In three years, Kate Hudson’s athleisure company has grown a 250 million dollar revenue run rate, succeeding at a time where Amazon controls at least 20 percent of the fashion e-commerce market. The company was launched in 2013 by the mother of two; a brand developed on a flexible membership model. Boasting over a million members in a market dominated by a slew of powerhouses, Fabletics allows its supporters to shop from a verity of new styles each month. It also plans to launch online workout classes and wellness content to empower women and encourage them to be active for healthy living. Currently, Fabletics uses the subscription mechanic approach to sell athletic wear to its customers.
Kate Hudson’s company has succeeded due to its convenience, and high membership, focusing more on making its brand inspirational. Fabletics strategy has been based on brand recognition, customer experience, and exclusive design, and this has, in turn, payed off given that the company is on its way to opening more physical stores adding to the sixteen already open in Illinois, California, Hawaii, and Florida.
The Effects of Reverse Showrooming
Although showrooming has played on the negative for most companies, it has instead worked positively for Fabletics. The strategy used by the company has been seen to help in building relationships, allowing them to get to know the market better. This is why at least 25 percent of people walking into the stores end up becoming members. Fabletics stocks its variety based on members’ preferences, real-time sales activity, and online sentiment.
Kate Hudson’s take on the Winning Athleisure Brand
The winning actress and sports enthusiast Kate Hudson has seen her company grow to beat industry long-term leaders like Nike and Athleta in terms of pricing and quality. The company is also using big data to track the buying preference of consumers and accurately predict future demand. In her journey of building fashionable fitness wear, Hudson has learned many lessons.
For instance, in a market flooded by expensive activewear, the way out to winning was to identify opportunities and zone in a space others did not see. Not only did she cut prices, but also decided to design attires of different sizes and shapes. She was also inspired to create clothes that would encourage workout, especially since most Americans struggle with health issues. Also, new collections are launched every month.
Unlike most companies, Fabletics can be defined as a risk-positive brand that fully understands its customers. In today’s fashion industry, it is impossible to build a brand without considering the strategies of competing with Amazon. Fabletics sets itself apart in the platform by offering exclusive products, incorporating data science, and enterprise technology. When making a purchase, it is advisable for you to take the lifestyle quiz to identify the apparel that best suits you.