How Kate Hudson’s Fabletics Is Outselling Amazon

With her risky moves and entrepreneurial tenacity, Hollywood star Kate Hudson has managed to turn her subscription service-based athletic apparel company into a fashion empire worth several million dollars. Today, Fabletics is seeing more and more success thanks to the company’s innovative take on brick-and-mortar stores.

 

 

The Fabletics Model

 

Many workout enthusiasts visit the Fabletics website because of Hudson’s functional yet stylish take on athletic clothing. The website is stocked with an endless amount of sports bras and leggings in varying patterns, colors and styles. Additionally, the website sells comfortable yet extremely fashionable knit dresses, purses and jackets. The items found on the Fabletics website are known for being affordable while being capable of withstanding intense workouts.

 

Like all online stores, customers can simply purchase items by adding them to an online shopping cart. Sooner or later, however, most Fabletics customers join the VIP membership program. This program acts as a subscription service, allowing customers the convenience of letting the brand pick out clothing for them.

 

As a VIP member, customers pay $49.95 each month to receive a complete athletic outfit in the mail on a monthly basis. Fabletics selects the clothing items for the VIP member based on a survey called a “lifestyle quiz” that they fill out upon signing up.

 

 

What VIP Members Have to Say About Fabletics

 

When Teri Hutcheon, owner of the popular blog A Foodie Stays Fit, signed up to join the VIP membership program, she was excited about the value. As a fitness enthusiast, Teri spends quite a bit of money on her workout wardrobe. To her delight, she realized that for a low fixed monthly price, she could receive athletic gear made of high-quality materials. Teri noted that rival athletic apparel brands charge the same price for one piece of apparel.

 

 

Reverse Showroom Stores

 

Since the online launch of Fabletics, Hudson and her team have gradually been opening up brick-and-mortar stores around the country. While most physical stores are closing because of the convenience of online retail, Hudson developed a unique strategy in order to make these stores profitable. Known as the reverse showroom, Hudson uses physical Fabletics stores to drive more customers to the brand’s website.

 

When customers visit a Fabletics store, they are encouraged by employees to sign up as a VIP member online. The store also allows potential customers who are on the fence about signing up to see and feel the apparel items in person before committing to the monthly fee. As of now, about one quarter of customers who walk into a Fabletics store end up becoming members.

 

Thanks to Hudson’s entrepreneurial fearlessness, she has turned her athletic apparel brand into a clothing empire. Currently, Fabletics earns more revenue than Amazon’s athletic apparel department. Hudson is planning to launch several more stores across the world over the next several years.

 

Check out the Fabletics website and take the lifestyle quiz to join the VIP membership program and receive a brand new workout outfit in the mail each month.

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

A video posted by @fabletics on