Fabletics is establishing itself as one of the most affordable trendy women’s athleisure brand on the market, and it’s attempting to do what most current e-commerce chains and traditional retailers are failing to do. Fabletics believes it has both the model and the services to compete with Amazon, the primary company retailers blame for drying up business. They may be on to something because they’ve used some of the same marketing strategies as Amazon like a catalog format with user reviews to go with it and a rewards system for members. What Fabletics has also done is opened brick and mortar locations which may seem like the last thing you should do to compete with Amazon, but instead of being rooted in brick and mortar stores, these have become additions to the Fabletics website and are where customer usually go after seeing products on the website instead of doing the opposite with other retailers.
Looking at what customers are doing and hearing their input for improvements they want to see is what Fabletics owner Kate Hudson does at the company. Hudson is most known for her role in movies like her biggest box office hit, the 2001 classic “Almost Famous.” She came to the fashion business world in 2013 when Techstyle Fashion Group CEOs Don Ressler and Adam Goldenberg invited her to partner with them in starting a women’s athletic apparel company. She may not have known much about running a business at the time, but since Goldenberg and Ressler knew she was passionate about everything she did yet didn’t take herself too seriously, they knew she’d be perfect for the task.
Hudson has put all the time she can afford into putting ideas in Fabletics’s design ideas and putting out Twitter and Facebook videos and campaigns listing her personal Fabletics choices. She also advised her technical team to make the Fabletics VIP program more user-friendly because while VIP membership does offer a lot of benefits, she understood that some users may not want automatic subscriptions on their profile. Big shopping data is also used to provide a more interactive experience and learn about what customers are looking for exactly. This shopping technique also rivals that of Amazon by finding customers’ preferences and speeding up their product searches, and it’s what Techstyle Fashion Group’s leaders say keeps their company close to Silicon Valley. Newcomers to Fabletics can start buying products by taking the lifestyle quiz and signing up at Fabletics.com.
Many Business insiders think it is absolute suicide to take your business and go against the giant Amazon. This Juggernaut internet retailer has been able to dominate the e-commerce scene for the past decade. Many business analysts say that to succeed in space current market, you need to team up with Amazon rather than taking them on head-to-head. While there is indeed some truth to this statement, it does seem that Amazon has some chinks in its armor. Kate Hudson, and her company Fabletics, have identified some of these weaknesses and have exploited them to their advantage.
One way that Kate Hudson and Fabletics have done this is by leveraging the power of the crowd. Today we live in a networking world. The impact had had on business has been significant. In times before this, one would just walk into a store and buy what product they found. Today, people take reviews seriously and always search for the best product. People are much more apt to follow the suggestions of their friends then they are advertisements. Kate Hudson understands this and has used the crowd to Fabletics advantage.
For the first year, Fabletics dedicated their time to focus on the consumer, responding to customer reviews, answering customer questions, and making the consumer the number one priority of the business. This has resulted in the amazing things for the company. It is reported by several third-party sites that Fabletics has one of the highest consumer ratings in all of online e-commerce. This has led to them gaining customers at a rapid pace compared to what Amazon can do.
One area where Fabletics is strong in is the area of the repeat customer. Leveraging the power of the crowd and the trust they have created, Fabletics began using an internet subscription service to increase sales. The customer could select either a monthly, quarterly or annual subscription. What Fabletics did not anticipate, was that customers would become so enthralled by their products that they would begin purchasing additional ones beyond what the subscription offered. This would play in their favor when they decided to open retail stores.
Over the past decade, retail stores have felt the might of Amazon. A trend that has been occurring for some time is showrooming. Showrooming is when a customer enters your store with the intentions to scout products that they will later purchase online for a better price. They pretty much just use your store to examine the product. Fabletics reversed that because of customer loyalty. When they opened retail stores, they found that 50% of those visiting were already Fabletics subscribers. Of the 50% who were not, 1 out of every 5 of them signed up for a subscription before leaving the store.
Such loyalty all has to do with Fabletics leveraging the power of the crowd. Most businesses, Amazon included, are incapable of building such loyalty. However, since Fabletics catered to their crowd, the crowd will now support Fabletics for the rest of its days.
Don Ressler is one of the most respected men in the fashion retail industry. If you haven’t heard the news, his company is taking over the online retail industry, particularly in the apparel segment. As such it is said that his company Fabletics is competing with the industry mogul Amazon.
One of the reasons that make Don Ressler’s company a huge success is the fact that it is uses a subscription model on eyepain.org. FabKids, FabShoes and Fabletics are all company co-founded by this innovator. To buy items from these companies, you can choose to be a member then purchase. Being a member allows you to purchase items at highly discounted prices at http://www.businessinsider.com/justfab-becomes-techstyle-fashion-group-2016-8. Also, it gives you the benefits of both worlds- purchasing as a member and as a non-member. This is because; you are never forced to make a purchase. It is entirely up to you. And, if you don’t want to shop, you can skip the month without any penalties.
Before co-founding JustFab, Don Ressler worked for Intelligent Beauty. He founded this company back in the year 2006, after he and Adam Goldenberg had left Intermix. Intelligent Beauty was an e-commerce brand incubator for the beauty and health sector. With the company, he was able to raise over a billion dollars in sales. He also helped companies to raise over $100 million. This earned him the title brand development guru.
Prior to co-founding Intelligent Beauty, Don Ressler worked for Intermix. He began working for Intermix in the year 2001 when he sold his company Fitnesshaven.com to Intermix, He was in charge of enhancing shareholder value. Also, he would oversee the strategic planning of the company’s core ventures.
Today, Don Ressler continues to thrive by getting valuable investors to fund his businesses. By the year 2014, his company, JustFab, had raised over $300 million through various rounds. That year saw his company join the unicorns after being valued to be worth over $1 billion. The company continues to thrive under the new name, TechStyle, and is headquartered in El Segundo, CA.