Fabletics Takes on Amazon through a Reverse showrooming Business

Fabletics has used a simple idea for their business. According to a recent survey, the company has built its company to $250 million in a short period of three years. Fabletics is today a highly successful company. Amazon may be a world giant in e-commerce, but there are companies like Fabletics growing to compete with it. Amazon contributes twenty percent of the total online fashion sales. Fabletics has grown to compete with Amazon due to its creative business strategy. Fabletics has created a business model that focuses on a membership model. The membership model has allowed shoppers to enjoy the services that have made the firm a huge success.


Fabletics has provided services according to current customer expectation. It provides excellent customer service with exclusive designs. The company’s success has led it to open up sixteen physical stores in separate locations. The company plans to open additional stores shortly. Fabletics members have loved the company for its offers and perks. Fabletics has built its business on a proper customer experience. The company understands customer tastes and matches them with products.


Fabletics knows that its success in the e-commerce market is not a small thing. The company had to beat big giants like Amazon in the activewear industry. Through Kate Hudson’s tactful advertising strategy, Fabletics has grown to become highly successful. Fabletics has used a subscription business model to sell its clothing. The company’s business operation is simple. It mixes membership and convenience to create a winning combination.


Another reason for Fabletics success is that the company has focused on a reverse showrooming strategy. Companies that operate on a showrooming business model tend to operate on losses. Online companies that operate on the showrooming strategy get big losses from offline companies. The showrooming business is where customers view products on a site and purchase elsewhere. Customers opt to purchase the same produce elsewhere at a lower price.


Fabletics has turned the strategy to favor them by employing a reverse showrooming. Customers have found Fabletics products cheap and therefore purchase from the firm. Fabletics has strived to build a strong relationship with customers. The relationship comes in the form of a membership strategy. According to the company statistics, 50 percent of people that walk through the stores purchase from the company. The other percentage are company members that receive offers and discounts. Once a customer picks a certain type of clothing, it goes to their shopping cart. Fabletics has created an offline store for other customers. The firm doesn’t care whether customers purchase on the retail and offline store. The company will always make profits as long as customers buy.


Gone are the days when the product price and quality were the only determinants of product success. Fabletics understands this and has grown its business model. The firm has focused on creating a business that enhances customer experience and brand design. According to an online survey, the two factors are lead determinants of a product success. Fabletics has focused on the two strategies and succeeded. The fact that Fabletics is currently worth $250 million is a true indication of the company’s success.

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