Traditionally, it was common for retail stores to use their showrooms as a source of inspiration to visitors. While visitors are attracted to the design, showrooms are also a place for companies to generate awareness of the brand. In these showrooms, benefits of quality are explained in detail to convince customers to buy a product on the spot.
However, the advent of the Internet proved a challenge for brick-and-mortar stores. These physical stores found it hard to attract customers because their potential clients were doing comparison shopping on the Internet. It also meant that customers already made up their mind in matter of minutes before anyone in the showroom could explain the quality of the product.
Still, there are companies that have found innovative methods to deal with the issue. Actually, they have integrated online and offline channels to offer a seamless experience. Fabletics, is one of the premier companies that perfected the model of reverse showroom technique to convince their loyal online customers to visit physical storefronts.
Before using the reverse showrooming to their advantage, Fabletics marketed fashionable cloths at a great price through subscription based catalog offers. The model ensured that subscribers get access to popular designs at almost half the price of competition. The value proposition proved effective as Fabletics grew its customer base rapidly. In fact, revenues generated in the first three years exceeded $250 Million, which is impressive for a new brand.
Following on the success, Fabletics management decided to open numerous physical store fronts across America that will allow customers to try their favorite outfits before buying the clothing. It did not mean that customers did not trust the online store; however, physical stores complement online offerings by providing a value-added service to loyal clients. The idea of physical stores is also an instant hit because Fabletics management is ready to roll out 75 to 100 new stores in prime locations across the United States. Locations such as Mall of America offer locals a chance to access Fabletics stores easily whenever they are in a mood for shopping.
Besides the success of online subscription model and physical stores, the reverse showroom technique is also an instant hit because data indicates that nearly 25 to 50 percent of store visitors are subscribers. It means that subscribers are actively using physical stores to their advantage. In addition, the management also revealed that nearly one-fourth of walk-in customers are converted to members before they walk out of the store. To create a large impact, the company ensures that products bought by the customers also show in online portals of customers, which helps Fabletics to display similar products on online portals.
Since 2012, Fabletics has grown to a multi-million brand. Initially, it sold women sportswear and accessories. In 2015, Kate’s brother and actor, Oliver Hudson decided to become brand ambassador by adapting FL2 men’s activewear.