Kate Hudson has managed to grow Fabletics to be worth $250 million in just three short years where Amazon already controls 20% in the fashion market. Fabletics uses a subscription service to sell its clothing and the mix of membership and convenience has proven to be quite the successful model.
Brands have traditionally been considered high end by their price and quality but in today’s market consumers see a product worth the money if it comes with a good customer service, is a brand that is recognized, and has an exclusive design. Other factors of a good brand include gamification elements and last-mile service. Fabletics plans to open more physical stores in Illinois, Hawaii, California, and Florida.
According to Gregg Throgmartin, the General Manager of Fabletics, it has become such a successful company so quickly because of its membership model that allows personalized service and trendy fashion at a great price.
Fabletics has avoided the usual pop-up store method and has gone with building relationships and has relied on getting to know the local market through activities and other events. This has resulted in 30-50% of the customers that come to their physical stores being members and another 255 becoming members in-store.
Kate Hudson has been able to identify the opportunities for marketing and seeing how most of the active wear on the market was expensive, zoned in on a retail opportunity that was overlooked. Her clothing line ranges form XXS to 3X to give her customers a lot of variety while keeping her market open. Hudson believes it is important for everyone to live a healthy lifestyle and encourages that through her clothing line.
Hudson keeps an eye on what sells and what doesn’t and she relies on data collected by her company to better design her collections. The Lifestyle Quiz that new members complete when they sign up to be a member of the Fabletics club has proven very useful in finding out exactly what the customer wants.
Hudson gets a lot of her inspiration form her mother, Goldie Hawn and believe it is important to believe in yourself and to take risks. Her motto is to live what you are passionate about and to focus on what matters the most to you so that you can become truly fearless. Fabletics has become very successful because it is a company that is in-tune to what the customer wants.