Kate Hudson’s Fabletics is a mainly subscription active wear company that has grown to a worth of $250 million in just three years, and they are not afraid of Amazon. Along with the online method of purchasing, the company has opened sixteen physical, retail locations and are expected to open more within the following years.
Kate Hudson’s Fabletics uses a technique called reverse showrooming to sell and popularize its brand. Reverse showrooming is a take on showrooming, which is when customers browse products in store and then purchase them online at a cheaper price. With Fabletics, they don’t mind if you make your purchase in store or online. In fact, an item goes in a customer’s online shopping cart when they try it on so they can make their decision and purchase at their convenience.
Brand loyalty is key with Fabletics; when someone walks through the door of a retail store they are thirty to forty percent likely to already be a Fabletics member. If they are not, there is a twenty five percent chance they will become one during that visit. Also, by utilizing online data, retail stores can better determine which products to physically stock to appeal to their customers in the area. Store stock is even determined in relation to current and expected weather trends and predicted temperatures! Fabletics utilizes a Lifestyle Quiz as well that helps clients find the best gear by Fabletics to suit them and their routine. You can take it for free at their website.
Kate Hudson was able to create and build Fabletics with no business experience beforehand. The Almost Famous Actress is very involved with the company and has a hands on approach with her team. She knows the product because she uses them herself and despite some problems at first, the company goal is still to have the best quality product for around half of the price. Their first inventory order was not of the quality they expected and demanded so they had to set back the company’s launch by six months to allow for the quality they wanted.
Kate Hudson will always be an actress before a businesswoman. While she has had much success with Fabletics, her heart is in her acting.