Apparel Company Fabletics Emerges as Top Retailer

In the fashion industry, there are a number of retailers that are competing to get a considerable portion of the market share. However, it is very difficult for a majority due to competition from the e-commerce giant conglomerate Amazon. Since Amazon controls about one fifth or 20% of the total market of the fashion industry, many companies are unable to successful compete on a regular basis. However, a new company known as Fabletics has emerged as one of the few exceptions. Fabletics was founded by Kate Hudson and has established itself as a leading fashion retailer with revenues of up to $250 million per year. A major reason why this retailer is among the most successful in the industry is its subscription model. Instead of selling products one by one, the company sells merchandise on a monthly basis by allowing consumers to sign up for a membership. With the added convenience of membership, Fabletics has been able to make sales on a more consistent basis compared to other retailers.


For retailers in the fashion industry to be successful, they have always had to offer both quality merchandise and affordable prices. While these traits are still important today, retailers in this industry need to have more in order to remain competitive. Retailers in the fashion industry, now have to offer other benefits such as a satisfying experience for customers, frequent recognition of their brand and also developing clothing designs that are appealing to most consumers. Fabletics is one company that has provided these things to consumers and has therefore established itself as a leader in the fashion industry. With its subscription model, Fabletics enables consumers to take advantage of discounts and therefore buy merchandise more frequently. This has resulted in the company earning the revenue and achieving the success it has in its brief existence.


Fabletics was founded by Kate Hudson a few years ago and has quickly become a well known brand in the women’s athletic apparel segment. Hudson realized that women’s athletic apparel was very popular and a type of clothing that many active women value. Since a lot of this type of clothing is expensive, Kate looked to provide women with a way to purchase quality athletic apparel at an affordable price. In order to achieve this, Hudson decided to use the reverse showroom technique. The technique entails allowing consumers to evaluate merchandise on the internet and then make the final purchase at a physical storefront location. As a result, Fabletics has provided consumers with the opportunity to find what they want and then purchase it once they have made a final buying decision.

How Fabletics Has Exploited the Power of the Crowd

Consumer purchases depend on “the power of the crowd”. Modern day customers rely on crowd-sourced reviews to make purchases and completely rely on the reviews as they would a recommendation from a person they know. Many savvy brands have exploited this consumer behavior by developing review-centric marketing tactics. Fabletics is among the brands that have embraced the strength of crowd sourced reviews. Since it was established in 2013, Fabletics has grown by over 200% with a revenue of over $235 million and over a million paying members. Corporate Marketing Officer of Tech Style Fashion Group, Shawn Gold, attributes most of the success of the brand to embracing user reviews. Fabletics exploited the power of customer reviews to foster its growth. Consumer reviews are capable of increasing improved loyalty, customer retention for brands, and customer acquisition.



The Effect of Customer Reviews



According to a study by BrightLocal, 84% of people rely on online reviews in equal measure to their reliance on personal recommendations from people they know. The CEO and founder of Trustpilot argue that people no longer trust traditional advertising and marketing like they used to. Customers prefer to trust the feedback and opinions of the crowd.



A similar study found that many customers research on a business and read the reviews of other customers. A huge percentage of customers are turned down by negative reviews which means that a business’ reputation is among the most effective customer considerations.



Due to the power of customer reviews, many consumer brands include a user review feature on their product pages and website to attract purchases. Since 2014, there has been an increase in the brands that use reviews on their sites. A study by Vibes found that a majority of the searches for reviews are conducted to gather information about a product rather than to compare the pricing of products.



How Kate Hudson Joined Fabletics



Fabletics became prominent after Don Ressler and Adam Goldenberg, managers of “Tech Style Fashion Group” came up with an idea of forming an athleisure brand. At this time, the industry had no affordable and stylish athleisure brand. Ressler and Goldenberg were determined to change the fashion sector and sold their idea to Kate Hudson.



Gregg Throgmartin of Fabletics states that Kate was a perfect representation of the future of Fabletics. The merger between Tech Style and Fabletics helped the firm experience significant growth. Kate was now in business with a company that had the financial muscle, the industry experience, and the resources. To determine which product is suited for you, try out the lifestyle quiz on the fabletics website, believe it or not, you will come to find that there is always something for everyone.