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Kate Hudson and Fabletics Take Amazon On

Fabletics is a new fashion brand that is taking the online business world by storm. It has already grown swiftly to $250 million in revenue in its short life. And this is in an industry (retail) that is considered dead. Not to mention that the “athleisure” genre, which Fabletics touts themselves as, has historically been deemed overpriced, ugly, and made of low quality materials. However, Fabletics is different.

 

When the founders Don Ressler and Adam Goldberg decided to get into fashion, they knew they had to work smart. Amazon is already the giant in the space, and they dominate from a logistics, marketing, distribution, and pricing aspect. They decided they needed someone to partner with who could help them navigate the brand, so they looked to Kate Hudson.

 

Kate Hudson is an actor, but she also has a knack for business. After all, she was present in the early meetings of the brand, and helped them with design, sales, and social media decisions early on. She even took to social media to address criticism. Thanks to her insights, the company has since improved customer service and their inventory technology.

 

Speaking of technology, it is one of the primary ways in which the brand has experienced so much success (triple digits and double digits in growth every year). Boasting over 1.2 million customers to date, Fabletics has taken the old model of physical department stores and flipped the “showroom” model on its head. Instead of customers walking in, looking around, and walking out without purchasing (only to go online and get it cheaper from somewhere else), they do the opposite at Fabletics.

 

There a couple of reasons for this. First, the company decided early on they would use the power of data. They focused on their online presence with social media, marketing, great images, and proper clothing design to build interest and customer loyalty. Secondly, because they work through a membership program, their customer adherence is also higher. Therefore, when enough customers reside in a certain geographical location based on their collected data, Fabletics opens up a retail store there and specifically puts inventory that is popular with those customers. The result is that the customer is coming into the store with knowledge of what to expect and an intent to buy already. In an age where major retailers are going out of business and closing down stores every day, it appears Fabletics is onto something.

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