Kate Hudson Has Put Fabulous into Fabletics

Kate Hudson’s rapidly growing activewear brand, Fabletics, is taking the fashion e-commerce market by storm. Hudson’s brand has grown into a company that’s worth $250 million in just three years—posing a threat to online giant Amazon, which at present controls around 20 percent of this market.

 

Fabletics uses a novel approach to its sales. Members subscribe to the aspirational brand, and when combined with the convenience of e-commerce, has turned out to be a recipe for surefire success. High-end brands’ traditional elements such as price point and quality no longer guarantee sales. Today’s customers are savvy enough to place value on different aspects like customer experience, gamification, exclusive design and last-mile service.

 

In addition to e-commerce, Fabletics has been poised to open additional physical stores as well, to add to the sixteen that are already open in California (of course!) Florida, Hawaii and Illinois.

 

From its very beginnings, Fabletics set out to construct a reimagined version of what a modern high-end brand should be—and key to this has been its membership model, which allows Fabletics, at half the price of competitor brands, to provide the latest trends in activewear and personalized service to its members simultaneously, according to Gregg Throgmartin, Fabletics’ General Manager. He asserts that when a company knows who their members are, and what they want, then it’s so much easier to keep them satisfied.

 

What sets Fabletics’ physical stores above the rest?

 

For one, they do “reverse showrooming.” Traditionally, showrooming has been bad for brands, as people have seen what they like among high-value stores, and yet went for similar but less pricey items in other places. But since Fabletics started out in e-commerce, they’ve already established good relationships with their members, who go out of their way to also purchase items at Fabletics’ physical stores. And many walk ins at the stores become members themselves. Simply put, Fabletics knows its members very well, and through events and other activities, has grown its membership even more. Additionally, Fabletics keeps track of members’ choices, as these end up in the members’ online carts. For Fabletics, there is really no difference between buying online and in the physical stores—retail is just part of the many services they provide.

 

Secondly, Fabletics makes excellent use of online data, keeping items in stock in local physical stores that the members are likely to want, and as tastes and trends change, adjustments in the stock are also made accordingly. This is made possible by analysis of preferences based on data Fabletics collects from their members. Social media, real-time sales and store heat-mapping are taken into consideration carefully in planning and preparing the stocks for each physical store.

 

Finally, Fabletics credits its growth to their concentration on people, culture and accessibility. The company has grown by 35 percent yearly. Value for money, a spokeswoman with authenticity and its very own creative and media teams are what’s making Fabletics a tremendous success across the globe.

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