How Fabletics Is Competitive In the Current Fashion Market

Running a successful e-commerce fashion business isn’t an easy feat in today’s market. Amazon currently has control over at least 20% of the fashion market online, making it hard to grow and be successful, but Fabletics by Kate Hudson is finding success.

Fabletics has seen a lot of growth in the past three years. This $250 million business has created a niche in the growing active wear movement, and found a way to stand out with their unique subscription method to sell clothing.

Fabletics came from the collaboration of icon actress Kate Hudson and JustFab Inc. Co-CEOs Adam Goldenberg and Don Ressler. Hudson has a passion for motivating and supporting other women to lead a healthy and active lifestyle, and JustFab Inc. noticed the active wear market was lacking something that was trendy and high quality with an accessible price. The three people joined forces in 2013 to create a brand that would work for women competing in an iron man competition, or just fellow mothers like Kate Hudson chasing their children around all day. The quality is high and the price is just right so that the average woman can both afford it and feel great and stylish wearing it.

Fabletics has a unique way of selling, the company offers a monthly subscription for its customers. Simply pay a small monthly fee and each month you will find a new and trendy athletic outfit in your mailbox.

Fabletics has created what can only be called a high value brand from the very beginning. The subscription model allows the company to offer more personalized service as well as incredibly stylish outfits at half the price of most of their competitors. This business model has been such a success the company has been able to slowly add traditional brick and mortar stores to their resume and will continue adding new locations over time.

Through their current business model, Fabletics has been able to build a unique relationship with customers as well as get to know the current active wear market before jumping into physical locations. The result is that between 30%-50% of the people who walk into their physical locations are already members who are going to buy. Along with that, 25% of the customers who walk through their doors become members while on their shopping trip.

While the company’s history hasn’t been without a few stumbles, Fabletics continues to evolve into new territories. The current growth rate for the brand is 35% year over year which is quite impressive. Growth is certainly a factor in proving the company has a quality product at a price that is affordable.