No image available

Avoiding Waste: Fabletics’s Method of Making Money

One of the factors that have a huge influence in the amount of money that a company makes is the amount of products that sell compared to the products that are left over. When a company brings a product to the shelf, money was spent to either create the product and have it placed on the shelf. Even merely putting the product on the shelf can be costly because the product does have to be paid for somehow. After it gets on the shelf, the company has to make sure it sells the product so that it can get the money back.

 

This is the case for every company other than online companies unless they provide their own products. Fabletics is one example of an online retailer that has to spend money to get products developed and on the shelf. This is one of the reasons that Kate Hudson makes sure that she gets a ton of information from the customer when they sign up. She collects data from the member and then analyses the data so that she can decide which direction to go in. This saves a lot of money in many different ways. For one thing, it encourages the customer to shop for the company. It also helps the company avoid the issue with overhead.

 

Each aspect of the customer experience of Fabletics is monitored. One of the reasons that Kate Hudson has opened up brick and mortar locations for her brand is because she is aware of the differences between shopping online and shopping at location. She is aware that people are not able to try on items they buy online. She is also aware that some of the items lose their appeal to the customer after it has been tried on. Therefore, she has used the brick and mortar location to gather information on how the customer would interact with the items. This would help Fabletics on figuring out the type of products that have the best effect on the customer. This would also be a good influence on the next season of products she brings forth.