Fabletics is an innovative breath of fresh air in a highly competitive industry. Retail is dominated by several powerful corporations who set the tone for how business is done and how consumers receive the product. Online shopping created an entirely new avenue for consumers to browse and gain access to various types of merchandise. Fabletics was yet another take on the relationship between suppliers and those who express demand.
Adam Goldenberg and Don Ressler are two young businessmen who looked to bring their new ideas to the fashion industry. Both of these men had success with online marketing and relished the opportunity of applying their knowledge to a new arena. JustFab was there original creation and supplied women’s apparel online. The company offers a monthly membership for customers to access the available goods at a discounted price. The business model was highly successful. Fabletics would soon follow as a spinoff to the base concept.
Fabletics promotes a line of athletic wear for women. Ressler and Goldenberg enlisted the help of movie star actress Kate Hudson. Kate Hudson is the face and co-founder of the new company which has grown to international levels. Fabletics offers merchandise worldwide and is currently in the process of opening retail stores in key locations.
Fabletics is making an impact on how other major retailers do online business. Its retail store locations will allow customers to have a physical shopping experience along with maintaining their membership status with the company.
Goldenberg and his team believes that the membership personalizes the shopping experience for the consumer. This is much different from other online retailers such as Amazon.com. There are some online outlets that charge a yearly membership fee in order for it’s customers to access discounted items. Executives at Fabletics have found that these websites do not have a high rate of return business despite a large volume of browsers. Fabletics is looking to create brand loyalty with its clients. Having repeat customers is what sets this business model apart from the traditional retailers within the industry.
Fabletics grew into a 250 million dollar organization in the first three years. Its unique business model was able to turn an industry negative known as show rooming into a positive. Showrooming is when people browse for items and then choose to buy them somewhere else. Having customers who walk into the Fabletics retail stores as members increases the chances that they will get involved in a buying experience as opposed to looking and not spending.