Fabletics Sells Both a Service and a Product

Reaching the top in the world of fashion isn’t an easy feat. It takes hard work and some serious know how. That’s exactly what Kate Hudson has done with her Fabletics line of clothing online. It’s become a 250 million dollar business in just three years. It’s for Activewear and isn’t just popular because she is selling it. Here’s the story.

 

It’s all based on a subscription concept. This is becoming widely popular these days. The concept means that the subscriber can access more than if he or she simply bought an item or outfit. It’s more than that though. It’s an industry based on service. People get a service from their subscription as well. That’s one of the largest ways to profit in this category. Hudson does this because the model really works.

 

Consider companies like Apple. What the competition has never understood, unless they evaluate it, is that Apple customers are seen as family. They are loyal to the core because they love the company. They love the idea of something which they are a part of. That sells like hotcakes. That’s why Hudson is offering that same concept with her company. So far, it’s paying off.

 

Her growth has been incredible. She began online, then got so big that she was able to open stores in six cities around the country. That’s 16 stores all together. They’re plans for expansion include putting stores in California, Florida, Hawaii and in Illinois. They have even more plans to sell in every city in the country. It’s no doubt that it will work in no time. People are taking to the brand like they did with Apple. Expansion is happening faster than ever expected. It’s not just about the product or even the fact that they are ordering a subscription to the service. No, it goes deeper than that.

 

They upgraded their customer service back in 2014 when some people wanted to have more access to their favorite items. That sent the company from then in 2016 up in sales by 46%. Their Better Business Bureau rating is through the roof. They are rated A+ by their loyal customers so far. That’s what good customer service looks like. That’s her goal.

 

Many people have asked what the secret is for the success of the business. While it is undoubtedly influenced by the loyalty and service factor, it is also, according to Gregg Throgmartin, the general manager, a personalized service that people crave today. Some people just don’t have the time to do things like pick out clothes. We do that service for them and offer a subscription based system that ends up saving them money on big brand clothing. They expect to reach $250 million in their sales this year alone and increased their sales line by 644% this year so far. Who knows how far Hudson will reach with new stores opening in the near future. One thing is crystal clear though. Fabletics is here to stay.

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