Tasting success in fashion is not an easy feat especially when 20% of the e-commerce market is under Amazon. However, Kate Hudson’s Fabletics has managed to do just that and grow a business worth $250 million in the process in three years. Fabletics has succeeded in bringing about the ‘activewear’ movement and relies on a subscription mechanic to move its sales. Customers love the brand due to its inspirational nature and the way it pushes them. When these two values are mixed with the membership aspect and convenience, a dominant combination ensues.
Shift in Economics
Traditionally, soaring value brands were characterized by their quality and price. However, this is not the case as there have been a shift in economics and this combination does not guarantee success or competitiveness. Brand recognition, customer service, last-mile service and exclusive designs are the new determinants of high value brands to new customers. Fabletics compares itself to brands such as Warby Parker and Apple and its positioning and strategy are finally paying off for the brand as it is set to open more new stores.
Secret to Success
According to Gregg Throgmartin, Fabletics’ general manager, the brand focused on building a fresh and contemporary edition of a high-flying brand. The membership mechanic enables it tender the trending fashion craze and tailored services to its customers at half prices measured up to the competitors. This membership mechanic helps the brand understand its customers and know their preferences. Fabletics has also mastered the art of controlling the reverse showrooming technique to its advantage. It has managed to turn browsing into a positive experience. The unique approach applied by the brand makes it easier to build relationships with customers and almost 35% of all its customers are members and a further 25% are converted in store. Any item that a customer tries in the store reflects on their online shopping cart as well.
Kate Hudson’s Take on Fabletics
Adam Goldenberg and Don Ressler founded TechStyle Fashion Group and brought in Kate Hudson as she was the perfect partner to help them change the industry of athleisure wear for women. Kate Hudson was approachable, easy going and led an active lifestyle. Kate got deeply involved with the brand from the first day. She was active in reviewing budgets and picking social media strategies. She is involved in the design process and ensuring designs remain fresh. She is also concerned with the sales and notes the fast and slow selling brands. Kate also wears the brand she endorses unlike many other celebrities.