Fabletics – Taking on Amazon

Kate Hudson’s Fabletics has grown to the tune on two hundred and fifty million dollars in only three years. This in no small achievement given Amazon controls nearly twenty percent on the fashion market. Unlike other companies Fabletics uses a subscription model to sell its product were customer experience, brand recognition and design are the companies focus for the modern customer. The Fabletics membership model seems to be paying off, opening a number of locations in Hawaii, Illinois, Florida and California.


Fabletics has embraced reverse showrooming. Because of the membership model the company the company has turned a negative for its counterparts into a positive. With thirty to fifty percent of those that walk through the doors are already members and an additional twenty five percent become members in store. Data is also an important part of the companies success. Collecting local data on preference helps the company keep in stock items that appeal to its customers. The brand is based on fashion trends and preference data to determine satisfaction of the companies customers. With a growth rate of thirty five percent a year, growth is a factor in providing top quality products at great prices. The embrace of the new type of showrooming and customer experiences as well as scaling there ROI based Media is helping the company with its fast growth and allowing it to compete with Amazon.


Since the founding of Fabletics in twenty thirteen, the brand has been one based on empowerment. When TechStyle Fashion Group, Don Ressler and Adam Goldenberg needed a partner for there new athletic fashion brand Kate Hudson was the first person they thought of. A woman that is both approachable, humble, and with a very active lifestyle. It was just a perfect fit from the beginning. Kate was hands-on from the beginning whether reviewing budgets or social media strategies. Kate is very much one of the few celebrities that uses the products she endorses. She could never be anything but authentic.


The company did have a few hurdles along the way, such as some unexpected inventory delays. There was also some unwanted celebrity criticism from other celebrities such as Cher. Kate didn’t let anything get to her. She spearheaded the new customer service department and data system to insure proper inventory. Within eighteen months the company had a great rating on the Better Business Bureau and improved customer satisfaction score. With all this business success, you would think she would give up acting, but she says she is an actress and artist though and through.