Fabletics: Becoming a Successful Startup

Fabletics, founded in 2013, is one of the most successful online retailers today. They are competing against Amazon which owns 20% of the online retail industry. Fabletics sells stylish athletic wear for women, and they initially started as a web based retailer. However, as years go by and more people are becoming aware of their product, Fabletics decided to open up their first physical store. The current value of Fabletics is above $250 million, and the number of their customers keeps on increasing annually because of the excellent customer service that they provide and the high quality products that they sell.

 

Fabletics also revolutionized the online retailing industry by implementing a membership method before people can purchase their products. People who are visiting their website have to answer a quiz first, and the quiz would determine the kind of style for each customer. After the quiz, the customer will be given an option to sign up for free membership, and they can also upgrade it to VIP membership whenever they want to. VIP membership entitles them to receive freebies and discounts on any item that Fabletics is selling. Most of the members opt for VIP membership because of the great value of items that can be bought at Fabletics for cheaper prices. After becoming a member, customers can browse thousands from Fabletics collection, purchase the item online, and then it will be delivered to their address. People are lauding Fabletics because of the user friendly interface that they have on their website, plus the excellent customer service that they are providing to their customers.

 

With the rising numbers of the physical stores that Fabletics is opening across the United States, they are trying to study another method that would spell success for the company. Fabletics is using reverse showrooming on their advantage. Most retail companies would state that reverse showrooming is bad for their business, but it is entirely different with Fabletics. Normally, people would go inside stores to browse for the item that they wanted, and then they will be looking for a cheaper alternative. With Fabletics, because 30% to 50% of those who are entering the store are already members whose data and preferences are already stored with the company’s database, it will be easy for them to locate the item that they wanted, partnered with discounts making it a cheap but high quality purchase. Then, another 25% of people who are coming inside the store are becoming members, which would give them the same perks. The method is proven effective, and it is one of the reasons why Fabletics grew into a multimillion dollar business.