Fabletics: Successfully Using the Reverse Showroom Technique

Fabletics is one of the most popular online retail shops in the world today. The company was initially founded as a startup by Kate Hudson, a well-known American actress, and she never imagined that the company would significantly grow into a $250 million business. Being an online retailer, the company is competing for head-on with the online retail giant Amazon, which currently controls over 20% of the industry. The primary product offered by Fabletics is stylish athletic wear aimed to be sold to women of all races and sizes, and the company have made a massive following after their establishment. Aside from creating high-quality products, the company is also focusing on building strategies and techniques on how they can dominate the market. The unique strategies are proven to be effective, as Fabletics is already breaking into the realm where Amazon has dominated in the past. One of the most effective technique that Fabletics developed over the years would be the reverse showroom technique.

 

The practice is frowned upon by merchants and entrepreneurs who own physical stores. According to them, reverse showroom technique allows people to come inside their shops, look for an item that they wanted, but the customers would end up not buying the product because they will be searching for a similar item online that is being sold for a lower price. Fabletics developed a strategy that will transform the dreaded technique into one of their assets to grow.

 

Fabletics both have physical and online stores. Before someone can buy any item sold at Fabletics, they would have to be a member first. The things that their customers are purchasing inside their physical stores are synchronized online, and more than a third of the people visiting their physical stores are already members. On the other hand, one-fourth of customers visiting their physical stores are becoming members of the shop because of the perks and discounts that are being offered by their friendly staff. This practice resulted to their purchases being tracked down online and offline, and if the customer saw an item at their physical store and searched for it online, the first result that would appear would still come from the Fabletics online store. Additionally, the member would get the best deals possible because of the perks that they get from being a Fabletics member. The company is expecting that more people will be signing up to join one of the fastest growing businesses in the United States today.

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