In 2013, the founders of TechStyle Fashion Groups Don Ressler and Adam Goldenberg wanted a partner to start a stylish, quality and reasonably priced athleisure brand. Kate Hudson happened to be the perfect fit and Fabletics was created. The Fabletics Company did not, however, have a smooth run despite being founded on a good idea, experienced investors and having a celebrity founder. The brand has had its hurdles earlier on after its launch. There was an issue of quality which delayed the start for six months, and the negative press Kate Hudson faced from other celebrities who felt that the brand’s membership model was a scam. Kate spearheaded an effort to make clear communication the brand’s priority which had Fabletics upgrade its customer service department and implement a new data system.
The data system shows what customers prefer on social media, the quantity of product to make and the type of inventory to design. The data collected also helps Fabletics match their customers with the perfect outfit and producing outfits that the customer will like. Today, Fabletics has grown by over 200%, gaining over $235 million in revenue with more than one million paying members. 85% of the company’s sales generation are from repeat customers, and 17% of new customers are from referrals. The company has managed to gain over 30,000 reviews on Trustpilot with an average TrustScore of 8.2.
Shawn Gold, Corporate Marketing Officer of Techstyle Fashion Group (Fabletic’s Parent company), acknowledges a great deal of the brand’s success to encompassing user reviews or the crowd in their strategy. Several studies have shown that consumer reviews have the direct influence in all industries to increase customer acquisition, improve loyalty and customer retention of brands, and this is how Fabletics has been able to leverage the significant impact of reviews in customer purchases to fuel the brand’s rapid growth.
Most customers today live online. As such they will tend to research on a brand before purchasing and take on reviews before making any decisions. The research helps make an effective crowdsourcing purchase decision. Thus an advantage to Fabletics. The brand has addressed and incorporated user reviews into their policies and product offerings, and they do not stop at that. The brand as well takes on to do an active collection, management, and response to thousands of online customer reviews. The Fabletics brand was able to set an increasing pace after its launch through consumer reviews. The reviews helped refine its products, deal with initial issues and attract new customers.
Shawn Gold points out that crowdsourcing also pushes the brand to be transparent and customer focused. They credit reviews for guiding the name on what the customers want, have a taste for and in what circumstances to improve their lives. Fabletics can make profit on this primarily because they end up producing a product that meets customers’ preference and a client can refer new customers to purchase the product. The company is showing rapid growth with the growing; number of retail stores, membership base and successful partnerships.
Kate Hudson shot into fame after her lead role in the 2000 movie called “Almost Famous.” The actress had appeared in many other movies, but Almost Famous was one of those classic movies that propelled her career to greater heights. Through the film, Kate Hudson won a Golden Globe Award and came so close to bagging an Academy Award for the category of the Best Supporting Actress. Since then, Kate Hudson has made news for all the right reasons most importantly her involvement with a leading fashion brand called Fabletics. The company that focuses on creating the most fashion forward active-wear for women has gained a lot of traction in the fashion industry over the few years it has been in operation.
The online fashion retail space has been Amazon’s specialty for years. Amazon has been able to dominate this industry leaving very little room for competitors. But since the creation of Fabletics, Amazon has begun feeling the heat of competition. Kate Hudson’s Fabletics has focused its operations in the online space that is becoming ever-so convenient to most shoppers. The apparels that the company offers its customers are top of the range designer clothes that cannot be found in any physical or online stores.
So how has Fabletics managed to create a niche for itself in a field that is very competitive? The answer to this question lies partly in the hard work, determination, and passion that Kate Hudson brings to the table. Kate Hudson partnered with Adam Goldenberg and Don Ressler to create a disruptive brand in the fashion world. One of the biggest challenges that Fabletics overcame before it became successful was how it could create apparel solutions that were personalized to an individual customer. Through the process of reverse showrooming, the enterprise was able to come up with a very innovative way of ensuring that its clothes were user-specific.
So how exactly does Fabletics work? Fabletics merges the power of the internet and the convenience of traditional shopping. Through its online platform, customers can sign up and become members of the brand. The clients can then visit a physical store to try some of the clothes which are on the shelves. During the process of fitting the clothes on, each customer’s measurements are taken and saved against their profile. This client’s specifications are now the basis through which one can shop and get recommendations on the best apparels of the month.
Fabletics’ e-commerce platform allows for two types of memberships. One can sign up for regular or VIP status. The VIP membership bills subscribers a monthly fee of $49.99 but the good news is that this amount goes towards the purchase of clothes with the company. Fabletics offers its members monthly recommendations of the latest designer active-wear apparels.
Fabletics boast of quality garments that it avails to the customers at significantly discounted prices. According to Gregg Throgmartin, Fabletics’ GM, the enterprise has employed an entirely new and modern approach to how fashion business is done.
Adam Goldenberg oversees internal operations, data science and analytics, and marketing at the group. He has a rich history of successful entrepreneurship. Adam Goldenberg started Gamers Alliance in 1996, an advertising platform targeting gaming sites. He later sold the business to Intermix Media and went to work for Intermix from 1999 as the COO. Around the same time, Intermix acquired Fitness Heaven, a fitness company founded by Don Ressler.
Soon after, he left Intermix Media and co-founded Intelligent Beauty with Don Ressler in 2006. Intelligent Beauty restructured in 2010 to become JustFab, an online fashion retailer. The company rapidly grew and attracted several successful rounds of venture capital funding. This enabled the company to expand their operations launching FabKids in 2013, an e-commerce children’s fashion retailer. In addition, it also acquired the online shoe retailer ShoeDazzle.
The same year, the company partnered with Kate Hudson to launch Fabletics, the company’s most successful brand. Fabletics established the first offline store in 2013. The expansion into offline stores has been successful with more than eighteen stores currently in operation. The stores have enabled the company to gather more contextual data from its shoppers. This informs business strategy and enables personalized marketing campaigns.
Adam Goldenberg is adept at online performance advertising and direct-to-consumer retail development. He believes in using data analysis and metrics to shape business strategy. His approach is to watch what is evolving in the business and adapt to it quickly.
One of the hottest trends in makeup right now is liquid lip color in bold shades. Whether in a matte finish or something glittery, makeup wearers turn to this formula for both its ease of application and its long wear. There are many brands to choose from, however none is quite as synonymous with liquid lip color as Lime Crime.
Lime Crime was launched in 2008 when founder, Doe Deere, was looking for the perfect makeup to compliment her colorful personality and wardrobe. Her first line of lipsticks, Unicorn Lipsticks, hit the market in 2009 and are still available in a variety of stylish shades. However, it was 2012’s launch of her Velvetines line that really put the company on the map and started the liquid lipstick craze.
The Velvetines line continues to be Deere’s best selling product, its popularity allowing for her to expand into offering her customers boldly colored eye makeup products as well. With colors ranging from nude to bright pink to classic red, and everything in between, and finish options of matte or metallic, there is a Veveltine for everyone. You don’t like traditional makeup colors? There’s a Velvetine for you. Just check out the bright green color of Alien or blue of Teacup.
In addition to the Unicorn Lipstick and Velvetines lines, Doe Deere has developed two other cutting edge formulas for lip color. The Perlees line is described as “a lipstick that bridges the gap between metallic and matte.” Its full-coverage, creamy formula stays on lips for prolonged wear so you don’t have to reapply as often, while rosemary extract protects and moisturizes your lips. Need a little sparkle in your life? Grab a tube of Deere’s Diamond Crushers. Its an iridescent lip topper that can be worn alone or over a liquid matte lip color.
As well as being fun to wear, Lime Crime is certified vegan and cruelty free. Not only does the brand continue to lead the cosmetic industry with innovative formulas and color options, they are also setting the standard for performance and quality while remaining true to their ideals. http://www.dollskill.com/shop/lime-crime.html
Demi Lovato appears has a collect that is coming to Fabletics, and fans of Lovato are bound to see more of what she is offering through Twitter, Instagram and Facebook and upcoming weeks. She is excited about what she has to offer with Fabletics, and the partnership with Kate Hudson may prove that Demi Lovato is ready for her own clothing company.
There are no plans for her to go solo with a full-time clothing company anytime soon, but this is a great launch pad for what could possibly transpire in the future. Right now she is focused heavily on her singing career, but she is taking time to promote the Fabletics brand that is coming to stores and the Fabletics website very soon.
Another great thing about the arrival of the Demi Lovato Fabletics collection is the anticipation that it gives customers for shopping inside the stores. This adds more variety to the Fabletics brand, and this is great for Kate Hudson because she has plans to open over 100 stores. In the next five years this is what she plans to do, and it’s going to take some innovation from Hudson in order to build a brand that will keep customers on their toes.
She doesn’t want to create a brand that is simply going to get bogged down with the same old styles with everything that looks similar. What Demi Lovato brings to Fabletics is something fresh and innovative. This is exactly what Kate Hudson needed as she grew her business and expanded to a diverse consumer base.
Anyone that has taken a look at the Fabletics brand within the last 5 years is well aware that this is a company that is on the move. There is a lot of anticipation for what Kate Hudson is planning to do next, but few people were aware of her transition into so many more physical stores. Even fewer people may have been aware that she was going to add someone like Demi Lovato into the mix. It is a pleasant surprise for most consumers though because it gives her a chance to put her brand in the face of many new young consumers.
The retail clothing industry has a plethora of competitors so any innovation that Kate Hudson can come up with is a good thing. She knows that there are lots of other companies that are trying to offer the same thing that she offers. These companies lack the star power. What she has realized is that her celebrity appeal has been something that has attracted consumers to her brand. She also realizes Demi Lovato is another celebrity anchor that can draw even more attention to her company even if it is only for a short amount of time. All of this attention from celebrities for Fabletics has allowed Kate Hudson to build a brand that is very promising. She has a lot of people interested in what she is providing for athletic clothing through her brand.
Its been placed into the psyche of the shopper for a too long now that when an item that is marked for sale at the stores and is listed at a costly price, then this is an indicator undoubtedly that the product is made with high value components. On the other hand, the plain fact of life in today’s worldwide market, is that if a product does have a higher price, it is absolutely in no way a suggestion of that product being made from high quality content. Equally, if something is marked at a low cost in the outlets, this does not always indicate that the product is made of lower value. Economically, an items price can not be seen as a sign of the product’s value.
The financial system has recently gone through a sharp decline, now consumers are more aware of their money and do not want not risk the mistake of relying on the traditional view that price somehow has a connection to value. People will today, take more of their time to view the ratings and comments that are linked to an item before the consumer decides to spend their money on the item. Aside from this the consumer will look for products that are created with exclusive patterns, that are manufactured in an assortment of color options, and to do commerce with outlets that get in touch with the shopper to find out the consumer’s feelings about the products they have bought. This type of information aids Fabletics to keep products in stock which they know make the consumers happy.
Fabletics learned from their consumer’s behavior. They have a plan for their members to where a consumer’s interest is documented, whether or not the shopper actually purchases the products. When a consumer at the Fabletics internet outlet browses a product, the item is recorded in a customer database and then weighed against the physical store’s products to ensure that if many internet customers have been browsing that same products, then the physical outlet should also have this product on their shelves. Fabletics is renowned for their very large range of variety in regards to chic workout attire, or casual wear clothes. Fabletics was established by the well respected celebrity Kate Hudson with the assistance from two close friends. Fabletics keep an eye on the modern trends in style, and keeps their outlets stocked with similar products to maintain that they have the attention of their important shoppers. Their staying current with fashion is what has made the enterprise stay at the head of what many consider to be the “activewear” field of clothing.
Amazon is also a popular garment retailer for internet purchases. Their accomplishments have permitted them to keep a strong grip on approximately 20% of the garment market in online sales. Fabletics also made incredible progress to attain profit. They expanded to become a $250 million outlet in only 3 year’s time.