When Hollywood actress Kate Hudson announced in 2013 that she was launching an athletic apparel brand, few could predict that her company would soon have an enormous influence over the fashion industry as a whole. With an endless amount of innovative tricks up her sleeve, Hudson continues to set the trends for the world of online retail.
Having had spent the last several years enjoying her reputation as a fitness guru on social media, it was only natural that Hudson would eventually launch her own brand of cute workout gear. Fabletics, launched as a retail website in 2013, sells extremely stylish yet affordable athletic apparel items like sports bras, jogging pants, running jackets and gym bags that double as luxury handbags. The clothes are also known for being high in quality and being able to maintain functionality after several extreme workouts and trips to the washing machine.
Fabletics operates as a retail website, allowing workout enthusiasts to browse through each item and add the ones that they want to an online shopping cart before checking out. What makes Fabletics unique, however, is its subscription service option known as the VIP membership program. Those who sign up to become VIP members can sit back while Fabletics selects an outfit for them each month based on a lifestyle quiz that they fill out upon subscribing. This outfit is sent to their door each month for a fee of $49.95. As an added bonus, a VIP member’s first outfit is only half the price.
Workout enthusiast Teri Hutcheon from afoodiestaysfit.com couldn’t resist the tremendous value of the VIP membership program. While many popular athletic apparel companies charge $50 for a sports bra, Fabletics charges about the same amount for a complete exercise outfit. When Teri received her first Fabletics outfit, she discovered that the quality of the clothes was outstanding and that each item was built to last.
Like Teri, thousands of Fabletics customers have become VIP members thanks to the amazing value of the program. To further the brand’s success, Hudson decided to open up a handful of Fabletics stores around the United States, encouraging workout fans to come in and try clothes on in person before signing up as VIP members. The technique is known as the “reverse showroom” and uses physical stores to drive more traffic to the website.
Customers who walk into a Fabletics store are able to see for themselves that the clothes are worth the price. While they shop, they are encouraged to become VIP members. Most customers cannot resist the value and sign up before leaving the store.
This strategy has been a success, resulting in more VIP members signing up every day. Now, Hudson is opening more stores around the United States and in Europe. It’s clear that Hudson knows what she’s doing. Her brand currently earns more in revenue than the Amazon workout apparel department. Worth over $100 million, Fabletics is the result of risky strategies and a deep knowledge of the modern fashion consumer.