The Continued Success of Athletic Wear Company Fabletics

Looking good at the gym has never been so in. With the rise of Instagram fitness models, a new standard has been set for those looking to hit the gym. Kate Hudson saw the need for a brand of workout attire that would help women feel better about the way they look while working out. Long gone are the times of baggy sweatpants and a t-shirt. Hudson has taken on the activewear industry to provide high-quality workout gear that boosts confidence. Her company Fabletics has skyrocketed over the past three years and doesn’t seem to be slowing down anytime soon.

 

In an industry where Amazon controls 20% of the fashion market online, it can be very difficult to stand out above this giant. However, Fabletics has grown into a $250 million dollar business in a relatively short period of time. The monthly subscription business model which Fabletics has implemented is a large reason why these revenues have been so impressive. It looks like individuals who are getting serious about their fitness are willing to pay an extra price every month on top of their gym membership in order to have new athletic wear to sport at the gym. It makes sense why having new gym clothes each month would help to motivate an individual to keep returning to the gym.

 

Fabletics is also committed to growing their brick and mortar retail side of the business as well. With their merger of e-commerce and retail, Fabletics is showing that there is a whole new way of doing things in modern business. When a potential customer walks through the door of a Fabletics retail store, they are usually already VIP members. This pre-existing business relationship helps customers spend money without having to decide whether or not they trust the company. Other e-commerce based businesses are now realizing how mixing brick and mortar retail options along with their online stores could help to raise revenues drastically.

 

This business model which Fabletics is introducing has proven to be very successful over the past three years. The online data which their e-commerce can provide helps Fabletics to more appropriately decide where to open their retail stores across the nation. Also, making higher end activewear available to those on a limited budget proved to be a very wise business move. There is a lot that other companies could learn from the continued success of Fabletics and their business practices.