Fabletics Is What’s Next As It Edges Near Amazon

Kate Hudson’s Fabletics is unlike any other sportswear company. That’s because Hudson and her team devised an open method of purchasing high quality sports apparel with a subscription. This is an ingenuous manner of purchasing the same look as apparel from name brand manufacturers such as Lululemon, Nike, Under Armour and Reebok; without the “ouch” factor price tag attached.

 

Their online subscription base is what’s helping to launch Fabletics into another dimension of retail greatness. Fabletics is moving in the same direction as eCommerce giant, Amazon. Going from online only to actual retail space. To compete with Amazon is certainly no small feat. So, how did they do it? Well, just ask the Senior Vice President of Fabletics, Dustin Netral. Dustin had this to say in response to the expansion plans of Fabletics, “Serendipity of shopping is important to us but the brand is built on combining global fashion trends with user preference data to elevate satisfaction, we add in new ranges and do subtle tests all the time.”

 

Perhaps, Netral was being a tad bit conservative about the growth factors involved in the surge of Fabletics subscribers. But, we all get it, because women everywhere want the clothing Kate Hudson wears in the Fabletics ads. Fabletics profitability has nothing to do with Hudson’s looks or her body.

 

Increasing profitability is based upon the popularity of Fabletics. Women happily put workout clothes on to both look good and “workout.” As opposed to purchasing clothing and letting the apparel sit tidily folded in dresser drawers or hanging in some closet. Fabletics subscribers want to look “fabulous” in their workout gear and this inspires them to engage in physical activity.

 

Make no mistake about it, Fabletics has the infrastructure to take a big chunk out of Amazon’s 20% choke hold on the eCommerce market. In one year’s time, Fabletics posted a 35% gain, adding to the $250 million business it has done in three short years. Let’s not forget the Fabletics’ premise, how they got into the apparel business and why the concept works.

 

The business premise of Fabletics is matching online subscribers with activewear that fits their lifestyles. Fabletics offers their customers “convenience subscriptions.” For a small monthly fee, subscribers create their own look, mixing and matching pieces. This unique approach gives Fabletics a competitive edge in the “Athleisure” marketplace.

 

But, rather than put emphasis on the appeal of the brand name look, Fabletics believes in offering “high value” to their subscribers. As the General Manager of Fabletics, Gregg Throgmartin puts it, “Our membership model is what allows us to offer personalized service and on-trend fashion at half the price of our competitors. It’s just a lot easier to make people happy when you know who they are and what they want.”

 

Fabletics is set to open additional retail stores. Currently, there are 16 retail stores in Las Vegas, throughout California, Florida, Colorado, Maryland and New Jersey, to name a few of the locations.

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