Fabletics Burrows JustFab Business Model

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.

Weekend #workout plan inspired by @gingerressler's high-power moves ????

A video posted by @fabletics on

Kate Hudson’s Fabletics Pulling Closer to Amazon

The fight for the top spot in the fashion e-commerce market may have gotten a little more closer than Amazon had hope. Amazon has been sitting comfortably at the top of this niche for years, selling 20 percent of all the apparel in this market despite thousands of competitors trying to grab that spot away from them. Although it was crowded at the bottom, Kate Hudson’s Fabletics has discovered a way to break from the crowd and begin the march towards that top spot. In just under three years, Kate Hudson’s Fabletics has already sold $250 million in women’s active-wear.

 

When Hudson was asked to discuss how her athleisure brand was able to grow so quickly, her response is all about reverse showrooming and her various membership perks for her loyal customers. In order to see these simple yet effective sales components working in real-time, you need to start your journey down at the Fabletics stores in the local mall. Inside these retails shops, you see women lining up to try on all the latest in yoga pants, there are women buying all the leggings off the racks, and even some taking the Fabletics lifestyle quiz.

 

The key to making their mark in this crazy fashion e-commerce market has to do with how online sales are gathered. Since the members are already shopping and trying on everything in the retail stores, those items they try on get uploaded to the online store. If these women visit the e-commerce site, they discover all the pieces of workout apparel that they know fit them is waiting for them to consider. These women will either continue where they left off and shop the larger online inventory, or checkout from the online cart when they have the time.

 

The benefits of Kate Hudson’s Fabletics membership also include your own personal shopping assistant, free shipping for all online purchases, and some serious discounts on all the workout clothing both in the stores and online. The personal shopper looks at your lifestyle quiz answers and picks one item each month that you may want to consider adding to your wardrobe. These perks are all about pampering the customer to the point that they come back time and time again to keep shopping for the latest in active-wear. Amazon may be noticing that Kate Hudson’s Fabletics is in fact getting closer to that top spot each year now.