Fabletics is a popular subscription brand co-launched by Kate Hudson. In just three years, the brand has become one of the fastest growing subscription based services of its kind anywhere on the Internet. Despite the fact that the management does not publicly disclose its sales data, analysts predict that brand owners are already generating more than $250 Million in yearly revenues.
The success of Fabletics can be attributed to its marketing tactics. For instance, co-founders of its parent company JustFabs, Don Ressler and Adam Goldenberg joined hands with popular celebrity, Kate Hudson, to launch an activewear clothing line that would target nearly every price point in the industry. Since its launch in 2013, the idea has become an instant hit with customers as Kate Hudson and company approves each activewear before it hits the market. For thousands of fans of Kate Hudson, the sign of approval from their role model is enough to convince them of the feasibility of the activewear. In addition, Fabletics on finance.yahoo.com keeps an eye on the price trends in the market. By doing so, the management is always able to come out with a trendy outfit that is below the market price.
Just like any large brand, Fabletics also has its share of customer concerns. Racked.com reported that new customers, unaware of the subscription based model, complained that they were unreasonably charged on a monthly basis even if they didn’t buy anything. Therefore, Fabletics has started a new program, called “Skip the Month”. Under the agreement, if subscribers do not shop in a calendar month, they can easily “Skip the Month” by logging in their online account before 5th of every month. According to the CEO, Adam Goldenberg, such innovative ideas has helped Fabletics significantly reduce customer complaints.
Recently, Fabletics has added another twist to its product-line. The management has decided to go full-steam by opening retail outlets all across the United States. According to the management, the purpose of retail stores is to offer additional channel to customers who want to feel the clothing before buying it. They also claimed that the decision to open retail stores should be seen as an expansion model because it has nothing to do with online sales, which are already generating hefty revenues for the company on consumerist.com. When rumors started circulating the Internet about retail outlets, analysts believed that Fabletics will cater to specific markets around the United States; however, it is becoming clearer that the company plans to open nearly hundred outlets with the next few years.
If anyone is in doubt of the expansion, they will be surprised to find an ever growing list of locations listed on the official website. Considering that Fabletics has introduced menswear, and it is already thinking about swimwear and dresses, the company seems to have big plans for the future.