When movie star Kate Hudson launched her athletic apparel brand Fabletics in 2013, it seemed to many like just another Hollywood celebrity putting her name on a product. However, the company is currently worth over $250 million and Hudson has established herself as a fierce entrepreneur who is unafraid to take risks.
When customers visit the Fabletics website, they can choose from hundreds of athletic apparel items. The brand is known for its large variety of sports bras and leggings that come in different styles, colors and patterns. Additionally, the store carries jersey dresses, jackets and gym bags that have high-fashion appeal.
What makes Fabletics unique is that it operates as a subscription service as well. Customers who shop on the company’s website are encouraged to join the VIP membership program. Then, at the beginning of every month, they are sent a complete workout outfit in the mail for a monthly fee of $49.95.
When Joanie and Heather of thekrazycouponlady.com received their first outfits in the mail, they were thrilled to see that Fabletics selected outfits that perfectly reflected their personal styles. They also noted that Fabletics clothing is comfortable and built to endure intense workout sessions.
When Hudson launched a handful of physical Fabletics stores across the country a couple of years back, she did so using the “reverse showroom” strategy. Instead of relying on physical stores to earn additional revenue, she uses these stores to bring more sales to the website. About 30 to 50 percent of customers who walk into a Fabletics store are already VIP members who want to try on pieces in person. Approximately 25 percent of customers who purchase an item in a store end up becoming VIP members before they leave. When a customer tries on an item in the dressing room, that item is added to their online Fabletics shopping cart.
The strategy is paying off. Fabletics continues to grow tremendously each year. Hudson is planning to launch several more Fabletics stores across the United States and overseas over the next five or so years. The company is doing so well that Fabletics is selling more than Amazon’s fashion apparel outlet. It’s obvious that Kate Hudson is an entrepreneur at heart.