Fabletics has grown to be a $250 million dollar company in just three years. It has been successful because of its subscription structure that sells clothing to its customers. The mixture of a great brand, convenience, and membership has proven to be a winning combination for Fabletics.
It used to be that brands with high value were defined by the quality and service of its goods, but this has changed over the last few years. Now customers want brand recognition, a good customer experience, and design and gamification. This is what the modern consumer sees as high-value.
Fabletics is not much unlike Apple and Warby Parker and their Fabletics plans to expand its physical stores to sixteen more in Florida, California, Illinois, and Hawaii.
Gregg Throgmartin, General Manager of Fabletics, believes that building a modern “high-value” brand from day one is the secret of success for Fabletics. The membership model of Fabletics allows the company to give personalized service and trendy fashion at a fraction of the cost that competitors are charging. He believe it’s easier to satisfy the customer when your know what they want.
Fabletics encourages reverse showrooming and has avoided the pop-up store strategy. Instead, Fabletics has built relationships and gotten to know the local markets through various events and activities. This has resulted in 30-50% of customers that walk in the doors of their physical stores to be members and 25% percent become members in-store.
Kate Hudson has used a few strategies in order to grow Fabletics successfully. First off, it has proven useful to identify marketing opportunities. Hudson has captured a market space that competitors have overlooked. Hudson has also stayed very hands-on, looking at the sales numbers for each week and keeping an eye on what sells and what doesn’t.
She also relies on data in order to make decisions. When new members sign up to become members of Fabletics, they have to take a quick lifestyle Quiz. The data collected form the quiz helps to create products that the customer will want and buy and it helps Fabletics to hear what the customers are saying.
Hudson draws inspiration form her mother, Goldie Hawn, and is a member of the Hawn Foundation, which helps to teach kids mindfulness. She also feels it is important to not only believe in yourself, but to also take risks. Hudson believes it is important to live your passion.