Every fashion eCommerce retailer wants to taste the success Amazon has achieved. Its market influence extends to a massive 20 percent of the online shopping community. Lately, its newest rival, Fabletics, a TechStyle subsidiary, which recently celebrated its 4th anniversary, threatens to dethrone the eCommerce champion. In just three years following inception, Fabletics generated $250 million in revenue. With it acquiring physical retail space, it’s now accessing untapped channels of the market. In a modern industry where consumer expectations of high-value fashion brands have matured, retailers’ toughest challenge is keeping relevant.
One of three marketing strategies exploited by Fabletics is reverse showrooming. Having witnessed countless retailers fail at showrooming, it devised a quintessential approach to win over consumers. The athleisure fashion designer makes every event of browsing count with the reverse method. This has enabled the brand to strengthen customer relationships. Additionally, it preserves walk-in consumer browsing history by adding items to their virtual shopping bag. An estimated 25 percent of potential shoppers browsing in-store locations become paying subscribers. Another survey revealed that 30 to 50 percent of Fabletics members browse physical retail stores as well as online.
While online data represents the essence of any retail strategy, Fabletics utilizes a combination of elements to influence consumers. It’s particularly focused on preserving the brand experience with every interaction. It considers dynamics such as social media sensibility, live sales, membership preferences and heat-mapping analysis to create style trends that actually engage consumers. Its “Lifestyle Quiz” also streamline data to help determine and create the perfect fashion recommendations for each member. The brand reported an exponential growth rate of 35 percent according to TechStyle’s head of marketing, Shawn Gold. Fabletics has credited this success to its exclusive membership program, intelligent distribution, data awareness and convenient purchase options.
Fabletics co-founder and award-winning Hollywood actress, Kate Hudson, has been credited for the brand’s quintessentially fashion-forward styling. The celebrity entrepreneur keeps a low profile, despite her massive success pioneering the emerging fashion eCommerce franchise. She’s injected herself in every aspect of manufacturing and management to even encouraging a TechStyle collaboration. A partnership with the fashion eCommerce retailer provided the leverage Fabletics needed to evolve and tap into new markets.
Hudson developed on this perfect learning adventure and spearheaded a series of creative development exercises to streamline sustainable growth. With an opportunity to tap into unlimited resources, fashion expertise, and lucrative investment channels, Hudson anticipated every advantage in a TechStyle alliance. Fabletics has remained consistent with growth over the course of operation. Last year, it reported a growth rate of 43 percent and anticipates a sales projection of $250 million for 2017.