Brick and mortar clothing shops have seen Amazon strip their sales away from them slowly, but surely. However, Amazon has the single largest share of the market, making them the toughest nut to crack.
These shops are trying to get around it by offering sales, customer membership programs, and other techniques that do help a little. Unfortunately, Amazon only continues to grow, especially when it offers deals like “Amazon Prime” two-day shipping that makes it easy to do a little window shopping at one store, while ordering online at Amazon.
One relatively new clothing company has decided the time has come to stand up to Amazon and strike back by creating its own unique online and offline options. And it seems to be working: they’ve already become a $250 million company in just threes and they are continuing to grow.
Could this company, known as Fabletics, take on Amazon at its own game and win?
What Is Fabletics?
Fabletics founded in 2013 by actress Kate Hudson, has been shaping the face of the fashion industry for three years by offering one of the most interesting and unique business models on the market.
Each member (who must pay a regular fee) takes a membership quiz at the beginning to gauge just what kind of clothing would suit their needs. Fabletics (who focuses on athletic wear, swim suits, and dresses) will then use that information to create a personalized line that you can’t get anywhere else.
This simple business model has allowed Fabletics to not only make $250 million in just three years, but to plan on opening up various brick and mortar shops throughout the country. They are projected to open 75 to 100 by 2017. How are they planning on overcoming Amazon with their shops or even competing with well-established brands?
Fabletics Membership Concept May Push Them To The Top
Although some industry experts thought Fabletics membership concept was a little too high-priced, it has been an obvious success. And it could save their offline shops from being obsolete by offering its members places to pick up their clothes on the same day.
For example, a member could order their own personalized outfit from their nearby store and then purchase it in the shop. They could also shop there for more generalized clothes, using their membership to get money-saving discounts they couldn’t get from Amazon or any other shop.
The idea here is that members will be more likely to not window shop in their offline stores and actually buy their clothes there. Even if they don’t, they’re still likely to buy their clothes online from Fabletics, due to their membership benefits.
As a result, this could be a major win-win for the company that could at least cut into Amazon’s share of the market in a major way.