In order for people to understand Fabletics and the success that Kate Hudson has had, they will have to understand the business model that she adopted for this business. JustFab was a company that was already in existence thanks to Adam Goldenberg and Don Ressler. Kate Hudson was not involved in this business, but there was a female presence in place. There were several women in the position to market this company, but they never had a grand stake in the initial founding of JustFab. It was a company that was founded by Don and Adam and there were females in place to simply help them build this brand.
Kate Hudson would adopt this business model with the subscription service that was created by Don and Adam for Just Fab. She would also consider herself to be a valuable resource that could help the business build a presence with women. The difference, however, is that she was not just a spokesperson or a figurehead for the business. With Fabletics, Kate Hudson was a co-founder. She did not come in after the company was established. To the contrary, she came in on the ground floor and worked through building this company that would make a splash in gym gear for women that would forever change the clothing industry. She sits on the top right now in this market, and she continues to stay there. Much of her staying power has to do with her ability to market and navigate the business in a way that is reaching millennials.
The millennial crowd is what she started with, and it appears that she has a desire to reach even more people outside the millennium age group. What she is doing to reach these customers is building more stores offline.
That is how she will be able to successfully compete on a larger scale. It is true that she has cut down the cost of operations with an online presence, but there still is room to grow with the offline customer base. There are a lot of customers that do not shop online, so she is still missing a large crowd of consumers that are looking for gym gear. The great thing about having stores offline is that she has the ability to strategically place stores in close vicinity to local gyms. Women that may not have ever considered buying any clothes online may actually take the time to look at gym clothing before they go to a gym for the evening or weekend. This type of offline sell in gym gear can connect ladies with cell consultants for Fabletics. This can lead to a VIP membership where they are getting clothes ordered on a regular basis. This automatic shipment of clothing builds a loyal fan base for Fabletics that allows Hudson to guage just how many people are interested in this company. This is very important information because people have the ability to voice how they feel about Fabletics in accordance to membership.