It has been in the forefront of the consumer’s mind for many decades, that if an item is being sold for a high price it is almost certainly made from very high quality materials. The reverse is also something that the majority of consumers have thought to be true, for far too long; that is to say, that if an item is being sold for a very low price, then it is not of high quality or workmanship, and it is probably made out of low quality materials. This information may have been true at one time in history, but it hasn’t been true for sometime now. Products are now rapidly produced and inexpensively marketed so that their price simply cannot be an adequate reflection of the items quality. Due to an unexpected economic slide, consumers have been turning to prior consumers’ advice before they themselves make a purchase. They browse for items online, targeting those that have a considerable amount of complimentary customer reviews and comments, to determine a product’s actual worth.
Consumers now tend to take their time to find merchants that have customer representatives that will contact buyers after they have made their purchase, to ask them how they feel about the product’s value and their service at the store. Consumers also tend to look for products that have only limited production runs, with exclusive and creative construction, before spending their money.
Fabletics is a retailer who has learned from consumers on how to best create their business model. Kate Hudson created Fabletics in 2013. Their business methods employ a unique subscription based policy. This policy uses software to keep track of the items that visitors to their website are interested in either purchasing or looking to purchase in the future. The shopper’s interests are shared with the Fabletics physical stores, to keep up to date with their merchandise. Items are added to or removed from the physical store’s shelves to keep in line with the online store’s database of shopper’s interests.
This sharing of information between the online and physical stores permits Fabletics to stay at the forefront of shoppers’ interests. Famous online retailer Amazon has maintained a 20% hold on the clothing market with a loyal customer base. Fabletics’ unique subscription based data sharing has permitted them to also stay strong in the opinions of consumers, and within only three years time, amassed a hefty $250 million profit from their business.
Physical retailers have been shutting down their stores, or moving their products to only be available at online locations, because shoppers would visit the physical stores to see the merchandise, but then they would buy the merchandise from online retailers who offered lower prices because they did not have to pay for a physical location. Fabletics use of their subscription business model prevents this type of behavior. Fabletics is widely known for their style of athletic clothing, often called workout clothes, gym clothes, or active wear.