Kate Hudson, the famous actress, had partnered with JustFab to create the Fabletics fitness clothing brand. This brand has taken the industry by storm with over $250 million in revenue. They also have over 800,000 items sold per month, making it a contender to larger clothing retailers like Amazon.
Fabletics utilizes the subscription based model gain new customers. The subscription based sales model is very trendy among other high class fashion brands. The customer pays a set monthly rate to have other fashion experts pick out their clothing. This sales technique sells a lifestyle rather than just comfortable yoga pants. They also offer online fitness videos to subscribers with no additional charge.
The company has gained a cult following that rivals even Apple. The clothing brand has a certain amount of prestige in the female fitness community, so owning an article of their clothing will put you in their club. Brand recognition and peer pressure are very power forms of marketing in this fashion industry.
You may have noticed new Fabletics retail stores if you live in Illinois, Florida, California or Hawaii. With the financial success of their online business, they have had the means to open physical stores as well. They also plan on opening over 100 new stores within the next few years.
Their retail stores are not only used to peddle clothing, but rather it primarily serves as a reverse showroom. Most of the ladies that go into the store are already members and know the items that they want. They may try different clothes and then add them to the online shopping cart. Ultimately, customers will make their purchase online when they get home. An overwhelming percentage of non-member that enter the store will give in and purchase subscriptions before they leave.
The online store typically has similar products that are in fashion as other retailers. The main difference is that it is significantly cheaper when users choose to sign up as subscribers. They make more money by having a steady flow of members rather than the occasional sale.
To avoid becoming stale, the company is constantly adding and removing items in their inventory. They only will stock items that match subscriber and market demands, cutting off the under-performing items. There are very few clothing brands that have the same level of data awareness.
If you take a look at the blog article from A Foodie Stays Fit, you will have an inside look on what it is like as a subscriber. The blog owner goes into detail of the quality of the products she received, comparing them to other more expensive fitness brands. She even completed the blog by modeling the clothing and posting photos to show how well they fit.
Fabletics has a lifestyle quiz to help users to match themselves with the right types of clothing products. They will ask clothing sizes, favorite colors and the types of sports the user partakes in. These results will automatically calculate the types of styles suitable for the user. These results will also help existing subscribers receive the right types of clothing each month.