of online marketplace giant Amazon in the activewear market has finally faced a blow, and it has started to lose its market share. But the interesting thing is that the blow came from a relatively new and small company called Fabletics that started its business only three years ago. However, within these three years, Fabletics has become a $250 million brand and seized a big market share from Amazon. Thanks to a number of unique and intuitive strategies, Fabletics has not only penetrated the market but also started to dominate this one. According to industry experts and analyst, Fabletics will double up its market share and profit if it continues its business at such a pace in the next three years.
Fabletics is an activewear or sportswear brand from the USA which was created by Kate Hudson, Don Ressler and Adam Goldenberg in 2013. Triggered by a huge gap in this market, the trio started to focus on this niche with their exceptional and groundbreaking products. They sell their products through their online shop and they also have a massive chain of stores in some of the most prominent locations in the country that include but not limits to North Carolina, New York, Las Vegas and so on. Sometimes, they also use pop-up stores in different places and occasions for promotion. Their product line includes but not limit to sportswear, gadgets, and accessories for both men and women with an active life.
However, what makes Fabletics click with their clients is their business tactics. Rather than pushing their own products to the clients, they depend on the customer data collected through surveys, membership registration, and purchase history. These data help them to understand preference and choice of the customers. Based on these data, they design and produce activewear for their clients which will suit their lifestyle and preference. They have a free membership program for their loyal clients, and they offer them a new collection of sportswear and accessories to them on a monthly basis. In this membership program, the clients are offered with a monthly collection of sportswear which is designed and produced by Fabletics based on their preference and make a purchase within 5th of the month. However, if the clients do not like the new monthly collection, they are charged $49.99 which is then converted into store credit that never expires in the future.
In addition to an engaging membership program, Fabletics also promotes “Reverse Showrooming.” Most of their clients usually go through their online collections in the first place, compare them with others and then go to the stores to make the final purchase. This gives their clients more comfort and helps them to build up a strong relation with their clients. In addition to that, Fabletics uses its customer data very accurately to design and develop its product line. While other brands try to force their choice on their clients, Fabletics goes the opposite way and designs products according to client’s choice and lifestyle. Also, they also use the same data to create a better emphasis on accessibility, people and culture and to create a better loyal relationship with their customers.