The Process of Reverse Showrooming is helping Fabletics to Thrive against Amazon

In case you did not know Fabletics is an athleisure wear company that specializes in the sale of athletic but casual clothing for women. While this enterprise’s primary clients are women; they also market products to men. Fabletics has been around since 2013 is has blossomed into a business that is worth over $250 million dollars.

 

This company primarily sells athletic wear. However, they also sell their signature pieces that can be worn for grueling workout or for a fun night out on the town. That is the power athleisure wear and why it is such a big hit in modern times.

 

Fabletics primarily is grounded on the internet though they have brick-and-mortar organizations within various select locations across the U.S. This company uses their physical locations to help build up their online position. Fabletics employs a marketing technique called reverse showrooming. This process is a key aspect to the success that Fabletics has in the market.

 

The company was founded by co-CEOs Don Ressler and Adam Goldenberg. It was also established by Kate Hudson who is an established actress as well as a fashion diva. Fabletics leaders realized that they had to come up with a sound strategy if they were going to compete within the fashion industry online.

 

Many online stores specialize in the sale of athleisure wear and fashion. One store in particular creates a lot of problems for competitors within this market niche. The name of this online store is Amazon and it is the most dominating retail outlet on the internet. This store is strong that it manages to shut down hundreds of new online businesses every day.

 

The reason why Amazon is such a powerhouse in the online retail game; has to do with its ability to outsell the competition at all levels. Amazon is simply the Wal Mart of the internet world. This company can sell just about any product that there is on the market and they can move their items in bulk.

 

More importantly, Amazon can outsell just about any competitor that is on the market. They can do this simply because they move millions of products from different categories each month. As a result, they can lower their costs on all of their merchandise. To put it plainly, Amazon can just outsell the competition by lowering their prices.

 

Fabletics realized this and did not want to be indirectly victimized by Amazon’s sheer selling power. Fabletics understands that they cannot compete with Amazon in a strait up fight. The online giant (Amazon) offers athleisure wear at a lower price that Fabletics. So, Fabletics had to make some adjustments to keep from being run over.

 

Reverse showrooming is the organization’s saving grace. Reverse showroom takes place when customers go into one of Fabletics stores. Then they try on clothing. Before (or after) they try each piece of clothing; a sales associate scans the type of gear they have selected and creates a profile for the customer.

 

This information is automatically entered into their account. The next time that a person shops at Fabletics in-store or online; the clothes that they previously tried on is still waiting for them if they have not purchased them before. That is reverse showrooming.

 

All of the sales from Fabletics brick-and-mortar locations are automatically classified as a part of their online profits. This business model has allowed Fabletics to stay competitive in the market, even in the presence of online reatail powerhouses such as Amazon.

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