Amazon holds a tight grip on its 20% share of the fashion e-commerce market, but, even so, Kate Hudson has managed to turn her Fabletics idea into a $250 million success story. How did Hudson achieve this? The actress turned entrepreneur melded her idea of unique and inspirational activewear with an ingenious new business model that brings money-saving choices and convenience to the customer. Ms. Hudson says she became passionate about her idea for Fabletics, because, before her unique brand came along, yoga pants were selling for $250 per pair and that was limiting the availability of activewear to the general public.
There’s a growing trend among shoppers in which they browse in store, but make their purchases online. While many stores view this practice as detrimental to their business model, Kate Hudson used to her advantage, benefiting from this “reverse showroom” practice. Now, when a shopper tries on a Fabletics product, the product instantly gets transferred into the customer’s online shopping cart.
While the consumer isn’t obligated to purchase every item sent to her or his shopping cart, the practice is convenient for shoppers and gives Fabletics a strong indicator of growth and its consumer base.
Kate Hudson shared her strategy and reveals that it wasn’t solely based on the “reverse showroom” technique, but also in identifying Fabletics’ potential customer base. First, Fabletics was designed to provide activewear at lower prices, making their products more widely available to the public. Hudson adds that her next goal was to offer a wider range of styles, so women of every body type would be represented in the Fabletics line of products.
Many times, celebrities will invest in a product and let others run the business, but that isn’t the case with Hudson. The actress takes the time to look at sales numbers every week, while also keeping just as close of an eye on new collections and marketing techniques.
“You have to be increasingly creative with marketing and design to have a successful company,” says Kate Hudson. “Business doesn’t lack creativity.”
The Fabletics co-founder says she relies on the big data to make decisions for the course of her company. By offering a quiz to her new customers, Kate says she can learn exactly what people expect from Fabletics and what they’re looking for in future collections of activewear.
Keeping in line with the Fabletics mission, Kate Hudson says the best way to succeed is to believe in yourself and take risks.
To launch your own journey, take the Fabletics Lifestyle Quiz.