Athleisure wear is hot on the markets today. Many companies are jumping on board, trying to cash in. Kate Hudson is the co-founder of Fabletics and became inspired by her career driven mother, Goldie Hawn and her hand in the Hawn Foundation. Fabletics entered the scene in 2013 and is proving to be a big competitor against the powerhouse activewear brands. It is apart of the Techstyle Fashion Group enterprise. There are many speculations when it comes to their VIP monthly membership but the numbers are proving that the monthly membership isn’t a problem. For $49, consumers get bottoms, a sports bra, and a top based on their preferences. This personalizes their service and it comes at a fraction of the competitor’s price.
Fabletics have an online store and 18 physical stores. Their success has come quickly with their revenue reaching $250 million. In the year 2016, their sales increased to 43%. But many wonder how Fabletics has come on to the scene and is doing so well. High end products aren’t defined liked they use to be. To be considered high end, the quality of the product had to be impeccable and the price of the product was on the higher end. But now, high end is defined by excellent customer experience, popularity of the brand, and exclusive designs specific to the company.
The strategy Fabletics uses is comparable to Apple and Warby Parker. And it is paying off for them so far. The subscription service is the start of the relationship with the consumer. It is during that time that the company gets familiar with the consumer and finds out what kind of products interest the consumer and the lifestyle the consumer has. Fabletics caters to all shapes and sizes because they wanted their products available to everyone. As the company is constantly competing with other companies, they still seem to come out on top because of how they do business.
Fabletics uses reverse showrooming, input from data, and the growth of the consumers and their cultures to strategically and successfully run their business. Those that shop in the physical stores are already members and those that are not members, leave as members before their shopping experience is over with. Data helps them stay on top of the trends and keeps them in the know on what is trending with the consumers. This lets them know what is working in the showrooms physically and online.