The online fashion industry is dominated by Amazon who controls 20% of the market. One of the companies that has been most successful competing against Amazon is Fabletics. Fabletics is a company which is focused on women’s activewear. They use a subscription model where members pay a monthly fee in order to receive a monthly box of clothing plus other benefits.
Over the last few years Fabletics has expanded by opening physical stores in cities across America. One thing that most physical retailers hate is what’s called “showrooming”; customers browse the physical store but then buy the product online instead. Due to Fabletics starting out as a strictly online store they encourage what they call “reverse showrooming”. People can browse their clothes online and then buy it in a local store for the same price.
When first joining Fabletics the company encourages them to take an online questionnaire called the Lifestyle Quiz. Taking this quiz helps Fabletics know about them such as their size and what types of fashion appeals to them. By taking the Lifestyle Quiz the new member will receive a box of clothing each month that is their size and something that they will enjoy wearing.
As a technology company as well as a fashion company, Fabletics makes extensive use of metrics to keep track of sales and other data. One way they use this data is by deeply examining what sells in each local market they have a physical store in. By doing this they know what the local trends are and what fashion is popular in that particular market. The SVP of Operations, Dustin Netral, has said that Fabletics combines global fashion trends with what is popular on a local level.
Fabletics was launched in a partnership between TechStyle Group and Kate Hudson. The leadership of TechStyle Group chose her to lead the brand because she is well liked and also known for being athletic. They also cited that she is approachable for women. She is deeply involved in running the company, doing everything from picking new fashions the company will sell to doing data analysis and keeping track of sales.
Under Kate Hudson’s leadership Fabletics has been very successful. They now have about 1.2 million members. In 2016 the company experienced 644% growth as well. The company has also branched out and is now offering a new line of clothing through a partnership they formed with the pop singer Demi Lovato.