The Fabletics brand was launched in July of 2013 by actress Kate Hudson and partners Adam Goldenberg and Don Ressler. The company is an online retailer that sells women’s sports gear and footwear, as well as accessories. Customers can sign up for VIP membership with the store and receive personalized item suggestions every month for only $49.95. During the sign up process customers take what is called a Lifestyle Quiz, which the store will use for handpicking items for them based on their own personal style and preferences.
Two years after this online subscription store was opened, Fabletics also opened up a brick and mortar store, and Forbes magazine reported that between 75 to 100 more stores will be opening over the next 3 to 5 years. Because of how the business is run, and its steadily growing revenue, it has become a serious competitor for the ever-popular Amazon, which is seen as being one of the biggest sellers of fashion items.
Kate Hudson expressed the reasons why she wanted to start a company such as this, inclusion being the biggest one. She said that she wanted women of all sizes, ages, shapes and abilities to be able to feel confident in the clothes, and that she wanted women to get excited about being active. She felt that offering her brand at a more affordable price would accomplish this.
Within 3 years, Kate and her partners saw revenue that totaled over $200 million. The strategy they used to grow the business involved building relationships with customers by offering personalized service and keeping their prices reasonable. They used what is referred to as reverse showrooming, which means that instead of people browsing in offline stores then going elsewhere to buy the items at a cheaper price, they would offer customers free VIP membership so that they could benefit from continuous low prices on their merchandise.
As a result of this way of doing business, 30 to 50% of the customers who go to their physical or brick and mortar store already have VIP membership, and another 25% sign up for membership while they are in the store. There are also other ways that they attract customers, such as through certain events having to do with sports or living an active lifestyle.
Customers who use their online service will get to choose their first piece of clothing for only around $25, then they will receive an email at the beginning of every month showing them new items that have been selected for them according to their style preferences. The customer will then have until the 5th of the month to decide whether they want the item or not. If they don’t want to shop for that month, they can opt to hit the Skip button.
If a purchase is not made within a particular month, then the $49.95 membership payment they collect from the customer will be stored as a credit that they can use on future purchases. And VIP membership can be cancelled at any time by the customer by calling the store.
Anyone who is interested in becoming a VIP member of this athleisure brand store can go to their website and take the Lifetime Quiz at any time to see which Fabletics outfits will look the best on them.