Backwards Success: Using Reverse Showrooming to Win

Kate Hudson was inspired to found Fabletics when she uncovered an unmet market niche. She found many athletic fashion options for women with high incomes and women with modest incomes, but little to appeal to the middle income market. Combining her flair for fashion with her interest in exercise and healthy living, Kate began offering Fabletics directly to the public, bypassing the traditional brick and mortar route.

 

Subscription anyone?

Fabletics was not designed to cater to the single-item purchaser. They wanted a dedicated audience of repeat buyers to build a strong company. However, other subscription companies were subject to criticism from their customers for poor customer service, quality issues and contract complaints. To address these issues, Fabletics crafted a subscription system that could support long-term membership.

 

Fabletics based the subscription on unique, fashion-forward athlesure clothing of high quality. They designed a customer service group destined to cater to the needs of the customer rather than the needs of the company and they ensured that any subscriber could opt out easily. To sweeten the deal, Fabletics showered the subscription base with coupons, discounts, easy return options and special offers, effectively constructing a deal too good to refuse.

 

Standing Behind her Name: Kate Hudson

Kate Hudson, daughter of actress Goldie Hawn, learned business management at her mother’s knee through the Hawn Foundation. She saw how her mother battled daily for her vision for the foundation against the advice of more experienced people. By keeping that vision at the center of her foundation, she brought it to fruition.

 

Hudson is also a hands-on person at Fablectics, rather than a spokes-model. She stays connected to the company, ready to eliminate products that don’t produce and expand on themes that do.

 

Five Fabletics Success Tips

Hudson founded her company on five simple strategies that certainly seem to be working for her. First, she found an opportunity in the marketplace that was not crowded with competitors. Second, she stays involved – she didn’t just lend her name and leave; she is in there working her brand. Third, she uses the power of big data to find and attract her audience – an essential tactic in a business that relies on subscription support. Forth, she follows her own inspiration. She is not a designer, but she feels she has an understanding of what will work and she used that to feed her success. Lastly, she takes risks. Hudson feels our sojourn on this planet is very short so we should be unafraid to take a step off the well-worn path.

 

Fabletics is now opening shops in malls everywhere, all of which support the subscription system with its associated codes and discounts, and her business is growing each year.

Leave a Reply

Your email address will not be published. Required fields are marked *