Fabletics is taking on the giant and winning as they take the activewear segment to new heights in the growing e-commerce world. They are one of the few companies that have an answer for Amazon as their unique business model has paid off handsomely. Just as it’s hard to imagine The Beach Boys without Brian Wilson it’s also hard to imagine Fabletics without the inimitable Kate Hudson. She’s the perfect face for the brand with her active lifestyle and the fact that she wears the brand so well.
The reverse showroom has proved to be a winning concept for the company as members browse online to see what interests them and then make their way to one of the retail locations to finish their shopping. It’s an extension of their highly rated customer service and it gives them an additional edge in discerning the preferences of their customers. It’s one way that Fabletics stands out among retail companies who often suffer the opposite results as people browse their physical locations and then shop online for a cheaper price.
Their membership business model has also helped the company provide an outstanding product with a strong sense of fit and fashion. Their Lifestyle Quiz, in particular, enable them to gain a strong understanding of the likes and interests of their members.
An expertise in acquiring and utilizing digital data has helped Fabletics enjoy an amazing growth trajectory. Their offerings are tailored to the preferences of local members as they participate in the Lifestyle Quiz and they also employ data from social media and in-store heatmapping as well.
Fabletics is a growing concern as they’ve gone from a fledgling startup to over $200 million in sales. Kate Hudson has proven to be an energetic and effective spokesperson for the brand and she has been involved from the very start. One concern of hers has been in the design aspect and she insists on a freshness and uniqueness that helps set apart Fabletics. In addition to their acclaimed designs, they offer an extraordinary value as their fashions are typically half the price of their competitors.
Kate Hudson only takes on projects that she finds authentic and she is quite comfortable wearing Fabletics designs. Her active lifestyle lends itself well to the brand and her considerable appeal gives it an extra boost. She is quite involved with the business in other areas besides design and shows an acumen that has helped the company grow at a rapid pace.
Amazon usually has nothing to worry about, especially when it comes to selling clothing online. This retail giant has been commanding at least 20% of the retail market in this space for a long time, and a new company backed by any celebrity doesn’t rattle their cages often. What is different with Kate Hudson’s Fabletics is her company has already made over $250 million selling her clothing in three short years. If she is not on Amazon’s radar yet, she will be in short order.
Talk to Hudson about her success with Fabletics, and she will tell you how it is a unique marriage of memberships and reverse-showrooming. To see these processes in action is something to behold, because she is blazing a trail not too many clothing retailers would take. Women who come to the Fabletics stores at the mall are encouraged to get their free membership and take part in the Lifestyle Quiz. These are keys to the success of the brand because now these women can shop at the retail stores and try on as much as they like, without having the pressure of having to buy anything for the company to succeed.
Hudson says that women love to try on clothes and shop, but many just don’t have the money at the time to make these purchases. Once home, these women head over to the Fabletics website at their convenience, and all the high-quality workout apparel they tried on is still waiting for them in their shopping cart. Since they have already tried on the clothing, all they have to do now is to find something that appeals to them and off they go.
Hudson says the big bonus of filling out the quiz is you get assigns a personal shopper who uses the results of the quiz combined with your size and selects items each month they think you might be interested in buying. There is no pressure, buy, decline, or keep shopping, this is why Kate Hudson’s Fabletics is such a huge success.
Another reason that her sales are exploding is the athleisure brand is high-quality. These are pieces that look great and wear well. If Amazon is not afraid of the reverse-showrooming experience, they might be surprised in another few years how Kate Hudson’s Fabletics brand commands an even bigger piece of the pie. This company is doing everything to please women, and it appears they have found just the right formula.
Starting a successful online retail company with physical outlets may not look like a smart business move. Nonetheless, athleisure brand Fabletics has successfully managed to juggle the two undertakings. In most cases, retailers start online before opening up physical stores later. By going against the grain, Fabletics has established a name for itself in the e-commerce market. The status quo in the online fashion retail business is already being challenged. This has set the precedence for upcoming retailers.
Tough Balancing Act
Fabletics started as an e-commerce business. Its founders realized that by relying on online stores, the company wouldn’t compete favorably with more established retailers such as Amazon and Warby Parker. To counter this, the founders decided to open physical stores alongside its online store. So far, there are more than 20 physical outlets, which are meant to serve customers who cannot access its online store. Managing both platforms has been a tough balancing act. Nonetheless, it has given the company’s executives the resilience for forge on, and the hunger to succeed.
Fabletics has numerously been compared to the new kid on the block who steals the show from the old guard. Actually, this is true if its profit margins and subscriber numbers are anything to go by. The strategy that has been employed is not only bullish but also ambitious. The company has been seeking to provide its subscribers with real value. It recognizes that e-commerce has taken a new twist with clients preferring high-value brands. Fabletics seeks to satisfy the shipping needs of two categories of clients: those who are comfortable online and offline. This has been the secret behind its impressive growth.
Online Customers’ Database
Fabletics has an extensive database containing its subscriber’s tastes and preferences as far as athletic wear is concerned. Therefore, its stock is customized to suit the preferences of each subscriber. Customers visiting its online and physical stores only see items that are appealing to them. Omnicart software is used to reveal customer’s reactions towards items that are on sale on the online store. This helps its employees to pinpoint unpopular and unappealing merchandise.
Fabletics’ founders Adam Goldenberg, Kate Hudson, and Don Ressler also play an active role in its operations. The three have built a business empire valued at $250 million from scratch. With the expected opening of more locations, this figure is likely to increase exponentially. Its membership subscription model has also made it popular among athleisure enthusiasts since they no longer have to actively participate in shopping; online or offline.