Trying to make a place for themselves in the ecommerce fashion industry, Fabletics has fierce competition with Amazon controlling 20% of the market. Kate Hudson’s Fabletics, a brand under the Tech Style Fashion Group, is a fast growing trendy athletic fashion line that has become a 250 million dollar business in just three years. The brand uses the Just Fab membership model to sell clothing to its customers and due to their success will open stores across the country. They have 16 stores in states like Illinois, Hawaii, Florida, and California. A shift in the wallets of customers has made expensive, designer activewear no longer a profitable market.
Fabletics attributes their success to trendy fashion, personalized services, and subscription services. Consumers know what they want and how much they can afford, which is what makes this business so profitable. Fabletics have made their profit from online stores, so there brick and mortar stores capitalize on the reverse showroom model. Customers browse through the clothing online and then walk through the doors already knowing what they want. 30% of people walking through the doors are already members. 25% of the customers who walk through the doors will become members. Physical stores will use local data from their online members to know what to stock the shelves with, so they can meet the tastes and needs of their members.
High value brands and clothing lines used to be defined by quality and price but they are now defined by brand recognition, creative and superior quality, and customer service have become more important. Gregg Throgmartin, General Manager of Fabletics, believes the membership model that allows the company to give clients trendy clothing at affordable prices with the convenience of being delivered has made them able to transition to physical stores. The online and physical stores are tied. An instore customer’s shopping cart goes into their online shopping cart if they are a member. Fabletics does not care where they buy the clothing.
A celeb known for her active lifestyle, Kate Hudson wanted to design a line of active wear that inspired. Under the Tech Style Fashion Group, Fabletics sells their line of trendy, affordable clothing for their everyday active person. With a line for women, children, and men, they are sure to have clothing to fit your needs. Fabletics has found success in the active wear industry through the direct to customer subscription model.