When Fabletics was born, Kate Hudson gave to women all over the world just what they were looking for. What they wanted was simple – gym clothes that are comfortable and at the same time look absolutely fabulous.
Born in 2013, the active and leisure wear brand was the brainchild of Adam Goldenberg, Don Ressler, and Kate Hudson. Since then, the brand has seen tremendous growth, shaping up into a $250 million company over the span of three years.
Being successful in an industry where twenty of the market share is controlled by Amazon is no easy task. However, Kate Hudson’s Fabletics, by being part of the active wear movement, has managed to be a pioneer in such a diluted market segment.
One of the reasons Fabletics has succeeded as a brand, besides their activewear looking like a stellar piece of clothing straight out of a fashion magazine, is their business strategy. Fabletics uses a simple subscription-based model to sell to its consumers. It follows a simple system of giving the customers exactly what they want and need in terms of activewear, by letting consumers choose their sport and then showing them options that fit their needs perfectly. Customers can select the subscription plan, which entails them to receive new sets of activewear every month.
Fabletics serves as a convenient and time-saving process to get the latest active wear outfits delivered right to your doorstep, every month of your subscription. With the growth of the brand, six stores were opened up in 2015, and subsequently, sixteen more were opened in 2016.
In a market where in-store purchasing and showrooming is in the midst of a cutthroat competition, simply owing to the number of stores and availability of online shopping, Fabletics decided to try a new market strategy to attract new customers and better serve returning ones.
This strategy known as the reverse showroom technique has proved to significantly aid the brand and customers alike. With the adoption of this strategy, customers can view the outfits and products online on the Fabletics website and then go to one of the many the showrooms and try on the clothes they have picked in their online cart. From there, customers are then given an opportunity to either pay in store or choose to add or keep things in their online cart which they can then purchase at the convenience of their homes.
The aim of this move is to help the brand build stronger relationships with its consumers while offering them a better shopping experience. The aim of the offline store isn’t to make the customer buy the product, but merely try it on and have access to look at it in person before they make their decision. In other words, the store serves as an aid to help customers choose the perfect active and leisure wear which they can later purchase online.
Fabletics believes that its growth is reliant on its customers and their culture. To the brand, establishing loyal relationships with the customers is one of its main objectives. For this purpose, to supplement the reverse showroom technique, Fabletics also developed a system where it maintains the data of all the products in stock and ensures that only those products are shown in stores for greater appeal to its customers. All of this data is sourced from the activity happening in-store, social media updates of people about the brand and data regarding the heat-mapping of the particular store.
Today, the growth rate of the company is at an all-time high of thirty-five percent.