Succeeding in a space where Amazon controls about 20% of the fashion market has been no small feat for the Fabletics brand. In just three years, Fabletics by Kate Hudson has grown to be worth $250 million dollars.

 

Fabletics uses a subscription business model to sell its active wear and its convenience and membership model has proven to be very successful over a very short period of time. Brands have always traditionally been defined as high end by its price and quality but that has changed over the last few years. Now, the customer wants good customer service, brand recognition, and exclusive designs-that is what defines high value brands these days. Fabletics plans to open more physical stores in Illinois, Florida, California, and Hawaii.

 

General Manger, Gregg Throgmartin believes that the success of Fabletics is from its new version of “high-value” branding. The membership model of Fabletics as well as personalized service and a better cost than its competitors have all contributed to the great success of the company. He believes that it’s much easier to make the customer happy when you know exactly what they want.

 

Fabletics built relationships and got to know the local markets rather than go with the usual pop-up store business model. This enabled the company to gain a market where 30-50% of their walk-in customers were already members and 255 became members.

 

In only four years, Fabletics has gained over 21 million followers in Twitter and has opened 18 retail stores. Hudson saw an opportunity and she seized it. Fabletics has recently expanded into plus size apparel and she is passionate about encouraging her customers to live healthier lifestyles through her apparel.

 

Hudson stays very involved and keeps on eye on what is selling and what isn’t and adjusts her collections accordingly. She also keeps an eye on sales for each week. Data collection has proven to be very useful and when each new member signs up to become part of Fabletics, they take a Lifestyle Quiz that helps get them a more personalized fit and lets Fabletics know exactly what the customer wants.

 

Hudson gets her inspiration form her mom, Goldie Hawn, and believes it’s very important to take risks so that you have the chance to become successful. She believes that if you live your passion and focus on what its the most important, then you will become fearless and inevitably successful.

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