How Fabletics’ Business Model is Setting it Apart From Competitors

The e-commerce business is a challenge for startups as the platform is already dominated by major players such as Amazon. For instance, Amazon claims over 20% of the online fashion industry. Nevertheless, some startups such as Fabletics have made it big in the online e-commerce market. Fabletics was established in 2013 by three forward-thinking individuals: Kate Hudson, Don Ressler, and Adam Goldenberg. While the two gentlemen have experience in the fashion industry (they are the founders of TechStyle Fashion Group), Kate is famous for her exemplary acting skills.

Presently, Fabletics is scaling the heights of the e-commerce fashion industry. The brand has operations in over six countries including France, Canada, and Spain among others. Also, its presence in the US market is ever-growing with the recent addition of new stores to complement the existing ones in Hawaii, Illinois, Florida, and California. Fabletics’ revenues are approaching a quarter of a million, and pundits estimate that the company is on a path to increase its profits further. Most importantly, the company’s number of paying members is over a million; Fabletics uses an online membership platform. For a four old startup, that is quite impressive.

Fabletics’ approach to the e-commerce space is unique as it is customer-centered. Unlike its competitors that focus on quality and price, Fabletics has gone ahead to involve itself with auxiliary services such as last-mile service, customer experience, brand recognition, exclusive design, and gamification; according to Fabletics, these extra services are part of what the modern consumer considers to be high-value. Gregg Throgmartin, the Fabletics’ General Manager, attributes the company’s success to the move by Fabletics to build what users regard as high-value and its membership model.

Apart from their online e-commerce website,, Fabletics has innovative physical stores. The stores are unique because the company gets to build a relationship with every consumer that walks into their store. Although, over 50% of people who walk into a Fabletics store are registered members, over 25% of non-members are willing to become members.

Fabletics’ physical stores are stocked with items that are likely to resonate well with the local consumers. To this end, the company uses online data, real-time sales activities, and input from members and social media. Although the company experiments with some items in their stores, many items are stocked as a result of global fashion trends and user preference data.

Fabletics will continue to educate its customers about its business model and products that inspire an active lifestyle. The company will also learn from venturing into new markets and territories. Fabletics is a testimony that it is possible to build a brand despite intense competition.


Fabletics Offers Members Plenty Of Options

One of the best ways for a company to win is to offer plenty of options for their customers. Customers are always looking for choices. Even with a store that offers specifically what a customer wants, it is important to offer options for the customer. For one thing, people change and they start to want different things at different times. Fortunately, Fabletics offers plenty of options for their customers on how they can shop at the brand. This includes the choice of skipping the month or paying for the membership for members. The options bring forth a lot of excitement and joy for people that are interested.


Fabletics also offers people the chance to shop at a physical store. Many people believe that the physical store is an overall better experience for fashion because there is a lot more one can do at a physical store. For one thing, even the best online displays don’t do justice to the experience of shopping at a physical store. Men and women love to be able to try on their items so that they can know what fits them. While a lot of online shops offer sizing guides, a lot of women and men don’t have time to do measurements in order to figure out their size.


To go along with the options, there are a ton of really good products that people will enjoy from Fabletics. For those that are not sure about the brand, they can read reviews that tell them that Fabletics is a really good store. They deliver on their promises and offer products that are not only attractive, but also durable. Fabletics also has a sustainable business model. The brand satisfies and exceeds expectations for customers such as the one that has written the review on A Foodie Stays Fit.


The style and the material of the items are what makes Fabletics one of the most trustworthy companies to get involved with. People do not have to worry about their clothes falling apart very soon after they have bought it. This is one of the reasons that Fabletics is quickly growing as a company. Another reason is that it lets the customer feel as if he is in control of the company. The company always welcomes input on the types of items that they want so that they will always find items that make them feel good about themselves on any occasion of the day.

Kate Hudson’s success with Fabletics

Fablectics is a company that was started by co-CEOs, Don Ressler and Adam Goldenberg, along with actress Kate Hudson in 2013. The idea for Fablectics came when they saw an opening in the activewear apparel industry that was not being serviced. They wanted to offer high quality and stylish activewear that was affordable and available to everyone at an accessible price point. Their goal is to create clothing that helps and inspires people to get and stay active in their everyday life. They offer trendy designs that people enjoy at prices they can afford. The company’s goal for you to be able to “Live Your Passion” each day of your life.


Fabletics uses a subscription based selling system to grow their business and keep their clothing affordable. Customers can take a quiz to find their fashion personality, and then Fabletics tailors their clothing options to what they would most like or enjoy based on their personality. Stylish, affordable clothing, that is customized to each person’s own personality, is what is making Fabletics such a successful company. Adding in the convenience of a monthly membership makes it a win for busy people who want stylish, affordable clothing, but don’t have the time to shop for it all the time.


Fablectics planned to be a high value brand from day one. Their membership model allows them to give their customers personalized service and trendy products at a fraction of the price of their competitors. People are happy and continue to be long term customers when the company knows what they want and who they are.


Another part of Fabletics success in their use of reverse showrooming. Many brick and mortar retailers are being driven out of business by people shopping for items in person and then buying the items online or cheaper somewhere else. With everyone having smartphones, comparison shopping is easier than ever. For Fabletics, they have turned browsing into a positive for their company. They have started to open up traditional brick and mortar stores to complement their online subscription business. They now have several stores all around the country. Up to fifty percent of people who come to their stores are already members, coming to see the latest styles and offerings in person and try clothing on. When they are shopping and try on an article of clothing, it also goes into their online shopping cart, making the experience virtual as well. For Fablectics, it does not matter if the customer buys in the store or online. The traditional brick and mortar retail stores have just become another element of service that they provide to their customers. Another twenty five percent of those who come in the store, become members in the store. Even more people to add to their customer and subscription base.