Actress Kate Hudson is the co-founder of Fabletics active wear. The actress is changing the way people shop by making a flexible VIP membership for Fabletics customers. Most companies who sell products online and in stores are worried about how other online companies like Amazon effect their sales. Fabletics is definitely not one of those companies.
When visiting the Fabletics website, customers are greeted by multiple models, including Kate Hudson, wearing various athletic outfits. Customers are offered the $10 first two-piece outfit deal when they become a VIP member with Fabletics. When signing up, customers have to take a short style quiz which asks what is their favorite way to get fit, where is their favorite place to work out at, which colors best match their style, which diagram best mirrors their body type, and their size preferences for tops, bottoms, and sport bras. Once becoming a Fabletics VIP member, customers can chose their first outfit. The company promotes their $10 intro price outfits the most when a VIP member first joins, but if the customer does not particularly like any of the $10 outfits there are $25 and $35 intro price outfits to pick from as well. VIP members get exclusive access to exclusive outfits and VIP members-only sale events. After the customer buys the $10, $25, or $35 intro price outfit and they are satisfied with their outfit and want to continue their membership, customers can shop for their outfit between the 1st and 5th of each month. If the customer decides that they want to pass on their outfit of the month, they can simply login onto the Fabletics website and say that they want to pass on that month and the customer will not be charged. If the customer does not want the outfit that month, but do not login and say that they want to pass on that outfit, the customer will still be charged for $49.95 that month, but will be able to use that as credit towards their next outfit purchase.
Fabletics is a growing company which is primarily focused on the Internet, but they are using a newer technique called the reverse showroom technique. Fabletics is tied to this technique in Paul Armstrong’s article “How Kate Hudson’s Fabletics Is Takinng On Amazon” for Forbes. Armstrong mentions in his article that Amazon controls 20 percent of the fashion e-commerce market. Fabletics General Manager Gregg Throgmartin thinks that the reason the company has had so much success over the few years the company has been in business is because of the membership model and providing quality personalized service. Fabletics is using the reverse showroom technique by luring customers online to become members, but the customers are then interested in the Fabletics stores. Around 50 percent of the people that shop in stores are already members, and 25 percent of in-store customers leave as members.
Fabletics is using a smart technique to provide customers with quality and personalized service while being accessible for the customers.