Retail stores in America and the world are always competing. A company that has made headlines recently is Kate Hudson’s Fabletics. According to experts, it may be the store that will give Amazon a run for its money. Fabletics must be gaining momentum and looking to get a competitive edge. This athleisure company has plans to open up to 100 stores in three to five years according to Forbes.
Forbes Insight on Fabletics
In 2016, Forbes discovered the company had only six traditional brick and mortar stores. Of these, only 40% of the sales they make are from clients who are ‘members’ of a subscription program provided by the company. With this in mind, the remainder of sales is derived from online stores owned by the company. Primarily Fabletics is an e-commerce retailer.
The company has come a long way to prove it can challenge current online giants. Despite stores such as Amazon stating they are ‘not threatened’ by the company, they seem ‘worried’ about the roll out plan for Kate Hudson’s company. Their subscription plans are very transparent and majority, if not all, subscribers of the same have provided positive comments.
To ensure all its customers are satisfied, the company has been tirelessly improving its customer service department. By April of 2016, it had rolled out a plan to ensure customers could be served 24 hours a day. Additionally, they implemented a strategy that would ensure clients experienced short wait times.
CEO and Co-Founder Comments
In an interview with Forbes, Fabletics’ CEO and co-founder sated the company was planning to completely mirror their stores to the online experience. Some consumers were of the opinion they had to get memberships in order to purchase low cost apparel. According to Goldberg, this was a misconception due to lack of sufficient information.
The CEO said their customer care desk was able and willing to assist any current and/or potential client get the apparel of their choice. He insisted subscription was optional and not mandatory as stated by some sources.
In a bid to improve customer service, Goldberg stated that the company has been undergoing something of a makeover. The stores might be the next step to revamping the company and giving it an edge against other competitors. By October of 2016, the company had done an audit that made it consider making changes to some of its policies. By the end of 2016, Goldberg reported that complaints they received were about five in a month. This is a great achievement of any online store seeing that consumers may complain about anything albeit small.
Fabletics has made changes to its marketing schemes. For example, it mocked Lululemon’s see-through pants debacle and high price tags in a series of YouTube videos. Forbes has predicted that the company plans on opening new brick and mortar stores near Athleta and Lululemon units. This may be attributed to the fact that the CEO stated that Fabletics does very, very well when located near either of these stores.
This may be because Fabletics offers a cheaper alternative in majority of products its competitors have on offer. With this trend, it may be the next ‘big buzz’ in the United States.