Over the course of the last four years, Kate Hudson has been gradually turning her athletic apparel brand Fabletics into a $250 million business empire. By combining cute and fashionable workout gear with some seriously bold business strategies, Hudson has managed to create a company that earns more revenue annually than Amazon’s workout apparel department.
When the famous blonde movie star first launched the brand in 2013, many doubted her actual involvement in the company’s business side of things. However, Hudson has since proven herself as a strong entrepreneur with a fearless approach to marketing. Her innovative strategies have inspired young entrepreneurs who want to get into the world of online retail.
One of the things that sets Fabletics apart from other workout apparel brands is its unique subscription service business model. The brand’s website encourages shoppers to join the VIP membership program. This membership program allows customers to receive a new athletic outfit in the mail each month for a monthly fee of $49.95. Shipping is free of charge and subscribers can opt out of the program whenever they wish.
By filling out a lifestyle quiz upon signing up to the program, Fabletics gains insight into which products the customer wants. Then, at the beginning of the month, VIP members are given a choice between a handful of outfits based on the answers they gave when they filled out the lifestyle quiz. They select the outfit that they like most and it’s sent to their door within days.
Teri Hutcheon, lifestyle blogger from afoodiestaysfit.com, joined the VIP membership program because she wanted the convenience of allowing Fabletics to select outfits for her. Plus, Fabletics items are highly affordable. As an avid workout enthusiast, Teri spends a lot of money on athletic apparel.
Teri immediately spotted the high quality of materials used to make Fabletics products. The sweat-resistant fabrics hold up after several tough workout sessions and the colors don’t run in the wash.
Recently, Fabletics opened a few brick-and-mortar outlets around the country. These stores are reverse showrooms, letting shoppers try on Fabletics gear so that they may sign up to the VIP membership program. The company uses online data gathered from the website in order to stock each store.
These reverse showrooms have brought significant revenue to the company. About 25 percent of customers who have made a purchase in a Fabletics store have become VIP members.
If you can’t get enough of stylish workout clothing, fill out the lifestyle quiz on fabletics.com.