In 2013, the idea of Fabletics was born. The idea was launched by Don Ressler and Adam Goldenberg, with the help of Kate Hudson, when they noticed that the activewear marketplace was missing something. They saw that there were plenty of expensive, luxury brands, but no brands that offered high quality apparel at a price that most people could afford. Kate Hudson is the face of the brand. Each month, she shares her favorite outfits and the entire line is approved by Kate. Her passion is to get women inspired to be active and live a healthy lifestyle. The clothes offered are always high quality, trendy, and at prices people can feel good about.
The fashion industry is highly competitive. Amazon currently controls about twenty percent of the market, but Fablectics has still been able to grow into a two hundred and fifty million dollar business in just three years. They found a niche business that was meeting a great need in the apparel industry. To sell their clothing, Fablectics works on a subscription model. Their customers take a quiz and tailor their likes and dislikes in clothing. They then pay a low subscription fee to get outfits delivered to them every month. The convenience of the delivery every month and membership is a powerful combination for strong sales and repeat customers. The membership model allows the company to offer personalized service to each customer and offer them trendy outfits at a fraction of the price of their competitors.
The company recently has started to branch out from their subscription model and have opened more physical stores all over the United States. They have been successful in what is being called “reverse showroom.” Many brick and mortar traditional retailers are losing sales when people browse their stores, but then find the items cheaper elsewhere using smartphones and online. Fablectics has been able to reverse this model. With their new stores, they have made them simply an easier way to serve their customers. Their stores allow them to know and build relationships in the community and learn about local markets through various events and activities. Using online data, they are able to stock items that they believe their local customers will like. They are able to change their apparel as tastes and trends change in each community that they serve.
Thirty to fifty percent of people that come into a physical Fabletics store are already members. They are then successful in signing up another twenty five percent to be members while they are in store. While a member is shopping in the store and they try on clothing, the item goes into their online shopping cart. This way the customer can remember and see what they have tried and decide what they liked and what hey didn’t. For Fabletics, it does not matter if their customers buy in the store or online. They have simply made their physical stores another element if service for their members.