How Fabletics’ Data-driven Model Is Reinventing Activewear
- Fabletics, the largest digitally native activewear brand, has achieved over $850 million in sales, 30 percent annual growth, and plans to double its store fleet by 2029.
Launched in 2013, Fabletics is the largest digitally native activewear brand, with more than $850 million in sales, compounded annual growth of 30 percent and plans to double its fleet of 100-plus stores by 2029. In a crowded activewear space, Fabletics operates with a unique membership model that sets it apart from the competition, driving both digital and brick-and-mortar sales.
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Adam Goldenberg, cofounder and CEO, Fabletics
In this episode for Retail Rx, Lauren Parker, director of Fairchild Studio, chats with Adam Goldenberg, co-founder and chief executive officer of Fabletics, who explains how the brand's highly data-driven strategy is behind everything the brand does, from category expansions like men's and scrubs to in-store data gathering from RFID. But it's the robust membership program that builds consumer profiles and loyalty, allowing for tighter margins and lower prices.
"There's no monthly fee to pay with our membership. It's more of a supercharged loyalty program," Goldenberg said. "[And] because of the membership program, we just have lower return rates and exchange rates. The typical fashion company, activewear company, sits at about 15 to 20 percent returns. We're at sub 7 percent and we also have less than 1 percent inventory obsolescence. So all those things take waste and cost out of the ecosystem, and that allows us to pass those savings back to our to our customers."
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