The extent to which Amazon was controlling the fashion e-commerce industry in the U.S. was scaring startups off the industry. However, when Kate Hudson teamed up with Don Ressler to establish Fabletics brand in 2013, Amazon’s supremacy was dealt a blow. The new company immediately hit the ground running and claimed its fair share of the market. Three years on, Fabletics had grown to an estimated worth of $250 million and had firmly taken the lead in selling active wear clothing.
The Strategies Behind Fabletics’ Growth
This exponential growth was mostly fueled by Kate’s experience in athletics and Ressler’s expertise in e-commerce. The duo came up with a subscription marketing model that was not seen before in the industry. This model optimizes on customer satisfaction, convenience, and aspiration. The model complements Fabletics’ quality products and at the same time meets the changing market demands and customer preferences.
Having the best quality products and services or even having the best e-commerce marketing may not achieve much without strategically positioned physical stores. In a broader perspective, there is a large group of potential clients that do not buy the idea of online purchasing. This is a fact that Kate Hudson’s Fabletics captured well and strategized well for it. The firm has physical stores in 18 of America’s business hotspots, such as Illinois, Florida, California, and Hawaii.
Reverse Showrooming is another strategy Fabletics has coined effectively to its advantage. This technique builds on showrooming but eliminates the negatives that come with it. Showrooming is seen by many businesspeople as ineffective in the sense that it doesn’t guarantee that customers will make purchases. In Fabletics’ reverse showrooming, however, clients who browse for products online most often than not end up becoming members. The firm also engages in community-based programs that endear it to its immediate community. This strategy has, in the long run, proved productive.
Fabletics ensures that the information out there on its online platforms is the same information clients will gather from the physical stores. This is unlike other firms who hoodwink customers by placing attractive content online, which doesn’t even marry with the actual products in their stores. This strategy by Fabletics builds trust among customers.
Kate’s Advice to Entrepreneurs
Kate Hudson‘s success is an inspiration to many potential businesspeople out there. In the way of helping upcoming entrepreneurs, she recently shared her secrets to succeeding in business. She advised that establishing a business based on a clearly-seen and analyzed opportunity propels it to success. Secondly, Kate encouraged entrepreneurs to be hands-on in management as being hands-off can potentially throw the business off-balance. Self-belief and the intent to take risks in business is also of paramount importance according to Kate.