Kate Hudson is an accomplished actress that has taken the world by surprise when she co-founded Fabletics. Fabletic sells athleisure apparel for all shapes and sizes. The sizes offered start at XXS all the way to 3X. Fabletics is affordable and that is one of the reasons why people like it. Fabletics has been going for three years now and is worth over $250 million. They use a different approach than most. It is subscription based and this is how they get more intimate with the consumers. This subscription gives them insight on what the consumer likes and is looking for. There are many companies out there trying to bank on the athleisure apparel but Fabletics has found success by running their company by three rules.
The three rules are reverse showrooming, collecting data, and relying on growth. Reverse showrooming has been nice to Fabletics because it is working in their favor. Online browsing and shopping is no longer seen negatively and is done in a positive light. The premise is that nearly 50% of the consumers that go inside the Fabletics physical store are already members. Whatever they try on goes right into their virtual shopping cart. They can either purchase the item in store or online. Then there is 25% of the consumers that become members before they leave the store.
Online data is a key source of trends since they are always changing. The physical stores stay stocked with what is trending based on the data and the online store is treated the same way. If stores don’t keep up with the demands and wants of society, then they begin to fail. Fabletics don’t rely on the data to make the company successful, it is just a stepping stone in a lucrative business.
Growth is one item a company looks for. Without growth, then a business can’t survive. With Fabletics using all three of these rules, it has worked for them thus far. The company anticipates at least a 35% increase yearly. This is pushing Fabletics on up in the ranks because the brand is so popular. They are no match for Amazon and the figures are showing it.
Kate was asked what makes a business successful and she named 5 tips. Identify marketing opportunities. This allows for the company to see the bigger picture. Most athletic wear is expensive, but Fabletics lowered the prices so it is still seen as high end but at an affordable price. Staying hands on with sales is imperative. Be in the know on what is working and what isn’t. Replace what isn’t working with something that will. Also relying on data aids the company in price ranges and what consumers want to see. During the sign up to their subscription services, a short quiz is given just for that reason. A company can’t succeed if the management isn’t inspired. Inspiration is what fuels the drive and without that, then it creates a problem. Lastly, believe in yourself and don’t be afraid to take a risk. Without risk taking, no one would be where they are today.