Succeeding in the e-commerce fashion is not as easy as it sounds. There are companies in online fashion that have been in the industry for many years. Take for instance Amazon that controls twenty percent of the fashion e-commerce market. However, Kate Hudson’s Fabletics has proved to be a worthy competitor of Amazon. The thing she is doing is not an easy thing. She has grown Fabletics to become a business that is worth $250 million in a short period of three years. Part of the growth of the company is in the activewear business.
Fabletics has succeeded because it focuses on a different business approach. Fabletics makes use of subscription to sell clothing items to customers. The company’s business approach is simple and straightforward. Customers prefer brands that treat them personally and inspire them. The simple mix is enough to convince members to join its membership club and subscribe.
Brands that have succeeded in the past focuses on quality and price of their products and services. However, the coming of the internet changed everything. The internet changed economics by changing purchasing trends. Customers stick to companies that excel in customer experience, product design, and brand recognition. A company that adheres to this business model will always be a success. Fabletics has maintained this strategy and has experienced incredible success. Fabletics focuses on a subscription business model. However, Fabletics personalizes its subscription because you can skip months that you may not want to purchase anything. This marketing strategy is unique as company’s can skip a month without throwing money away.
Fabletics’ unique business module took the fashion industry by surprise. The firm started in 2013 by its founders; Adam Goldenberg, Don Ressler, and Kate Hudson. The three saw a gap in the activewear fashion space. Initially, people had a difficult in purchasing activewear that had a good quality and style. The company filled this market gap by producing activewear that was fashionable, comfortable and had a high quality.
In the first year of operation, Fabletics managed to open brands in other countries such as France, Germany, and the United Kingdom. The company has expanded its stores in the United States by opening brick and mortar stores. Fabletics has managed to reach millions of buyers and become a million dollar business. Fabletics made a massive business leap not seen in any other product in the industry.
Membership to Fabletics is free. However, VIP members have to subscribe to the company to receive special offers. One receives an email at the beginning of every month informing them of their subscription. One has until the fifth of every month to cancel their subscription. Members that decide to skip will not be charged the $49.95 monthly fee. Members that register with the company pay the monthly subscription fee. The signing up process allows members to give information about the fashion preference, body size, and lifestyle. Fabletics then offers outfits for members based on these preferences. Members that subscribe receive these personalized outfits at the start of every month.