Fabletics Succeeds While Others Fail

Hollywood actress Kate Hudson is very famous for her movie career, but now she is becoming equally famous for her business career. In 2013, she and a team of fashion business leaders created Fabletics. Hudson and her partners felt that at that time there was not a reasonably priced and stylish athletic leisure brand on the market for women. They came to the realization that there was only overpriced and boring athletic clothing available both online and at brick and mortar stores. In just over three-and-a-half years the small startup company has grown into a $250 million business. Pretty good for an actress without a business background.


How has Fabletics achieved so much success in such a short period? They have focused on what they call a reverse showroom business model. While most traditional clothing retail companies are losing customers to online retailers like Amazon because of what is known as “showrooming,” Fabletics continues to grow its customer base. Showrooming is when people use brick and mortar stores to try on clothes to decide what they want and go online to purchase the items at a lower cost. Reverse showrooming is exactly the opposite. It is where people find the clothes they want to try online and go to the physical store to make sure they like their choice, and they can ultimately make their purchase at the showroom or on Fabletics website.


The blending of online shopping and traditional retail is one of the keys to Fabletics rapid success. They have understood that online information can be used to improve the selection at their physical stores. They use the data collected online to tweak and refine fashion trends, color preferences and local buying habits. They stock their stores based on the data gathered in each region of the country and can customize each location to the specific demographics of each of their showrooms.


Fabletics online lifestyle quiz is one innovative way they gather information on what their customers are wanting, and this is how they can stay ahead of changing fashion trends. The lifestyle quiz asks people to let Fabletics know things like what is their favorite fitness activity, where do they like to exercise and what types of colors match their style. This information is one thing they use to better each customer’s shopping experience, and they encourage everyone to take the quiz.