How Kate Hudson Made Fabletics A $250 Million Business In Three Years?


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Fabletics By Kate Hudson

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You must have known and heard about Kate Hudson, a talented actress with many famous movies and a Golden Globe at her credit. But did you know that her business instincts are equally sharp? So much so that her business, the Fabletics commands a sizeable share in the fashion e-commerce industry. The brand is getting popular and has reached $250 million in three years. Fabletics is fast becoming a recognized brand in the market and is sitting comfortably with industry giants like Amazon. Though not challenging its bigger rival by any means, it is surely making its presence felt, and it shows. Here is more on how Kate Hudson turned her brand into a $250 million success in just three years:

How Fabletics Works?

At its core, the brand promotes the activewear movement and works on a subscription mechanic for selling clothes to customers. The Fabletics business model is based on the premise that clients like to buy motivated brands, as this help push the wearer. Moreover, the cloth has two traits that make it more attractive to customer – convenience and membership. These characters turn Fabletics into a powerful brand, the one that attracts many customers due to its quality and affordability.

Traditionally, brands having a higher price and better quality have been doing well in the market. However, the ever-changing economics means that these traits alone will not ensure guaranteed success for the brand. Today, things like customer experience, gamification, design exclusivity and recognition of brand are detriments that bring more value to a clothing brand. It seems as if Kate Hudson long observed the market and came up with a proper marketing strategy but customer preference is just one aspect of this strategy.

A Fitness Movement That Worked

According to a report, the CMO at Fabletics, Shawn Gold, is implementing a hybrid selling strategy. She is working on tried and tested sales model to run online sales. In this model, online sale outlets will have people and fitness-oriented products in them. Two of the most valuable retailers, Warby and Apple, tried a similar strategy to sell products. The report suggests that owing to its success; more companies will follow the policy soon. The company has 14 active online stores, and more are to come. Gold believes that online stores show a great potential and are likely to help the company capture more market share this way.

Gregg Throgmartin, the general manager at Fabletics, believes that Fabletics is doing what many other e-commerce businesses failed to do from day one. It works like this; the membership model gives customers a very personalized way of fashion. Secondly, they sell at about half the price of their competitors. Both initiatives are attractive to customers. Fabletics believe that selling becomes easier when you know your customers and are aware of their likes and dislikes.

Online Physical Stores with a Twist

Hudson and her executives saw how the market functions and why more sellers are not selling as well as they like. They saw the need to have physical stores as well as online selling; the strategy worked wonders for Fabletics. It was simple effective and proved to its worth in just two years. Usually, sellers display products at showrooms where people browse offline and buy these from difference stores at lower prices instead. Fabletics changed the model and tried turning the negatives into positives. Another difference was that Fabletics didn’t endorse the pop-up selling method. Instead, they went for building relationships to get to know more about local markets. This led to a situation where most customers were already existing members.

Meaningful Relationships with Customers

Shawn Gold believes that not all customers are comfortable ordering online due to theft and scams. The strategy is to open the next 24 stores in areas where there is a high brand awareness among customers. For this purpose, the retailer has compiled data about the likes and disliked on customers in that region. Each store will have products lined up on the racks that customers find appealing. Similarly, the number of unpopular merchandise will be sold at deep discounts, and just small inventory will be maintained. Customer feedback will help the retailer to increase or decrease a particular type of clothing. Moreover, if an in-demand product is sold out, the employees can add the product to subscriber’s online shopping cart through software. Hence, the product will be made available and delivered subsequently.  One great way to differentiate your brand from all the others and establish a meaningful relationships with customers is to use the technology and build Android and iOS apps quickly without writing a single line of code.

Increasing Sales through Promotions and Discounts

Fabletics is one of the many brands that uses online promotion schemes and coupons for selling sportswear. As such, you will find many of their products being sold at deep discounts. With this concentrated Customer oriented strategy for sitewide promotion on Fabletics gives get up to 65% discount on select items check this website for their exclusive coupons: ClothingRIC; where can easily find the range of discounts from $10 off to refer a friend to 50% on outfit collection.  That’s not all; you can get up to 20% discount on March 2017 collection, get two leggings at just $24 and get your VIP membership card. Also, promotion and discounts on clearance sale are also available. These what makes a visitor into your perfect targeted customer.

Physical Plus Online, Will It Work?

Shawn Gold believes that the formula of having physical store plus online selling is working already. Customers living nearby a Fabletics retail store are twice as much likely to order than those who live far from a store. The situation is working well for the company where customers are reporting a higher satisfaction level. Surprisingly, half of Fabletics customers had never ordered online before visiting a retail store. Naturally, the situation has urged the company to open more retail stores across the country. In the next few years, Fabletics plan to give around 80% US population a store within a convenient drive distance.

The idea is not only to have a physical store at reachable distances but also to employ innovative business strategies too. The business strategy used by Kate Hudson and her team for turning Fabletics into a $250 million company have so far worked tremendously well. After all, making the likes of Amazon feel the pressure of losing sales to a three-year-old brand is by no means a small feat.

Hassan Mansoor
Hassan Mansoor is the Founder and Director at Technical Minds Web. After completing Masters in Business Administration, he established a small digital marketing agency with the primary focus to help the small business owners to grow their online businesses. Being a small entrepreneur, he has learned from project management, and day to day staff management and staff productivity. He's a regular contributor on


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