Kate Hudson is the co-founder of the athleisure retailer known as Fabletics. This was launched in 2013. She has been able to build a brand in a market that was already dominated by several powerhouses of activewear including Amazon. Fabletics is a part of the e-commerce brand, TechStyle Fashion Group. The brand is worth $250 million today. In 2016, its sales increased by 43 percent.
Today Fabletics has over 21 million followers on Twitter. Besides, it has 18 retail stores also. It has a VIP monthly membership model that has 1.2 million members who are spread over eight countries. These members are eligible for discounts that can be up to 50 percent on apparel. Members can avail of pre-selected apparel based on their lifestyle as well as fashion preferences. In this way, Fabletics is offering personalized service along with trendy fashion that is at an affordable price.
Kate has been able to manage it with her name recognition too. After all, she is a certainly and this has really helped. For her, this is an opportunity to create a high-quality line that is affordable and inspires all women. It is not focused on their size or age. Fabletics wants them to look and feel their best as they embrace a lifestyle that is active and healthy too.
Hudson was well-aware that there was not any good quality active-wear line that was affordable too. She knew that athleisure apparel is a growing trend. In 2016, U.S. consumers had spent $44 billion on activewear. It is predicted that this sector will reach $83 billion in sales in the U.S. The Millennials are health conscious and wish to wear active clothing that is trendy too.
Fabletics is able to set itself apart from other companies due to its low cost. Besides, it is banking on its technology too. It makes use of big data in order to track the buying preferences of customers. In fact, this would also help to predict future demand with high accuracy.
Fabletics is a part of the TechStyle Fashion Group that is currently valued more than $1 billion. The other brands of TechStyle include ShoeDazzle and FabKids.
In order to be successful, Kate proposes the identification of marketing opportunities. She could see that activewear was expensive. Hence she could identify a retail white space which other companies were not able to see. She along with her team is designing activewear for women of all shapes and sizes. Hence they are creating ready-to-wear lines for sizes that range from XXS to 3X. She knows that this is a lot of extra work but her team is happy about it.
In addition, Kate Hudson wants to create clothes that can be considered as fun and fashionable too. They should be inspiring people so that they work out more.
She is a hands-on person. Kate Hudson looks at the sales numbers each week. She knows which apparel moves and which does not. Hence she can take decisions accordingly. There are new collections that are being launched every month.