Reverse Showrooming Strategy of Fabletics

Unless you have been living under a rock for the last several years, there is a very good chance you have not only heard about Amazon, but have used their website to order various items over the internet. Amazon has truly revolutionized the way we buy our products, as the site has truly made it easier to make a wide range of purchases. If you are looking to avoid heading to the grocery store every time you run out of a household item, you can simply have Amazon send you an overnight, or even a same day shipment. A massive amount of people buy clothes on the site, as well as major items, such as big screen televisions and other electronic equipment. If something is being sold, literally anywhere on the globe, there is a good chance you can buy it on Amazon.

One of the interesting problems that started to arise with the explosion of the internet, was that physical store locations started losing quite a bit of money, due primarily to show rooming. This is essentially when a consumer walks into a store and shops for various products, then utilizes the internet, primarily with a smartphone, to see if there are cheaper prices for the same products online. Based on the fact that there are far more retailers selling products online, this brings down overall price, as a result of additional competition. While this leads to lower sales for physical store locations, the exact opposite situation, reverse showrooming is actually extremely common. One company that is taking advantage of this trend is Fabletics, which is a company that was started by famous actress, Kate Hudson. Fabletics utilizes the technique of reverse showrooming, where their products showcased online, while also studying evolving fashion trends and researching their customers interest. This essentially cuts down on the amount of products that they actually have to stock and by allowing customers to find the products they want online first, they reverse the process, by selling the bulk of their products in person.

The company has exploded in the first few years and is currently worth 250 million dollars, and it appears that they are on the track to simply get bigger in the following several years. The strategy that they have employed is based on consumer preferences, and while the internet has absolutely made it easier for people to shop around and get a better price, while avoid in-store purchases, trends have definitely shown a preference for buying things in-store. The approach the Fabletics has taken is in stark contrast to that of Amazon, but the rapid increase in the value of their company has proven that the have been quite effective. Another major reason why the company has taken off, is the fact that they are pairing high quality products with affordable prices, which has put them in a great position to reach a massive amount of consumers. Another great thing they are doing is paying close attention to changes in preference, catering to the current trends that are popular.

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