Achieving success in the fashion market, when big brands like Amazon are already thriving and have a market share of 20 percent is not an easy task. However, Fabletics, a start-up by famous Hollywood celebrity and fitness diva Kate Hudson, changed all that when it became a company worth well over $250 million in just over three years.
The company followed a unique reverse showroom method to penetrate the market, wherein they opened an online fashion portal and increased their member base. Once the member base reached a high figure, Fabletics started opening its store across the country. It helped the company carry on with its growth momentum and reach out to a wider audience through real marketing.
The company aimed at providing convenience, high value for money and a brand that is aspirational, inspired by Katie Hudson and providing value for money. The company defined this business model after studying that the brand that is only defined by price and brand image does not guarantee sustainability. Fabletics incorporates some elements to drive success in the competitive market, such as providing high-quality customer experience, brand recognition, innovative designs and flexibility to the client. Fabletics followed the models of a highly successful company such as Apple in positioning the brand in the highly competitive fashion online market, and having much grip online enables the company to open more physical outlets.
The general manager at Fabletics, Gregg Throgmartin, said in an interview that the subscription model of the enterprise allows Fabletics to offer personalized services to its members without having to spend an exorbitant amount of money. Having understood the requirements and preferences of the members through the membership models helps the company to provide customers exactly what they are looking for within their budget. The reverse showroom model of the company has helped the company increase its subscription base considerably because the primary focus is building a relationship with the customer rather than getting sales. Once the customers see the products on offer, and at the price point they are available for the members, Fabletics believe they are more likely to become members.
Fabletics is today the number one athleisure brand in the market today at the price point it deliver. The company continues to add new collections with modern designs to ensure members always have a variety available. The VIP members of the brand are given updates on new designs through the mail each month, and all they need to do is to pick the designs and product they select before 5th.
At present, the company has 16 stores across the country and plans to open much more in the near future. The co-founders of Fabletics, include Katie Hudson, Don Ressler, and Adam Goldberg. Presently, the company has over 1,000 customer support executives and the backend team consist of the workforce of another 400 employees, which signifies the growth the company has witnessed since its inception in 2013. Fabletics have received and continues to receive rave reviews from the customers and has got a strong foothold in the ‘Athleisure’ clothing line in the market.