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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How Kate Hudson And TechStyle Found Grand Success With Fabletics

Just three years ago actress Kate Hudson and TechStyle teamed up to create Fabletics, an e-commerce website that offers fashionable athletic wear at a reasonable price on perezhilton.com. Fabletics, based in Los Angeles, now has a global market with over 1 million paying VIP members and thousands of employees. The company has also started opening brick and mortar stores around the United States, 18 so far, that are designed to compliment the website.

Hudson has commented that the idea for the company came to her when she realized that athletic wear just couldn’t cost enough to make to justify what retailers were charging for them. She started negotiating with TechStyle, headed by co-founders and co-CEO’s Don Ressler and Adam Goldberg to start her own e-commerce site under theirs. Ressler and Goldberg quickly saw the potential of the proposition of what Fabletics would offer. Once in the marketplace the concept caught on very quickly and in large part due to Fabletics, TechStyle is now worth over a billion dollar.

One of the key concepts behind Fabletics is that the company is vertically integrated. Because Fabletics makes the clothes they sell they control the costs and quality, as well as the ability to quickly respond to changing fashion trends on huffingtonpost.com. The company employs some of the top designers in the industry and the clothing is designed and manufactured using next-generation technology.

Read more: JustFab wants to be the next H&M

Another approach the company has taken that separates them from the competition is that is primarily membership based. This helps to create a meaningful and lasting relationship between Fabletics and its customers. This also gives customers a reason to keep returning to the website in addition to Fabletics regularly debuting new limited-edition clothing.

Don Ressler has been involved in founding a number of companies. Don Ressler’s first startup was FitnessHeaven.com. After selling this company to Intermix Media he went on to found Alena Media along with Goldberg. After having too many frustrations with parent company Intermix the pair left and formed Intelligent Beauty along with other brands. Eventually, they founded TechStyle as the parent company to all of their brands.

Ressler has been an athlete for most of his life, so he instantly saw the appeal in what Kate Hudson was proposing. He saw the gap in the athletic wear market where the prices being charged weren’t justifiable, which created an opening for a company like Fabletics to have great success.

Reference: https://www.apparelnews.net/news/2016/sep/05/new-sizes-fab-justfab/

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The Reverse Showroom Technique with Fabletics

Amazon is one of the leading retail platforms in the world are taking on the greatest retail giants. Fabletics is a women sportswear and fashion brand, and it has adopted various strategies to take on the obstacles hindering them to realize the full potential on Amazon. Fabletics has instituted a streamlined and innovative model of approach on Amazon, which is substantially attributable to Fabletics’ growing success. The Fabletics brand started off primarily as a subscription-based firm, which received a lot of positive attention from providing the best online deals to its subscribers, members. Fabletics leveraged its ability to charge their products at half the price of its rivals, which subsequently led to skyrocketing number of clients.

 

However, the Kate Hudson’s Fabletics brand continued to embrace innovations and eventually opening a physical store in several strategic places across the United States. Within the first three years in business, Fabletics had made an astonishing $250 million worth of sales, which can be partly attributed to its strategic expansion plans. The Kate Hudson’s fashion firm has plans to open 75 to 100 physical stores in three to five years in various iconic places in the US. These additional stores are aimed at complementing the existing Fabletics’ stores. Kate Hudson has plowed significant sustainable competitive advantage to the firm with the reverse showroom technique. The method will encourage Fabletics’ customers to visit the brand’s physical stores after getting hot deals online.

 

Kate Hudson’s Fabletics is strategically suited for the integration of offline and online channels. The Fabletics brand has earned the loyalty of its clients, and as such, it is sure their clients will appreciate the opportunity to try on their products in a physical outlet. Fabletics has a higher probability of reaping from the technique as nearly 70 percent of Americans view products online before making a physical purchase. Fabletics also utilizes its online platform to inform its members of new deals in the market. Similarly, the fashion brand is leveraging the phenomenon of drawing in a legion of walk-in clients who eventually end up becoming members. The act of offering one-on-one personalized items has also largely contributed to Fabletics’ increasingly growing success. With several value-added services, Fabletics has managed to take its clients’ satiation to an entirely new level.

 

Fabletics leverages a fully linked online and offline platform that enables the portals of its customers to be updated automatically as clients try on or even purchase new products. The technology enables Kate Hudson and her team to offer future offers, which are based on a client’s history of shopping as well as their preference. The combo of efficacious online marketing and the ability to provide clients with the opportunity of trying new things before making a purchase has largely enabled Kate Hudson, her team, and the Fabletics brand to have the upper hand in the fashion industry, contrary to their competitors. Interestingly, the membership to the Fabletics brand is free, which has enabled it to get a huge number of subscriptions. However, if a customer fails to make a purchase in a calendar month, they are charged a $49.95 monthly fee.

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