Kate Hudson is a very popular and highly sought after actress. While she became famous for her acting ability and her famous family, she is becoming well known now as a successful business woman. She helped create what is becoming one of the fastest growing clothing companies and is taking on giants like Amazon and large retailers in a big way. Her company, Fablectics, is revolutionizing the athletic apparel industry and becoming quite the success story while doing so.
Fablectics was created and launched by Kate Hudson and Co-CEO’s, Don Ressler and Adam Goldenberg. They started the company when they noticed a hole in the activewear industry. There were plenty of luxury brands of activewear, but none that offered affordable, stylish wear that everyday people could afford. Not only activewear that people could afford, activewear people would enjoy wearing and find stylish and trendy as well. With these ideas in mind, these three people launched Fablectics in 2013, and the quick success of their company shows that they did stumble onto a need in the activewear clothing market.
Fablectics business model is to sell activewear to consumers through a subscription service. Consumers like companies that are unique, but that allow them to show their personality in a comfortable and affordable way. Mix their fantastic, comfortable activewear with the convenience of a membership, you have a wonderful combination for consumers and sales.
The customer starts their subscription by taking a quiz to customize their choices and shopping experience. Their website then becomes like a personal shopper and is tailored to their unique style and preference. Once you have preferences set, you get new comfortable activewear delivered to you at an affordable price. Comfort, style, and convenience without leaving your house.
This model has equaled success for Fabletics. The membership has allowed them to personalize each customer’s experience. They are able to offer them trendy, high end activewear for a fraction of the price of their competitors. Such personalized services makes for happier customers because customers are happy when they receive what that want with great service and even better prices.
Many traditional brick and mortar stores are suffering from people coming into their stores to browse, and then purchasing those items online cheaper. Fablectics has changed that model and is using it for their benefit. Instead of online shopping being a negative for business, they are turning browsing in store and buying online into a positive. Fablectics stores have been built to learn more about their local markets through events and activities. Thirty to fifty percent of those who enter their stores are already Fablectics members. Another twenty five percent become members in store. Then when a customer shops in the store and tries clothing on, it goes into their online shopping cart as well, making it an interactive experience. For Fablectics, it does not matter if the customer buys in their store or online, their retail stores have just become another element of service for their customers.