Kate Hudson’s Fabletics has been building a $250 million business for the past three years. It is a great achievement considering that Amazon has control over 20% of the fashion market (e-commerce). Kate Hudson’s Fabletics is not successful because of luck but a combination of different strategies. After customers have transacted with them, they automatically become members. Membership with Fabletics means that the client is never inconvenienced and the service is incredible. Fabletics, which is part of the “activewear movement,” aims at attracting more people to buy their products using this method.
One may wonder what makes a product be defined as being of high value in the 21st century. Traditionally, it was common that the more expensive a service or product was, the better the quality. Nowadays, customers no longer base their judgments on prices but things such as personalized designs, customer experience, and brand recognition. Currently, Fabletics boasts of 16 physical stores which are located in states like Florida, Hawaii, and California. The idea of introducing membership plans is paying off and very soon a couple of physical stores will be added in other places.
The General Manager of Fabletics, Gregg Throgmartin believes that the secret to their success is their membership model. It allows the company to focus on personalizing products for their customers and offering products which are trending at half the price of other commodities of the same caliber. Showrooming is one of the problems faced by competitors of Fabletics; Customers come, look at the products then go and buy the same products at a cheaper place.
The technique they use is known as “reverse showrooming,” and it has proved to be vital to their success. The system focuses on building relationships with customers. The effect this has is that a good number of people who visit their stores are members. Most of those who are non-members sign up once they enter the store. This method has proved to be instrumental in attracting and keeping local customers.
Fabletics usually uses online data to determine the preferences of the customers and then in turn place them in their physical stores because that is what will attract them. The trends in social media or the current sales activity are also factors that the marketing team keeps in mind when stocking up their physical stores. The main idea is keeping the brand alive and ensuring that the customer is satisfied.
The Fabletics brand was formed in 2013 after Kate Hudson teamed up with the owners of JustFab Inc. Adam Goldenberg and Don Ressler. The decision to start Fabletics was due to the gap they had noticed in activewear market. There were many luxury brands but none of the offered quality and stylish products at an affordable price. Kate Hudson is an actress and fashion tastemaker with a desire of helping others. She is a fitness enthusiast and part of the reason she helped found Fabletics was to help women stay fit. The company strives to provide products which match the tastes of their customers and offers excellent services to keep them.