Amazon is currently the leader in the online fashion market, holding 20% of the market. Kate Hudson’s Fabletics has found the magic formula to help her company grow 250 million in just three years.
Fabletics is an active wear subscription based service. They want to sell simple, convenient and fashionable active wear to members on the go. They have found a way to keep the success going. The price and quality of goods are no longer the combination that means success for any brand. Customer service, brand recognition and game elements are just some of the elements to help a brand succeed. The brand is paying off because of their strategy, they are able to start opening brick stores. Currently, the company has 16 stores in Hawaii, Florida, Illinois, and California. They hope to be added to them soon.
Greg Throgmartin, General Manager, credits their company’s success to the ever-changing brand model. Personalized service and trendy fashion at a low cost allows them to stay on the right path. He says it is easier to help people be happy when you know what the customers want. Their physical stores will help take their membership service to the next level.
Fabletics will use a different model to help them stay successful with their physical stores. Usually, people browse online then go to the store to shop. With Fabletics, customers will browse online and some will be able to go into stores. About 30-50% of those who walk through the doors will already know what they want. This model allows for the brand to build relationships with old customers. New customers will likely see trends they like since the store will be stocked with what the local members are browsing.
Stores will be stocked based on data from multiple sources. Of course, they will use local members browsing history, social media, and other available sources.Their growth is based on the easy accessibility of their product, the people behind the product, and its culture. Kate Hudson is an authentic spokesperson. All these elements combined have helped them to stay ahead of the game and competitive with even Amazon.
Fabletics was launched in 2013 by Kate Hudson and the company’s Co-CEOs Adam Goldenberg and Don Ressler. This was driven by them seeing a gap in the activewear marketplace, where a lot of luxury wear were, but there wasn’t any offering high quality and stylish wear at an affordable price point. Here, they create clothes which inspire people to stay active, even if that means chasing after kids, an Ironman or Ironwoman competition or sweating in the studio. They offer high-quality trendy designs at very affordable prices, which is where the encouragement begins. They live by the Mantra, ‘Live Your Passion’, where they foster a community of people who embrace it.
How Fabletics Works
They have two ways to checkout, that being a Guest where you go back whenever you feel ready or as a VIP where you shop for pun perks and exceptional savings. As a VIP, Fabletics offers a membership programme where a member saves extending to 50% off normal pricing and earns points on the way to complimentary loyalty pieces. The VIPs have a choice to shop each month or skip the month. In the case of skipping the month by 5th of the month, they don’t get charged. Failure to skip, the company charges 44 Euros on the 6th of the month until the customer cancels, which can be capitalized as a credit to save or spend.
How Reverse Showroom Technique Has Made Fabletics Successful
Reverse showroom game plan involves directing its goals on consumers who check-over online for stuff but buy them in brick-and-mortar stores. This method has made Fabletics members increase, bettered the relationships between them and the local markets and increased the loyalty of the brand. Fabletics has interspersed their local stores and website so seamlessly, that when a customer in a local store is trying clothes, the data is reserved in the website’s shopping cart thus leading to an addition of new members in the stores. However, Kate believes in the need for content marketing in brand building.
Kate Hudson’s Take on the Winning Athleisure Brand
Kate believes that as the company’s goal was to have the best products, it has taken a lot for them to get where they are. Communication being their priority, they also partner with their parent company, TechStyle Fashion Group which has helped to give energy to the growth. It is encouraged to log into Fabletics site, to take a quiz which about outfits that fits a customer well.