It has always been difficult for a new product or innovation to enter and actively compete in new markets. However, this does not seem to be the case for Kate Hudson as Fabletics is taking the e-commerce fashion industry by storm. Despite Amazon controlling more than twenty percent of the market, Fabletics has grown to a net worth of around 250 million dollars in only three years.
The online retail company deals with women’s sports gear and accessories popularly known as athleisure. The process is quite simple with customers required to subscribe and like their preferred brands. Armed with this data, Fabletics can capitalize on their customer’s likes and are therefore more convenient.
Previously, all that was needed to run a successful enterprise was excellent quality and reasonable pricing. With changing economic times, this is no longer the case. Instead, one has to put into consideration things like customer experience, exclusive design, brand recognition among other things to appeal to the new client. This move appears to be paying off well for Fabletics. In addition to their online stores, the brand is currently planning to open new ones in addition to their current ones based in places like California, Florida, Illinois and Hawaii. The present number of Fabletics retail stores stands at 18.
Gregg Throgmartin, the company’s general manager, believes that the brand’s knowledge of their clients is key to their extraordinary results. Most people browse for items in person but buy them elsewhere at lower prices. With this in mind, Fabletics’ strategy enables them to create and nurture relationships and as such get to know more about their markets. This way, almost half of the people who enter the store are already subscribed, members. This also beneficial to the stores since they only stock items that appeal to their individual localities.
Fabletics recorded a growth rate of 35 percent annually for the period it has been in existence. This increase is a result of excellent product quality and pricing. If the brand’s ability to understand the new market consumer is anything to go by, then Fabletics is a force to be reckoned with in the fashion industry.