Fabletics is the recently founded online sportswear company. This company was founded in July 2013 by Adam Goldenberg, Don Ressler and actress, Kate Hudson. They started off by selling athletic wear and accessories, or what they like to call, “athleisure.” They then added dresses and swimwear to broaden their inventory. In only three years, Fabletics has become a $250 million business.
Kate Hudson’s Fabletics is out-growing Amazon. Amazon controls 20 percent of the fashion e-commerce market and due to the growing popularity of Fabletics, the business could override Amazon’s fashion market. The main reasoning for Fabletics success is due to their membership process. They were able to increase profits year after year by offering a special membership. This membership is free, and then each following month you will be given “new looks.” By the 5th day of the month, you decide whether you want to shop or skip. If you skip, you get charged $50 and it turns into a store credit that you can use at any time. It is due to their smart business tactics that they have become the successful business they are today.
Typically when you want a great product, you get the “name brand” product. For example, this would be like getting a pair of Nike’s over a Walmart shoe brand. The more expensive product is thought to be more durable. As times are changing economically, this is no longer the case. There are a lot more aspects put into buyer loyalty today. Some of those things include: Fabletics has reached its success by achieving an all around great company. They have gained brand recognition, by their advertising. There are many commercials and other ads for Fabletics. They also continuously have great deals and sales. They have also succeeded in having their own exclusive design. They create fashion forward clothing and accessories that are intriguing.
- Customer service experience
- Brand recognition
- Exclusive design
Their recognition of the changing economic system has made them victoriously find success. Having that personal customer relationship is what brings you loyal customers. They have achieved this in various ways, one being by Kate Hudson relating to or reaching the customers personally. Often times Kate will record videos of the products, or even wearing the products. This business tactic raises the reliability people can have on the company. They have made ground-breaking lead way into the economic culture.