eTail West Briefing: Fabletics’ big bet on video, J.Crew’s AI review summaries and more Day 2 highlights

The future of e-commerce is video. 

That’s according to Adam Goldenberg, the co-founder and CEO of Fabletics. While kicking off day two of the eTail West conference in Palm Springs on Wednesday, Goldenberg dove deep into Fabletics’ big tech investments — of more than $400 million — which have resulted in company-wide operations best described as data-fueled. 

Eighty percent of Fabletics’ 2.4 million VIP members drive 95% of its revenue, and — thanks to data collected throughout their journey with the company, from their onboarding quiz to their casual online browsing — their every touchpoint with the retailer is personalized. That includes the items they see on the company’s homepage, which reflect their sizes and propensity to buy sale items, as well as the items recommended to them in stores. 

Data has also informed the company’s big push into video on its e-commerce site. People are more likely to purchase a product when it’s accompanied by honest video reviews, Goldenberg said. And, when presented to a shopper, these videos see high engagement. Currently, about 90% of products on Fabletics.com feature 4-5 videos generated by 4,000 micro-influencers the company sends products to every month. 

In addition, Fabletics has effectively used data to solve for typical inventory- and returns-related challenges.

Fabletics has zeroed in on perfecting size and fit to drive down returns, Goldenberg said. The company has a return rate of about 7%, compared to industry averages of 12-15%. What’s more, it’s achieved a 95% accuracy rate across product size and demand for members.

“We just want to make sure the product always fits the same,” he said. 

But getting there requires a combination of strategies. First, Fabletics relies on “old-school” wear testing to see how garments lay and perform. Then, on the manufacturing side, it holds its suppliers accountable for how well products perform. One pant SKU, for example, may be made across four different factories that are each tracked for return rates and compared against each other. 

“It also keeps our suppliers very focused because they know every product they make they’re being held to a very tight scorecard,” he said. –Jill Manoff and Melissa Daniels

Overheard 

“LinkedIn is the TikTok for B2B.” One tech executive who has been investing time into posting videos on their personal LinkedIn said that doing so has helped recruiting for both new hires and clients. It’s yet another reminder that LinkedIn is worth experimenting with for brands trying to hone their online presence. While the thought leadership and opining can feel a bit much at times, it’s also becoming a storytelling tool that can help brands position themselves in the marketplace. Daniel Rodriguez, CEO of Currently Wine, for example, shares near-daily updates on how fundraising is going with a “build in public” strategy.  “It’s driving a lot more than sales and awareness for the brand,” he said. “It’s getting me investors.”

Stat of the Day 

80%: “Our recommendation for most brands is 80% video [content], across every channel — even for promotion and conversion media: Run video, not statics.” –Chris Berg, senior director of client strategy and service at January Digital

Quote of the Day 

“We had a win last year when we were building and testing different technologies. We ended up building our AI review summaries. So if you go on the site now, you will see a summarized review feature on different PDPs that really helps tell you the customer sentiment. … Around our HQ, everyone’s like, ‘I love this new thing. It’s really helping.’ And If the C-suite is excited about it, that’s really great. It means it’s helping them [do their jobs], while it’s also helping our customers [make smart investments].” –Ruchika Julapalli, vp of digital experience at J.Crew and Madewell