Startups have always found it difficult to enter a market that is dominated by large enterprises. And so when Kate Hudson’s Fabletics emerged in 2013 to face off with Amazon and other e-commerce giants, many people doubted the company. Four years later, the company has over 16 physical stores in America, and it has ventured out to international markets. Since it was founded, Fabletics has grown by over 200% and its revenues this year are expected to be in excess of $235 million. The company reports that it has over one million paying members.
Fashion brands are increasingly becoming membership-based. According to Gregg Throgmartin, the membership model allows the company to customize its services to the specific needs of its member (s). Throgmartin, Fabletics’ President, affirms that Fabletics can offer activewear clothing to its members at a lower cost than its competitors. The company’s president believes that it is easier make customers happy when their identity, and what they want is revealed through membership.
One notable thing about Fabletics is its appetite to open new stores while its counterparts are moving away from the physical store concept. The trend is to close physical stores and operate vibrant online stores. Although Fabletics has an unbeatable online presence, the company believes in the power of physical stores, especially when approached innovatively. Over 90% of products found in any Fabletics’ physical stores have strategically been placed there. The company uses local online data, local member’s preferences, social media demands, store heat-mapping, and sale statistics to inform its stores stocking needs. The result is a physical store with items tailored for the local consumers.
Fabletics uses its physical stores to create beneficial relationships. If a person walks into a Fabletics store and he/she is not a member of Fabletics, the company is willing to enlist them in their membership list. According to the company’s statistics, over 50% of people who walk into a Fabletics store are already members while over 25% of non-members sign up as members.
The rise of Fabletics in the activewear industry is a demonstration that the market is always open for innovative brands. Fabletics is one of the many modern brands that are flexible, data-aware, and risk-positive with an in-depth understanding of the 21st Century consumer.
Fabletics is an activewear company with an interest to promote the athleisure trend. The company’s products are suitable for men and women who value an active lifestyle. To get the right Fabletics’ clothing, one simply needs to take the company’s “Lifestyle Quiz.”