Kate Hudson and Fabletics Is Finding Success In The Apparel World

They say that the apparel world is a cutthroat business where hot brands can suddenly cool off at a moment’s notice. And forget about new brands trying to break into the exclusive club. So it comes as a surprise when a new brand explodes on the scene and not only rises to the top but does so in an unconventional way. A brand that has, of all things, a young Hollywood starlet as one of its corporate leaders.

 

Welcome to the world of Fabletics. What is known as one of the first big brands in the activewear segment, Fabletics has been able to break into a tough market that has been dominated by Amazon, who owns a staggering 20% of the overall apparel market.

 

Fabletics is best known for having Hollywood actress Kate Hudson as one of the principal owners as well as the face of the company. As a yoga and fitness enthusiasts, Miss Hudson is considered a natural fit for the brand. And the results? Fabletics has grown to become a $250 million dollar business in just three years.

 

So what is the secret to the company’s success? Fabletics has pioneered the practice of “Reverse Showrooming.” Most retail companies are hurt by customers who “Showroom” their goods – examining the goods at the store and then buying them online from someone else. With “reverse showrooming,” Fabletics encourages customers to become members. And when a customer browses an item, the item immediately becomes available in their online cart. The result is a much higher conversion rate per customer. Also, this practice prevents Fabletics from losing potential sales to their competitors.

 

Another secret to Fabletics marketing effectiveness is their ability to use local data to customize their physical stores to fit specific markets. Stores are stocked according to the preferences of customers in a given area. This information also allows each store to tweak and refine their stock to adjust to changing tastes and trends.

 

Based in El Segundo, California, Fabletics operates 22 physical stores along with their e-commerce site. The company also operates a membership service that delivers new products to their members.

 

Founded in July 2013 by Adam Goldenberg, Don Ressler, and Kate Hudson, Fabletics is one of the fastest growing appeal companies in the world. The company has grown an average of 35% in each year of its existence. In September 2017, the company announced that it would be expanding into the footwear segment with a line of lifestyle, slip-on and workout sneakers.

The Rise of Fabletics.

Kate Hudson has made it big when it comes to activewear. This success is not a walk in the park, especially considering that Amazon controls a fifth of the fashion market.

This percentage means that eighty percent of the market remains to the rest of the competitors for scrambling and partitioning.

In three years, Kate has been able to grow her start-up into a two hundred and fifty million dollar enterprise which keeps increasing by the day. To do this, she has made changes to the conventional means that people relied upon in the past.

A decade ago, the only way that one could guarantee success regarding sales was to either produce high-quality clothes or to sell your merchandise at discounted prices.

Fabletics uses a subscription technique to keep customers coming. The reasoning behind this approach is that customers love the convenience and if you mix it up a little with an aspirational brand, you have the key to breaking through in the fashion industry.

Customers are now looking for excellent customer service, excellent delivery, and great designs.

Reverse showrooming

Most clothing suppliers are getting pushed out of business because of showrooming. Showrooming is where a customer goes online and sees a good item then heads elsewhere to get it at a lower price.

With Fabletics, most customers who go to their stores are already members and whatever one chooses at the store automatically gets into their online shopping cart.

In this way, it will not matter whether the clothing is bought at the store or online as Fabletics will benefit either way. Fabletics considers retail to be another part of the business which helps them embrace showrooming.

The rise of Fabletics

Kate has shown a lot of commitment to Fabletics and has taken active part from the start. Where many celebrities endorse products that they do not necessarily believe in or use, Kate uses the Fabletics activewear.

Fabletics has experienced positive feedback from other celebrities such as Demi Lovato who has heaped praises on the wear.

According to Demi, one of the main reasons that the clothes have become so popular is that they are available for all types of women. Whatever the shape of the woman, she will find something that fits her.

Through the use of technology in their membership programs, it is quite easy for customers to get outfits that are perfect for them. By taking part in the Lifestyle Quiz, you can find out which gear is ideal for you.

Kate Hudson’s Fabletics Challenges Amazon for Clothing Sales

If you were to realize how many clothing companies are all competing for the same customers, then you would understand how impressive that it is that Amazon is making 20 percent of all those sales. With thousands of companies all wanting a share of that revenue, it can be hard to close that gap to Amazon when they command that big of a chunk of the pie. Out of nowhere we have a clothing company that is challenging Amazon for those clothing sales, and Kate Hudson’s Fabletics does not appear to be losing any steam in the process. They have sold over $250 million in three years of women’s active-wear and workout clothing.

 

To get a better understanding why this particular athleisure brand has become so successful, listen to Hudson talk about the two key fundamentals of the brand, reverse showrooming and membership perks. Hudson knows the fashion e-commerce market is extremely competitive, but somehow these two processes are working for her brand. Just take a look inside the local Fabletics store in any mall. Women are getting their memberships, taking the lifestyle quiz, window-shopping, or trying on all the workout apparel that they can. Sales associates do not pressure these shoppers to make a purchase, and many leave the store without buying anything.

 

The piece of the puzzle that ties everything together is when customers visit the online store. The Fabletics e-commerce store is connect to the retail store, so when you try something on in the store at the mall, it gets uploaded to your account online. This makes it a breeze to just pick up shopping when you have time later in the day or week. Now since the issue of correct sizing has been eliminated because you already wore the clothing, all you have to do is shop the racks for whatever impulse buys grab your attention.

 

The membership perks at Kate Hudson’s Fabletics are numerous, including free shipping for all future orders, discounts on all the yoga pants, leggings, and tank tops, and even your very own personal shopping assistant. Your personal shopper reviews your quiz answers and will pick a piece of active-wear they think you will love, then they drop it in your cart the first of the month for your consideration. This is a formula working for Kate Hudson’s Fabletics and giving them the power to challenge Amazon for those women’s clothing sales.