Fabletics: Taking On Amazon For Lead In The Fashion Industry

The fashion industry is hard enough to break into when Amazon has current control of 20% of the industry’s ecommerce market. Those statistics make Fabletics’ success in the industry even more astounding. In just three short years, Kate Hudson’s Fabletics has grown into a $250 million business.

Fabletics has zeroed in on the ‘activewear’ movement, using a subscription service to sell clothing to its members. The idea behind Fabletics is easy enough, providing customers with fashion brands that are ambitious while giving them an added convenient membership. This has become an easy, but powerful combination for Fabletics.

Historically speaking, brands that hold high value were typically defined by their prices and quality of the goods they were selling. In recent years however, a shifting in economics has meant that these factors were no longer a guarantee to the brand’s success. Now, factors like exclusive design, brand recognition, last-mile service, and customer experience are becoming more and more important to consumers.

Fabletics’ strategy is paying off, allowing them to open more and more physical stores in addition to the sixteen they have already opened. According to Gregg Throgmartin, General Manager of Fabletics, the company has reimagined consumers’ ideas of a high-value brand. Their membership model allows the company to offer a very personalized service to their members while providing them with trendy fashion at an affordable price.

In true Fabletics fashion, the company even does their physical stores differently. Showrooming has been killing competitors, with shopping browsing offline but purchasing the items cheap somewhere else. Fabletics reversed that model because of their very unique start to the business. The company has turned browsing into a positive instead of a negative.

Their strategy allows them to build relationships with people before they even enter the doors of the physical store. Between 30-50 percent of people who walk in are already members, while an additional 25 percent become members before they leave the store. When a member comes in and tries clothes on, they are also added to their online shopping cart. Fabletics doesn’t pressure a customer to buy in-store versus online. They don’t care how they buy; their retail stores are just another element of their stupendous service.

Fabletics was founded by TechStyle Fashion Group founders Don Ressler and Adam Goldenberg, and also Kate Hudson. The company launched in October of 2013, finding immediate success with its online subscription model.

In 2015, the company launched its first men’s activewear line, named FL2. FL2 was created with Kate Hudson and her brother, Oliver Hudson. In the spring of 2016, Fabletics expanded even further by offering its members swimsuits and dresses.

Fabletics has increased by an average of 35 percent every year since its launch and is currently valued at an estimated $250 million. They use their physical stores to increase membership, stocking their shelves with apparel based on analyses of online trends in the local area. The company opened their very first stores in 2015 in locations like Cincinnati, New Jersey, St. Louis, and Woodland Hills.

Weekend #workout plan inspired by @gingerressler's high-power moves ????

A video posted by @fabletics on

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