Amazon owns over a fifth of the fashion industry online today, so it’s no easy task to compete with them. However, Fabletics by Kate Hudson is doing just that, having grown a whopping $250 million in the last 3 years already. They’re riding the wave of the new activewear trend sweeping the nation. By leveraging subscriptions, the brand allows customers to conveniently order again and again, in an attempt to satisfy the aspiration of attaining the feelings associated with the clothing. This makes a great combo.
Fabletics is dominating their sector and growing quickly thanks to using the principles of scale, data, customization, authenticity, quality, and affordability. Specifically, they call this the reverse showroom model. In this day and age, it seems everyone is always on their smartphones or another online device. Fabletics uses this by collecting shopping data, social media sentiments, and global fashion trends.
They analyze this data and determine where to start a physical store, called a “pop-up” store due to its temporary nature. The items that are stocked in the store will be determined by what the local market wants, based on their search history. That way, when a customer walk in, they’re likely already a member because they actually found out about the store online first and browsed. And they’re more likely to sign up as a member and order clothes in the future.
And because they are so committed to quality and customer service, the brand rapidly grew. They grew over 100% in 2014, and almost 50% in 2016. Over 1.2 million members proudly purchased Fabletics gear in 2017, which is significant in retail and represented a 600% increase over the previous year.
Their meteoric rise to success is surprising to many in the industry. This is because the genre in which it operates, called “athleisure,” has historically been overpriced, not stylish, and low quality. But the founders of Fabletics, Don Ressler and Adam Goldberg, wanted to change the game. However, to change it, they knew they needed a partner. Their first natural choice was Kate Hudson.
The reasons are that she is so approachable, she’s funny, and she leads an active lifestyle. Kate isn’t just a pretty face to attach to the brand, either. She has been heavily involved in crucial decisions from the start. These include budget meetings, social media strategies, and more. Her sharp eye for fashion helped the team select designs that would really resonate with the modern female. She even has her eyes on the sales numbers on a weekly basis.
Kate Hudson weighed in herself. She wanted to make sure that communication was a top priority. They improved their customer service, changed their technology to ensure their inventory was well kept, and in about a year and a half time span they earned a top rating from the BBB and improved their score for customer satisfaction. Still, she identifies as “an actor, through and through,” while enjoying her business success.