A business model will make or break a company. A good business model will lead a company in the direction of success. A bad business model will quickly lead a company to failure. Before any company can begin, a business model needs to be created, and the best ideas need to be presented. Fabletics is a new company in the fashion industry, and the business model they are using has paved the way for them to be highly successful.
Fabletics began in October of 2013. The co-founders of Fabletics are Don Ressler and Adam Goldenberg. They brought in spokesperson Kate Hudson, and Fabletics was born. Fabletics is an athletic apparel company, and they provide comfortable, trendy, and decently priced clothing.
The approach they took to running their company was unique from their competitors, something Don Ressler identified as essential to their success. The company began as an online company. All business was done on their website. All of the merchandise is available by searching the website, and no physical stores were available in the beginning.
The model for Fabletics was a membership-based model. When customers come to the website, they are given the option to sign up. By signing up, customers are asked questions about their likes and needs. These questions provide the data for each customer to have a personalized shopping experience.
Once the site has information on each customer, clothing, deals, and incentives are provided. Certain outfits are recommended based on customer preferences. Sales are offered based on the needs and wants of their customers. This model also works in reverse as well. If the data shows that a customer does not prefer a specific item or model, it will not be presented to that customer.
By taking the time to ask questions, Fabletics can get to know their customers on a more personal level. This works out for the both the company and for the customer. Customers feel like they matter and Fabletics knows what is wanted by their base. Fabletics has created a model that will allow them to grow where they need to and keep their customers happy. Forbes has more on Don’s continued growth.