Fabletics is a brand of workout wear that was started by Kate Hudson, the actress. The brand’s success has grown far beyond her imagination. What’s unique about the business model that’s been used by Fabletics is twofold. First, the company offers a subscription service where customers can receive new workout wear each month. Second, the once only online business is not in the process of opening retail stores as well. This model has been used by a few companies and has proven to be rather successful. The “reverse showroom technique,” as the term has been coined by companies such as Warby Parker and even Apple, eases the minds (and wallets) of those wary of online shopping.
Prospective customers are now able to preview the “athleisure” wear online and then purchase it in store. Several other companies are now taking on this approach, including online giant Amazon. This approach gives maximum exposure to the consumer and at the same time instant gratification. Saving consumers time and money is appreciated and leads to increased sales. By picking a smart executive staff, Hudson has taken the company from trial and error to record levels of success, even paving the way for other subscription services to take off, even for male consumers, a once thought unlikely demographic for this type of marketing.
The “reverse showroom technique” as it’s called allows the company to understand where its customers are to provide maximum leverage. Also, the online component is used in the retail stores as well, such as when an item is out of stock. This not only promotes the online business but credibility with those who might not shop online ordinarily. The results are already proving themselves to be effective. Fabletics has already started with more than a dozen stores and is planning on adding even more. Prospective customers can even go online to take a lifestyle quiz to see which type of “athleisure” wear is perfect for them.
Kate Hudson’s new brand has not only grown to impress herself but has certainly gained the respect of the business world as well. This success is a huge step for the world of female entrepreneurship everywhere.