When Kate Hudson launched her athletic apparel brand Fabletics four years ago, the athleisure trend was just starting to take over the world of fashion. Suddenly, women were stocking up on cute leggings and sports bras to wear outside of the gym. Hudson, a workout fanatic, opened up her own brand of workout clothes and has since watched her venture become a $150 million empire.
By offering stylish workout gear made with high quality materials at affordable prices, Hudson has managed to dominate the athletic apparel market. Plus, the Hollywood actress has demonstrated remarkable business sense with her clever tactics and fearless strategies.
How Fabletics Works
Fabletics is a retail website that’s stocked with literally hundreds of workout apparel items. These items range from high-performance sports bras to casual dresses made out of thin jersey knits. The enormous selection of athletic apparel items ensures that there’s something for everybody type and personal fashion taste.
Customers can shop on the Fabletics website like they do on every other retail website. However, the website also suggests that customers join the VIP membership program. Based on the subscription service business model that has taken the e-commerce world by storm, this membership program allows Fabletics customers to receive a brand new complete workout outfit in the mail each month for $49.95. Members can opt out whenever they wish and shipping is free. Plus, the first workout outfit is only half the price.
VIP members receive an outfit that is based on their personal style preferences. Fabletics gathers this information by requiring VIP members to fill out a lifestyle quiz upon signing up. This quiz contains questions about workout preferences and fashion tastes. Then, each month, Fabletics allows VIP members to select from a handful of outfits picked out for them. Once they pick out the outfit that they want, it’s mailed to their door within days.
The fun and convenience of this business model has earned the company numerous positive reviews. Fabletics VIP members await anxiously each month for a new outfit that they know will be stylish and will hold up through many vigorous exercises. Blogger Teri Hutcheon from afoodiestaysfit.com has been a loyal VIP member for a couple of years. When she received her very first Fabletics order, she was impressed by the quality of the materials used to make each piece. Once she tried the clothes on and saw how well they fit her body, she realized the value of the membership program.
Fabletics In Person
Hudson decided to open up a small number of Fabletics stores around the country in 2015. These stores operate as reverse showrooms, letting customers feel and try on the clothes in person so that they will join the membership program online. The website is heavily integrated into these brick-and-mortar stores. For example, when a customer brings a Fabletics item into a dressing room, it’s added to their online shopping cart.
So far, 25 percent of shoppers who enter a Fabletics store have become VIP members online. Due to the success of these stores, Hudson will be opening up several more over the next three to five years.
Check out the Fabletics website to fill out the lifestyle quiz and start receiving new workout gear each month!