It’s been an incredible four years for Kate Hudson. The famous movie star launched Fabletics, her athletic apparel brand, in 2013 and has watched the business grow to unbelievable success. Today, the company manages to outsell Amazon’s athletic apparel department which is no easy feat.
It all started when Hudson noticed a growing trend in the fashion world. “Athleisure,” which refers to the incorporation of athletic apparel into everyday wear, was becoming all the rage. Hudson, a self-proclaimed workout fanatic with millions of Instagram followers, came up with the idea of launching a workout apparel company that existed exclusively online.
She set up the e-commerce website based on the subscription service model. Customers can visit the website and browse through hundreds of sports bras, leggings and other clothing items or they can sign up to become VIP members. Upon joining the VIP membership, customers are asked a series of questions relating to their fashion tastes as well as their favorite types of workouts. Then, each month, Fabletics selects a complete workout outfit for them and sends it to their door for only $49.95 per month. Shipping is free and VIP members can opt out at anytime.
This convenient way of shopping combined with Fabletics’ stylish and high-quality clothes have earned the company an enviable reputation. VIP members like Heather and Joanie from The Krazy Coupon Lady and Teri Hutcehon from afoodiestaysfit.com are glad that they decided to join the membership program. Upon receiving their first outfits, they were pleased to discover that Fabletics items are made with quality fabrics. Plus, Fabletics did an excellent job selecting outfits that fit their own unique styles.
Thanks to the success of this subscription service model, Hudson was able to invest in several brick-and-mortar stores across the country. These physical Fabletics stores exist as reverse showrooms, a concept launched by Apple. Customers can try on the Fabletics clothes in the store and then sign up to become VIP members online. When customers try on an item, that item is added to their online shopping cart. According to Fabletics data, 25 percent of customers who purchase an item in a physical Fabletics store end up becoming VIP members.
This strategy has proven to be successful. Currently, Hudson is planning to launch another handful of physical Fabletics stores across the world. It’s safe to say that Hudson has found her true calling in life as a bold and fearless entrepreneur.