From its launch in 2013, it’s been clear that Fabletics, the athletic apparel company created by movie star Kate Hudson, is unlike any other workout gear brand out there. Hudson’s knack for developing innovative business strategies has set the brand apart from its competitors and has allowed it to become the $250 million company that it is today.
Fabletics sells cute and fashionable workout clothes made with high-quality materials. The brand is affordable and offers a wide variety of apparel items like leggings, sports bras and jersey knit dresses.
What makes the Fabletics business model unique is its subscription service option. Known as the VIP membership program, this option allows customers to pay $49.95 each month in exchange for a monthly workout outfit that is shipped to their home.
Fabletics selects a variety of outfits for each subscriber to choose from using data collected from a lifestyle quiz. When a customer signs up to join the program, they take this quiz, giving Fabletics insight into each subscriber’s product preferences.
The Reverse Showroom
The brand’s latest innovation is the reverse showroom strategy. While most retailers first set up a physical store and then expand into online retail, Hudson has established the brand’s online presence before launching brick-and-mortar stores around the country. These Fabletics stores are mainly vehicles for getting more customers to join the VIP membership program. By letting customers try on Fabletics clothes in person, they trust the brand’s dedication to quality and are therefore more likely to sign up.
As of now, about 25 percent of customers who have made a purchase in a Fabletics physical store have become VIP members. Thanks to the success of the strategy, Hudson will be launching more stores in the next few years.
The Rules of Fabletics
Hudson has been very outspoken about her brand’s priorities since its launch. Her goal was to create a brand that was as inclusive as possible. For example, Fabletics carries a wider variety of sizes than its competitors. Hudson also strives to keep her products affordable so that a more diverse group of women can have access to the company.
Hudson’s fearless approach to taking business risks is undoubtedly the biggest key to the company’s success. Because of her bold approach to running a fashion business, Hudson has inspired a new generation of entrepreneurs.
To join the Fabletics VIP membership program, visit the brand’s website and take the lifestyle quiz today.