Fabletics is an innovative clothing brand and e-retailer that was started in a partnership between actress Kate Hudson and TechStyle Group. The brand is focused on women’s activewear that is fashionable and can be worn all day. The idea of the brand came to Kate Hudson when she was wondering why women’s activewear was so expensive and how it could be provided at less cost to consumers. The brand has proven to be very successful and uses a membership program in order to encourage repeat business.
Recently, Fabletics has been expanding into the world of brick and mortar with retail stores being opened across the United States. Most retail stores consider showrooming to be a huge problem. Showrooming is the term used when a consumer looks and feels products in a store but then buys it at a different retailer online for less cost. At Fabletics stores, they feature what they call reserve showrooming. The company doesn’t care if women buy their clothes, which is exclusive to this brand, in the stores or at their online site. When a woman tries on a piece of clothing, it even goes into her online shopping cart so she can conveniently but it from there if she so chooses.
As a membership model company, Fabletics encourages women who are making their first purchase take a Lifestyle Quiz. The quiz, easy to complete, lets Fabletics know what they find appealing and fashionable. This gives the member the convenience of having clothing shown to them that is bound to appeal to their tastes rather than having to search for it.
At Fabletics, Kate Hudson has five rules which have led to the tremendous growth of the brand. Her first rule is to develop marketing opportunities. Unlike some of its competition, Fabletics has clothing for every size and shape. Her second rule is to stay hands on which involves her looking at sales numbers on a weekly basis and keeping apprised of what is selling and what isn’t so changes can be made to what Fabletics offers.
Other rules of Kate Hudson’s are to rely on data to make decisions. This data includes the Lifestyle Quiz results which point to broader trends. She also stays inspired which includes working on her mother’s nonprofit, the Hawn Foundation. Finally, she says that in order to achieve you have to believe in yourself and take informed risks.
The LA Times recently took a look at JustFab, as it seemingly prepares to transition towards becoming a publicly traded company. As a subscription-based service, JustFab provides its members with a box full of products that cover a wide range of categories, and at significantly cheaper prices than would otherwise be available at a standard retailer. Learn more about Just Fab: https://en.wikipedia.org/wiki/JustFab
Analysts currently predict that the company’s business model will earn them roughly $650 million this year, up from $505 million last year. With these kinds of numbers, it’s easy to see how their last fundraising round had JustFab valued at $1 billion.
While writing on Just Fab, the LA Times did note that the subscription-based fashion retailer recently hired Todd Tapin to act as their chief financial officer. Tapin is no stranger to IPO transitions, which has all but cemented the company’s plans for the future to go public. For his part, JustFab’s co-founder Adam Goldenberg also confirmed that going public was a part of the company’s overall plan, but declined to specify details beyond that point.
It’s interesting to note JustFab’s future plans, given how few subscription-based services are able to reach that level of success in their life cycle. It speaks to JustFab’s quality of service and commitment to its customers that they have been able to build their brand up to the point that it can feasibly expand where few others have made it.
Goldenberg has noted that one of the secrets to Just Fab’s success is in doing what other companies didn’t. While others tried to capitalize on the model too early, Goldenberg instead focused on steering JustFab towards sustainability and versatility.
By acquiring a number of other fashion brands, JustFab services a wider audience while still preserving the savings from its subscription-based business model.
In fact, its cost-saving practices have allowed the company to expand its physical design space, in addition to expanding its control over the market. Designers at JustFab have an entire studio that allows them to quickly react to new trends in fashion and ensure that they’re providing customers with up-to-date clothes. Goldenberg‘s strategy is to provide customers with real value and build their loyalty through programs they care about.