Few upcoming brands take on bigwigs when they start, but when you are selling cute athleisure, you might. Most startups try to take on smaller players before they take a shot at the big boys, but Fabletics is having none of that. They have taken fashion retail by storm. Perhaps having Kate Hudson in their ranks gives them the feeling that they have the A-game already. They are already turning heads and earning rave reviews all over.
In 3 years, Fabletics has a valuation of $250 million. It is unbelievable but true. It takes fashion startups a decade or so to get that kind of valuation and most die before they even reach there. The company has positioned itself uniquely in the market by ticking all the right boxes. The women athletics and workout gear store has a digital and physical presence in over 16 locations including Hawaii, New York, Las Vegas and Colorado.
To encourage organic growth and expansion, Fabletics uses subscription-based selling. Just the way technology startups work, Kate believes that people need to own the idea before they move on to serious buying. It follows logic that if a person cannot subscribe, she is not ready to buy yet. Through the subscription, members can receive regular updates on new releases, trends, and bonuses.
With this kind of selling, it helps the company focus on other things. For example, the company can engage more aggressively into brand selling, which combines personalized boutique selling and incentive-based promotions. Even when a person has not planned to spend on clothes, the sheer size of discounts and offers becomes too sweet to ignore.
According to the company, it also all depends on knowing the client and what matters to her. Fabletics scans and scours through online data on social media and mainstream media to understand the market and the people. To do this, it requires a dedicated and talented team to do this. Fabletics co-founders Don Ressler and Adam Goldenberg have extensive knowledge in social media and big data.
Using analytics to understand the market is easier to say than do. One must follow trends and be ready to reinvest the knowledge. The company is risk-positive and judging by their bold and adventurous attitude towards selling; they are just the right team to utilize any newfound knowledge.
Despite this being a niche market, Fabletics makes its clothes accessible to people of all cultures. It is also important to note that the company goes all out to put its hearts to the brand. It makes sure that over 30% of the people who visit stores are signed members. Through reverse showrooms, the company guarantees that up to 75% of the store visitors are members.
Fabletics doesn’t just sell apparel and workout gear; they develop a relationship with you. First, you take the lifestyle quiz; this survey gives them an idea of your tastes and preferences. Once you join, they tailor make your clothes every month. You don’t have to pay anything to be a member. It is absolutely free. Join and be one of the lucky and happy customers of this new phenomenon.