Fabletics – Taking On Amazon

Amazon controls about 20% percent of the fashion e-commerce markets. This shows just how difficult succeeding in the fashion industry actually is. However, Fabletics that is run by Kate Hudson is doing it, and doing it big. They have managed, in just a span of three years, to grow a $250 million business. Fabletics uses the subscription mechanic to sell their “activewear” to its ever-growing number of customers.

The catch is pretty simple. Consumers prefer brands that are aspirational. Brands that push them a little bit more while, at the same time, offering membership and the much-needed convenience. These aspects result in a powerful combination. Seemingly Fabletics discovered that and has capitalized on that knowledge to be a leader in the “activewear” movement that is growing significantly.

A sneak peak in the history of high valued brands, the common factors that have been determining the value of a particular brand are the quality of goods and services and their prices. However, the recent shift in the market means that this combination alone is not enough to steer a company into conquering the markets. Instead, other aspects have come into play and play a significant role in the customer preference of a brand. Some of the new elements include customer experience, last-mile service, exclusive designs, gamification and brand recognition. These are some of the latest additions without which the modern customer would not opt or consider a particular brand.

Fabletics can be likened to Warby Parker and Apple. Their positioning and strategy is paying off. The company intends to open more physical stores. These will be an addition to the sixteen stores that are already in existence in Illinois, California, Florida, and Hawaii.

According to Gregg Throgmartin, the General Manager of the company, the secret to success in business and conquering the market is to build a modern version of a high-valued brand right from the first day. He said that the company’s membership model is what allows them to offer personalized services to their customers and on-trend fashion at just half the price of the company’s competitors. He is of the view that making people happy is much easier when you know them and what they actually want.


About Fabletics


Fabletics is an online retailer company that sells activewear and other accessories. The company was founded in July of 2013 by Adam Goldenberg, Don Ressler, and Kate Hudson. The headquarters of the company is based in El Segundo, California in the United States and Don Ressler acts as its Chief Executive Officer. The company through its subscription service offers its clients personalized outfits for sporting. The outfits are chosen for them based on the information they provide on their lifestyle and their preferences in fashion.

The company opened its first ground retail store in 2015 and currently has sixteen stores in various parts of the United States. The company intends to open up to 75 stores in within the next 3-5 years. The ground stores are meant to provide a physical look to what the customers want to purchase to improve accessibility and satisfaction in what the company offers.