When a new company is attempting to be successful, they need to be aware of their competition. This is especially true for fashion e-commerce companies. Amazon is a huge competitor in this area, and they need to be given special consideration.
Fabletics is a young athletic wear company. They started out based completely online. Amazon was one factor that played into how they would be successful. Fabletics had to create a business model that would allow them to stand out amongst Amazon.
When Fabletics began, all of their products were available only through their website. Customers could come to the website and make their purchases there. Customers were also given the option of signing up to be VIP members. They were asked questions about what they liked and what they would be comfortable wearing. These answers were stored and a customized shopping experience was then presented to each customer. A personalized shopping experience means that customers would be given certain offers and specials based on what they said they liked.
Fabletics also used these answers in their business planning and expanding. The next step for Fabletics was to open physical stores. Based on the information given by the VIP members, Fabletics already had a good grasp on what their customers wanted to buy. Fabletics also knew where their customers were located so they were able to narrow down the best areas for opening a physical store.
When Fabletics opened their first physical stores, they already had a customer base in place. About half of the customers coming through the door were already fans of the brand. Most had already made purchases and were VIP members. By opening physical stores, Fabletics fans had another outlet to purchase their items.
By being a membership-based online company, Fabletics had a system in place to get to know their customers. By tracking information from their customers, they were able to know what products were big sellers, what trends were happening with the products, and where their customers were located. This information was valuable to the opening of all the physical stores.
Fabletics was started in October of 2013. They have only been in business for less than three years, but they have already grown to be a company valued at over $250 million. They have seen growth of at least 35% each year. Fabletics has entered into a highly competitive market, but they have found a way to set themselves apart from the rest to include Amazon.
The approach Fabletics took to the fashion e-commerce market has been different from most companies. Fabletics created a system where they got to know their customer base and learn what they wanted. They took this information and have created a successful company out of it. Fabletics may be new but they are strong and seeing growth year after year.