How Kate Hudson’s Fabletics is Taking on The Internet Sales Giants

Fabletics, Kate Hudson’s athletic clothing company is finding its highly profitable niche by mixing technology, personalization and eliminating the high fixed that go with “show-rooming” their merchandise to creatively connect customers with her business’ equally innovative fitness attire.

The company’s general manager, Greg Throgmartin credits the firm’s personalized service that they offer utilizing the business’ membership model for their recent success. This model has worked so well that the company has reported sales in excess of $250 million dollars in a little over 3 years.

The company’s membership technology makes strategic use of consumer browsing habits, by inserting products that customers try on into their shopping carts. By thoughtfully timing the presentation of the digital content with the members’ physical product interactions, Fabletics is able to enhance the buying experience, and the firm’s sales figures.

The business reports that 30 – 50 percent of the customers walking through the door are members. Additionally, they maintain a 25 percent conversion of non-members that enter their outlets.

There are other firms involved in this type of strategy of combining creative and a media-based return on investment technique such as Warby Parker. However, Fabletics implements several approaches that set it apart. Using data collected from its flexible member model, the company is able to forecast inventory requirements and their customers’ likely responses to new styles and products, according to Dustin Netral, Senior Vice President. Data from the store interactions is also used to make improvements to the existing product lines and to send customers a highly personalized “monthly boutique” email and to refine their promotional offerings continually. They also boast business costs that are one half those of their competitors.

Fabletics attributes the success of their marketing approach to their early strategy in formulating tactics to deal with the highly successful Internet retailers, specifically mentioning the online giant, Amazon.com. At 35 percent increase in sales per year, it’s clearly a game plan that is working for the business.

In a recent interview with CNBC, Kate Hudson discussed her 5 habits responsible for her sales numbers:

 

About Fabletics

  1. Locating and Capturing Marketing Advantages
  2. Remaining Involved in the Day-to-Day Operations
  3. Utilizing Big Data from Surveys to Support Decision-Making
  4. Actively Seeking Inspiration
  5. Becoming a Believer in Yourself and Following Through With Healthy Risk-Taking

Co-founded in 2013 by Kate Hudson, the company offers high-quality active-ware for the busy lifestyle of the modern woman. Fabletics reports over 1 million VIP members located domestically and internationally. The brand’s full line of apparel meets every fashion need from “Pilates to yoga” and every scenario from “desk to dinner.”