Valued at over $250 million, actress Kate Hudson’s athletic apparel brand Fabletics has managed to outsell Amazon in the workout gear department thanks to highly creative strategies and quality products. Hudson, who has continued to act as CEO of the brand since its launch in 2013, has recently unveiled her unique take on physical stores, inspiring online business owners worldwide.
The Fabletics Brand
Hudson launched the brand after establishing herself on social media as a fitness guru. With millions of Instagram followers, Hudson has used the platform to focus less on her acting career and more on her workout routines and wellness tips. Having earned the respect of fitness enthusiasts around the world, she launched her own brand of athletic apparel in the form of an online business.
The Fabletics business model was innovative from the start. The website functions as every other online retail business, allowing customers to add pieces to an online shopping cart and check out. The addition of the subscription service model, however, is what set Fabletics apart from the rest early on.
Fabletics customers are heavily encouraged to join the VIP membership program. Offering an incredible value, this program is hard to resist. First, customers sign up and fill out a lifestyle quiz, giving Fabletics an idea of what types of workout clothes the customer likes best. Then, for a monthly fee of $49.95, the customer receives a full workout outfit in the mail each month.
When Teri Hutcheon from afoodiestaysfit.com became a VIP member, she was excited to take a step back and let Fabletics select an outfit for her based on the answers she provided in her lifestyle quiz. She was also enticed by the special deal that gives new subscribers their first outfit for only $24.95.
Teri knew she had made the right decision by signing up when her first outfit arrived in the mail. Observing the quality of Fabletics clothing, Teri noticed that the clothes are made of superior materials. Even after several washes, Fabletics clothing continues to hold up and withstand tough workouts.
In response to the enormous success of the Fabletics brand, Hudson decided to open up a small handful of physical stores nationwide. Instead of viewing these stores as an additional source of revenue, Hudson uses them as a way to get more VIP members online. Customers who have visited the Fabletics website can visit a store and try on pieces that they like before committing to the VIP membership program. Once they see for themselves that Fabletics clothing is made of high-quality materials and offers a superior fit, they’re hooked. About one quarter of customers who visit a Fabletics store walk out as VIP members.
This strategy of drawing customers to the online store is known as the reverse showroom technique. In an age when physical stores are losing out to online companies like Amazon, Hudson has managed to redefine the purpose of brick-and-mortar retail.
It’s safe to say that Hudson knows what she’s doing. The company continues to grow and Hudson plans to launch more stores around the world in the coming years. If you’re a fan of Hudson’s unique approach to athletic gear, visit the Fabletics website and fill out the lifestyle quiz.