Why Kate Hudson’s Fabletics Is Planning To Take On Amazon

Making it big in fashion when Amazon controls 20 percent of the fashion e-commerce market is a pipe dream. However, Kate Hudson has beaten the odds by growing her fashion brand, Fabletics, to $250 million worth of assets in just three years. Fabletics operates on a simple yet very effective mechanism of subscription to sell their products. Kate is well versed with the fashion market. She understands that a combination membership, convenience, and understanding that clients like brands that aspire them are key to successful entrepreneurship in the fashion industry.

Traditionally, massive price tags and quality of goods and services have defined high value brands. However, change in the economy has disregarded the combination of these factors as a means of guaranteed success and a platform to survive competition. Modern consumers are instead looking for factors like brand recognition, customer experience, gamification elements and exclusive design as determiners of high value brands.

Just like Apple and Warby Parker, Fabletics is using the strategy of physical positioning to create success in the company. The fashion membership brand has sixteen physical stores in Florida, Hawaii, California and Illinois and intends to add more as time moves on. According to the general manager of Fabletics, Gregg Throgmartin, their company has been redefining the face of high-value brand since its inception. Through their membership strategy, the company is able to offer unique customized services and trendy fashion products at lower prices, unlike their rivals whose prices are hefty. Gregg said that it is easier to satisfy customers when you understand their specific needs.

Why Fabletics’ physical stores stand out

Historically, fashion brands experience a problem of showrooming where people browse offline but end up getting the same products at relatively lower prices from other stores. Fabletics has survived this strategy by creating good customer relations through membership. Most of the brand’s customers that visit their stores are members while few others get the membership while at the stores. Fabletics uses the retail strategy of showing the right content both physically and digitally. They stock their stores according to their membership preferences in order to suit the needs of both local members and social media. Lastly, focusing on accessibility, people and culture has helped Fabletics to balance their operations based on lifestyle, customer experience and consumer education. Fabletics has mastered the art of smart distribution, innovative membership programs and fast purchase options to satisfy the needs of a modern consumer. Physical retail experience and unique showrooming has played a lead role in the success of Fabletics.

About Fabletics

Kate Hudson and co-CEOs of JustFab, Inc. Adam Goldenberg and Don Ressler, established Fabletics in 2003. Kate Hudson is a fashion expert and a mother of two. She is passionate about inspiring others. The three were motivated by the need to offer more stylish and high quality gear at affordable prices after realizing that none of the present luxury brands offered competitive activewear. Fabletics has experienced growth over the years and has expanded their services to Canada, Australia, Spain and Netherlands. In 2015, Fabletics launched a men’s line.

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