The digital revolution has been a general plus for business, but there are some serious drawbacks that are affecting some segments of the business sector greatly. One negative factor is a shift in customer behavior especially in relation to high-end items. Previously, marketing to customers who patronized this particular segment of the fashion industry could be highly effective simply by having a high enough price point to provide exclusivity and then in providing a high-quality product to their clientele. Because of the digital revolution, there has been a serious shift in what motivates these customers to patronize a high-end business and become brand loyal.
One particular shift in customer behavior is the tendency of modern, often young, and very eager to purchase customers to only go into brick-and-mortar stores to browse. These potential customers then go to online sources to find cheaper avenues in which to buy these items. This practice has become known as showrooming because the affected stores feel like they have only become showrooms for Internet companies whose products are cheaper in many cases only because they do not have the overhead of a brick and mortar.
Recently however, there has been some great entrepreneurial start-ups that have taken the showrooming trend and turned it into a complete plus. It must be noted that these companies had to first understand the trend and the underlying factors that contributed to the trend’s inception. Then strategies had to be drafted to thwart or reverse the trend. Understanding the market idiosyncrasies has allowed these companies to draft a strategy of reverse-showrooming.
So, it is important to point out that reverse showrooming was born of a great business savvy from very high quality executives and marketers. Fabletics is one such company founded by movie star Kate Hudson, and the company has employed some of these same high-quality executive to push the brand. Reverse showrooming involves utilizing showrooming in a very unique way. They actually like the trend of showrooming. They use any opportunity in which they engage their clientele to offer them subscriptions. These subscriptions mean that the client receives a customer experience if they choose to go into a store and a quality product that can be purchased in the brick-and-mortar or online at the same price.
Therefore, many of the people that enter the stores are already loyal customers and are not using the stores simply to browse, and new brick and mortar customers are converted with a quality customer experience and the same subscriptions. Fabletics is headed by general manager Gregg Throgmartin and was founded in 2014. They are a high-end athletic and fashion brand which is a new emerging market in itself. Additionally, because Kate Hudson is very fit and athletic, she is also the lead model for the brand and the demographic to which they cater. In spite of her commercial success, she is seen as a common person among fans and peers.