How Fabletics Beats Amazon at its Own Game

When Kate Hudson started Fabletics in 2013 she and her partners were well aware of the challenges that a new apparel brand would face in the recent environment. In addition to a customer base that has a multitude of options, the apparel industry itself is facing close to industry-ending challenges that many are succumbing to. The subscription service that the brand utilizes to keep customers satisfied with new and exciting product pieces, the company relies upon data analysis to really give it a competitive advantage.

 

The company compiles and analyzes a lot of data from its customer base, and in a move that helps it stand out from the pack, it uses this information to refine the buying experience as well as the product offerings. The company prefers to remain nimble and engaged with its subscribers in a way that is atypical for this market segment. In fact, the brand even offers an online quiz for its customers to determine which products best suit their tastes and lifestyles.

 

Fabletics tracks social media reaction to product roll-outs and follows the overall sentiment of the brand quite closely. Through social media, the brand is able to gain a lot of relevant information that allows it to take on established purveyors such as Amazon. The online giant has captured a very significant part of retail sales and has forced out many apparel companies. In order to compete in this environment, Fabletics has stayed with what works while making continuous refinements based on the real-time feedback that it receives from its customer base.

 

By positioning the brand as an aspirational product Fabletics has been able to grow a cohesive and robust community around its brand. In order to differentiate itself from strictly online products, the brand hosts many in-person local events at which it is able to glean even more information about its customers. The pipeline calls for further bricks and mortar locations in addition to the nearly 20 it now has. The brand also intends to continue its use of temporary pop-up concept stores in order to both reach out to its online subscribers and also attract new members.

 

This hybrid model has made Fabletics a real contender in a market segment that has been all but locked up by Amazon. The business model has proven quite strong and it is expected that Fabletics will continue with strong growth well into the future.