How Kate Hudson’s Fabletics Is Challenging Online Retail Brands
Before 2013, no one had any idea that movie star Kate Hudson had several entrepreneurial tricks up her sleeve. However, in just four years, she has managed to create a fashion empire worth $250 million.
When Hudson launched Fabletics, her athletic apparel brand, she was trying to bring convenient new shopping methods to women looking for athletic apparel items that were both stylish and functional enough for intense workouts. She capitalized on the up-and-coming “athleisure” trend, which refers to the trend of women wearing athletic apparel items outside of the gym. Fabletics offers a large variety of workout staples like sports bras and leggings in addition to more everyday items like jersey dresses and comfortably casual sweaters.
What made Fabletics unique from the start, however, was its creative business model. Fabletics apparel items can be purchased directly off of the brand’s website, but customers are encouraged to sign up to become VIP members. VIP members have the convenience of paying a flat monthly fee to receive a new full workout outfit that is shipped to their door each month. By subscribing to become a VIP member, customers pay less money per item, making the subscription an irresistible value.
The instant success of Fabletics inspired Hudson to launch a handful of brick-and-mortar stores throughout the country. Instead of relying on these stores solely for additional revenue, she introduced them as “reverse showrooms.” The “reverse showroom” strategy has been made famous by Apple. Customers visit physical stores to try out items they will later purchase online.
Although many fashion brands have closed their physical stores in order to focus on online revenue, Hudson saw an opportunity. By opening physical stores, customers can come in and try on pieces that they may have been undecided about while shopping online. When customers try an item on in the store, that item is added to their online shopping cart on the Fabletics website.
Additionally, customers are encouraged to sign up to become VIP members while they are in a Fabletics store. According to the company’s data, 25% of customers who have walked through Fabletics store doors have signed up to become VIP members.
Needless to say, Hudson’s strategy has paid off. The company continues to increase its sales each year. Hudson plans to open several more stores both in the United States and overseas over the next five years.
Hudson knows how to get people interested in her brand and she knows how to keep customers happy as well. Fabletics items have been praised by reviewers for their superior fit and quality. Women also turn to Fabletics to find athletic gear in their size as the company offers a wider range of sizes than most athletic apparel companies.
Kate Hudson has gone from a movie beauty queen to an entrepreneur with an undeniable understanding of business strategies. She currently has millions of Instagram followers who see her as a fitness expert and wellness guru. Her unique, down-to-earth persona has only added to her brand’s appeal.
With such impressive innovations and business strategies, Hudson’s company certainly has a bright future ahead.