It’s been an incredible four years for high-profile movie star Kate Hudson, who has successfully reinvented herself as an entrepreneur for a new generation. The famous blonde launched her athletic apparel brand Fabletics in 2013. In just four years, she has managed to dominate the athletic apparel industry, reaching such high levels of success that she has already opened several brick-and-mortar stores across the country.
Fabletics started out as an exclusively online retail website, providing customers with an enormous variety of fitness clothing. The brand is known for its wide selection of sports bras and leggings, two fitness apparel staples that can be found on Hudson herself on her Instagram page. In addition to traditional fitness wear, the brand sells comfy jersey dresses made with sweat-resistant fabrics, soft and comfy pullover sweaters for lazy weekends and gym bags that look so luxurious that they can be the perfect accessory for a dinner date outfit.
What makes Fabletics unique is its subscription service model. Customers can purchase Fabletics items directly on the store but they have the option to sign up as VIP members. This membership program will ship a complete workout outfit straight to the customer’s door each month for a monthly fee of $49.95. Shipping is included.
In order for Fabletics to select an outfit for the subscriber, they provide the subscriber with a questionnaire regarding their fashion tastes and workout preferences.
Teri Hutcheon of afoodiestaysfit.com couldn’t resist becoming a VIP member. As a woman who works out frequently, she loved the idea of getting new workout clothes in the mail each month without having to browse through different items for hours. When she received her first order in the mail, she was thrilled to discover that Fabletics clothes are built to last. The fabrics hold up after several intense workouts and the colors don’t fade in the wash.
Fabletics has earned enormous financial success because of this method. Thanks to high revenue in its first couple years, Hudson decided to launch several physical stores throughout the country, implementing the reverse showroom technique into her business strategy.
This technique uses physical showrooms to encourage customers to purchase clothes through the Fabletics website. Because of the enormous rise of online retail over the last few years, this strategy was created to be a new approach that only makes a brand’s online presence stronger.
The company uses location-based data to stock each store. If certain types of items are selling more in one region of the country, that store will be stocked with those types of items.
The website is also deeply integrated into the way that these physical stores are run. Customers are encouraged to sign up for the VIP program after they get to see and touch Fabletics clothes in person. This “reverse showroom” technique has earned the company 25% more in online revenue since Fabletics brick-and-mortar stores were first launched.
Thanks to Hudson’s innovative business strategies, the company continues to grow. Over the next five or so years, Fabletics will be opening several more stores around the world.