Against All Odds: Fabletics’ Success in a Competitive Environment

rtq / August 19, 2017

Kate Hudson is a force to be reckoned with. You might not know it given her graceful demeanor and soft-spoken ways, but this Almost Famous star is a businesswoman with a knack for business growth and customer service. She transitioned from one of the world’s most-loved on-screen actresses to being a class act in business, seemingly with ease. In fact, Hudson managed to grow her athletic apparel line, Fabletics, from zero to $250 million in the space of three years, an impressive feat for any business owner. But how did she do it? What made her so successful? And what was she up against?


A Competitive Landscape


With Amazon holding onto 20 percent of the fashion market, most people would have had second thoughts about creating a fashion brand and hoping for success. But Kate Hudson knew that she had more than just low prices. She has a knack for figuring out her target market and reaching them where they are, a skill set she employed in an extremely powerful way when building Fabletics.


Understanding Her Market


One of the reasons Kate Hudson was so successful in creating Fabletics was the fact that she was able to understand her target audience and provide them with exactly the products they need. Going on the assumption that knowing who your market is and what they need would lead to improved success, she took the time to really understand the needs of those who would most likely purchase her items. They were mostly women who wanted functional, affordable, comfortable activewear that they actually wanted to be seen in outside the house. Hudson was on it.


Reverse Showcasing


There’s a trend among shoppers that’s proven to be a negative trend for business owners: showcasing. Showcasing is when you go into a brick and mortar store, look for what you want, and then shop for it at a lower price online. Hudson thought she could reverse that process, starting out with an online presence and bringing her online customers into the physical Fabletics stores. It worked like a charm. In fact, 30 to 50 percent of those who walk into a Fabletics store are already members, and an additional 25 percent sign up in-store. Taking a negative trend and making it a positive for her business is part of what makes Hudson’s approach so revolutionary.


Kate Hudson tapped into the need of many athletes. From casual gym-goers to endurance athletes, her customers love her for creating fashionable activewear that’s as functional and affordable as it is beautiful. Be sure and take the fun Lifestyle Quiz on the Fabletics page to find out which Fabletics products best suit your lifestyle!