Kate Hudson and Fabletics Taking on the Amazon Model

For many consumer markets it would seem that there’s no competing with the online giant that is Amazon. This is especially true for the fashion industry, 20% of which is controlled by Amazon. Kate Hudson’s Fabletics has challenged this with a subscription business model that pushes aspirational messaging to get customers to flock to their products. The results: a $250 million business in under three years.

 

The focus on service over pricing as been instrumental in Fabletics’s growth in such a short time. With an a focus on brand recognition, availability, and gamification, customers are given modern accommodations to the shopping experience that increases their satisfaction. This leads to repeat business and, over time, customer loyalty. This is made possible even as customers are engaging less and less with physical stores in preference of online shopping, and there are plans to expands to sixteen locations across the U.S.

 

According to General Manager Gregg Throgmartin, all this comes together because of a personalized approach to the subscription model, making sure customers get more of what they actually want rather than just selecting the best of what’s available. And that is presented to customers in how Fabletics handles the challenges presented by the traditional showroom experience.

 

Most physical stores lose out to marketplaces like Amazon because customers will o to showrooms, see what they like, then hunt online for lower prices. Fabletics relies on “reverse showrooming,” allowing them to build a relationship with local markets through events that gamify the shopping experience. Members that shop in physical stores have their purchases and interests tracked on their online accounts, making the act of going out to shop yet another service Fabletics provides. This provides a great deal of data that helps different locations stock only what’s in demand by customers and members in the area based on their shopping habits and social media ranking.

 

So far Fabletics has retained a 35% growth rate per year, which indicates that they have an understanding of what to stock where. But this doesn’t get promoted as far as it has without a message that connects with their target audience that makes use of the data they’ve collected thus far. This requires a team that’s well versed in the nuances in customer habits, making their distribution smart while also providing incentive to customers to return. For this, it helps to have a celebrity face like Kate Hudson, who not only oversees Fabletics but is also active with members on social media in promoting the company’s products, making the Fabletics experience a dynamic one.

 

About Fabletics:

 

Fabletics is a fashion subscription service and retailer focused on activewear. It was founded by actress Kate Hudson in 2013 along with business partners Adam Goldenberg and Don Ressler.

 

Fabletics makes brand name activewear to subscribers with an inspirational message to remain active. With an aggressive focus on social media, Fabletics focuses on providing only what their customers are interested in so they can remain focused on pursuing their individual passions.