Kate Hudson’s Fabletics Dominating in a Market Amazon Has Owned

Unless you have been sound asleep under a rock for the last ten years, you know when it comes to the sale of online apparel that no one can compete with Amazon. They have been commanding 20 percent of all online apparel sales in a niche where thousands are doing anything to get the edge over one another. Now enter into the conversation Kate Hudson’s Fabletics, a company that is bucking the trends and going after Amazon head on. In the last few years, Kate Hudson’s Fabletics sold $250 million of their women’s workout apparel.


To understand why this company has been able to do what so many others have failed at, we only need to talk with Hudson herself to get the dirt. When she talks about the success of Fabletics, it all comes town to a few key sales fundamentals, reverse showrooming and membership benefits. There has to be more to this than those two components, yet Hudson says take a ride to one of her retail stores and you will see exactly for yourself how they are the foundation to everything that makes her company thrive today. Inside the mall stores, you see women trying on yoga pants, window-shopping, even taking the Fabletics Lifestyle Quiz. When women leave the store without buying, you might think this is a sign the company is headed into a downward spiral.


The reason women are leaving the store without buying may actually surprise you, and is the key to the success of this athleisure brand.


Now these women all know that by trying on the active-wear inside the mall stores triggers those items to be uploaded to their online Fabletics account. What that means is they can shop online at their convenience, knowing the sizes they already tried on fit them perfectly. When they return to the Fabletics site, they can choose new arrivals, new colors, all based on the size they already know is perfect.


Add into this mix numerous Fabletics customer membership perks like free shipping for all future orders, discounts on all workout apparel, even the assistance of a Kate Hudson’s Fabletics personal shopping assistant. This is how you turn a shopper to a loyal customer, you pamper them at every stage of the buying process and give them reasons to come back each month for more. Amazon charges its customer for a membership that only offers discounted shipping, part of the reason Fabletics is growing its bottom line.

Fabletics Taking Over “Athleisure” Space Even After Tough Competition From Amazon

Fabletics is an “Athleisure” brand that took over the fashion retail market by storm as soon as it launched in 2013. The company has been growing and revenue since its inception and today have a workforce of 1,400 employees, with 1,000 of them dedicated to the customer service. At present, Fabletics, a subsidiary of StyleTech Fashion Group, does an annual business of over $250 million, a figure which is expected to grow exponentially in the years to come. Fabletics entered the fashion retail market, where giants like Amazon already enjoys a market share of more than 20 percent, but irrespective of the competition, it managed to stay, sustain and grow.


Fabletics is Co-founded and co-owned by Don Ressler, Adam Goldenberg, and Kate Hudson. One of the factors that worked well for the company is the popularity of Kate Hudson, who is an inspiration for many women as a fitness diva. As Fabletics is an “Athleisure” brand, the fame of Kate Hudson helped trigger the constant flow of members to its subscription model. And, thanks to the concept of Fabletics as a brand that aims to offer high value to its customers without costing a fortune, the growth momentum continued sustainably. Fabletics has been growing at a staggering pace of close to 35 percent each year, even after heavy competition from the other leading retail giants, including Amazon. Shawn Gold, the Corporate Marketing Officer at TechStyle Fashion Group, says that the reason why Fabletics has been able to continue to keep pace is that it offers quality products and great designs at an affordable price point in a market where buying branded merchandise and clothing is associated with spending a fortune.


Fabletics also used reverse showroom technique to its advantage, which helped the company to reach out to a wider market and expand its customer base. Through the reverse showroom method, the company aimed at achieving considerable success with online branding and marketing before opening physical outlets. Fabletics has a total of 18 stores spread through California, Illinois, Florida, and Hawaii, which are the booming fashion markets. Here the company has opened at strategic points to help with its outreach and make the potential customers understand its subscription model, which is one of the major contributors to its success.


Once the company is established and well-reviewed online, it becomes easier to convert the customers when they enter its physical outlets. And, this strategy is working well for Fabletics, which has been able to convert around 30 percent of the potential customers visiting the store into VIP members. In the subscription model, Fabletics provides a personalized shopping experience to the end users by understanding their lifestyle, preferences, and fashion choices. Fabletics believe that it becomes easier to make customers a loyal patron when you offer customers exactly what they are looking for at the price point that’s affordable, and subscription model achieves that precisely.


If you are looking to become a VIP member of Fabletics, don’t forget to take their Lifestyle Quiz that would show you how the company personalizes the shopping experience for its customers.

Fabletics competes with Amazon in the activewear marketplace

Everyone needs clothing for protection. However, clothing in the current generation plays a critical role in fashion. One thing is sure; people have to look good. To many individuals, their body shape is a key determinant to how good they look. However, in some instances, a proper clothing can change how one looks completely. That is where fashion people comes in. People that discovered fashion find people’s body shapes and find ways that they can look and feel good.


Fabletics entered the e-commerce market in 2013. The company started three years ago and has achieved incredible success. The company has built its business by focusing on a subscription business model. According to Kate Hudson, the co-founder and brand ambassador of the firm, customers can get a discount when they choose to apply for membership. The only thing that the business requests of customers is for part of their time to apply for the subscription. Fabletics has attracted the attention of many buyers in the activewear industry.


Fabletics offers discounts to customers on their first purchase. The discount goes in exchange for signing up for membership. Fabletics business model has strived to retain customers. It functions a different business model, unlike other stores that only want to get their products out there. Through this business strategy, Fabletics has created a reverse showrooming business plan. Showrooming is a business where buyers get to view goods and later decided to purchase them at cheaper locations. Fabletics membership business model has retained customers that stick with the company for long. Unlike other retailers, Fabletics has created a better relationship with buyers ensuring that they always purchase from the enterprise.


The showrooming business has come about mainly because of the availability of the internet. Before the internet, the main thing that determined the success of a product were its price and quality. However, the advent of the web has changed how business works. Customer experience has risen to become the most important thing to determine a brand’s success. Among other things that define the success of a product include its design and how well-recognized the brand is. In other words, a company that brings something better to the table is meant to be a success. The easy accessibility to information means that services provided by a firm are easy to find. Fabletics has built its business model on the strategies and has become highly successful.


Fabletics has grown to compete with giants in the marketplace such as Amazon in the activewear clothing. Kate Hudson is a major reason for the rising popularity of the company. She believes in great products and a great style. She can thus be taken seriously when it comes to the fashion and introducing new products. She is one of the founders of the company and has played a lead role in advertising the business. She posts videos and pictures of Fabletics clothing through her Instagram page.