A Look at Fabletics’ Business Strategy
Kate Hudson’s Fabletics has beaten many odds in its growth, considering Amazon already has 20 percent control of the e-commerce market and the presence of other fast scaling e-commerce companies like Warby Parker, Bonobos, and Lululemon. The $250million business has grown in three years. It uses a subscription mechanic to sell clothing to its customers. In addition to price and quality of goods and services, the success and competitiveness of a given product also depend on customer experience, brand recognition, exclusive design, last-mile service and gamification elements, these new determiners have successfully been met by Fabletics and are paying off.
They will be opening new physical stores this year, to add onto the sixteen that they already have open in places such as California, Florida, and Hawaii. This is aimed at enhancing the overall brand experience.Their positioning and strategy have contributed a lot to their success.Fabletic’s general manager says that their membership model allows them to offer personalized services and latest fashion. Its members get customized outfits based on their fashion preferences and their lifestyle at half the price of their competitors.In the stores, they get to touch, feel, and see the high-quality fabrics.
Fabletics is a stylish, reasonably priced good quality athleisure brand. It did its first collaboration with pop superstar Demi Lovato in June 2017. She had a lot of praises for Fabletics, most importantly she stated that she loves what they stand for and the fact that their clothes are so cute and that the company inspires women to be the best version of themselves despite their size or age. It has been a trendy athleisure brand that has always been inclusive and empowering to its customers.
Don Ressler and Adam Goldenberg approached Kate when they were starting because they believed she represented what they wanted Fabletics to be. They consider her an approachable individual with an active lifestyle. Kate Hudson has been highly involved from the start. She takes part in most activities, ranging from reviewing budgets to picking social media strategies and the design of the clothes. She is also keen on the sales.Fabletic’s partnership with its parent company which had resources and experience in online fashion was a boost to the business.
Fabletics are fanatical about quality and customer service, and for this, reason, it has experienced rapid growth since when it was founded in July 2013. In 2014 for instance, they experienced triple-digit growth, in 2017 they have 1.2 million members and have seen a retail increase of 644 percent in the past year. They also have a data-driven approach to business, which updates them on customer response on social media, the quantity of products required and also matches the customer with the perfect outfit. The data system allows Fabletics to go from design to production within eight weeks. Fabletic has a goal of ensuring that consumers get fashionable activewear for non-designer prices and hence make fitness accessible to all.