Amazon currently controls about 20% of the fashion market, so succeeding has been no small feat for Kate Hudson’s Fabletics company. In fact, Fabletics has not only succeeded but has grown to be worth $250 million in just three years.
Fabletics has become so successful because it is in tune with what the customer really wants and uses a subscription to sell trendy clothing to its customers. Throw in convenience with a membership and aspiration clothing collections and you have a winning mix.
High value brands have traditionally been though of as items that defined by the quality and price or even services, but in today’s market, brand recognition, customer service, and exclusive design is what customers are seeking out these days.
Fabletics plans to open additional physical stores in Florida, California, Hawaii, and Illinois. Their membership model makes it possible for the company to offer service that is personalized and trendy for about half the price of its competitors.
Fabletics is using reverse showrooming and has avoided the usual pop-up store route and has instead built relationships and gotten to know the local markets. 30% to 50% of the customers that walk through the doors of their stores are already members and about 25% become subscription members.
Hudson has used many strategies in order to become so successful. First off, Hudson designs active wear for every shape and size. This helps to keep the market open to everyone and doesn’t exclude anyone form living a more healthy lifestyle, which is what Hudson is trying to do through her active wear clothing line. The sizes of her clothing range form XXS to 3X.
Hudson also stays very hands on, so she can keep an eye on what is selling and what isn’t selling. She review sales every week and believe that it is important to be creative with marketing and design in order to run a successful company.
When a new member becomes a part of the Fabletics team, they have to take a Personality Quiz, which really helps to not only get personalized service, but it also gives Fabletics a good idea of what the customer wants.
Inspired by her mother, Goldie Hawn, Hudson has a motto to “live your passion” and to focus on what is the most important. She also believes that it is very important to keep that in perspective because it will make you fearless.