Since its launch in 2013, the athleisure brand Fabletics has won many admirers in the activewear industry. In just three years, online revenues of the brand has reached approximately $250 Million, which is also a testament to the growing popularity of the subscription based model. Each year, thousands of subscribers looking for trendy activewear shop the online store to get their hands on the latest outfits approved by Kate Hudson. In fact, Kate Hudson is one of the main reasons for women subscribers to instantly approve Fabletics, when it launched in October 2013. Kate co-founded the company, therefore, she takes personal interest in deciding which activewear goes to the market on consumerist.com. In addition, she spends a lot of time marketing her brand wherever she goes.
However, the celebrity link is not the only reason for the immense growth of the brand. Co-founders Don Ressler and Adam Goldenberg are successful entrepreneurs who have revived the concept of subscription-based model. Accordingly, Don and Adam preferred an activewear brand that can target a growing segment of the American society by offering clothing at every price-point. Besides, it was also important for the management to keep its activewear competitive by offering lower prices compared to its competitors. The idea took off as hordes of new subscribers quickly joined the trend making Fabletics one of the most innovative brands on the Internet.
The immense growth of Fabletics also led to growing number of customer complaints, particularly from new subscribers. Unaware of the subscription-based model, many users complained that they were charged for the services they never used, reported Racked. To provide a solution, Adam Goldenberg has confirmed that customers are no longer required to pay if they do not shop in a calendar month. For example, subscribers are allowed to use the option “Skip the Month” if they did not shop, online.
The success of the brand has prompted Fabletics to open retail outlets. Initially, Fabletics was seen as opening few outlets in some of the most popular spots in the United States; however, recent news confirms that Fabletics will open nearly 100 retail stores in the next few years. If there was any doubt regarding the expansion, a wave of new openings across the United States have dispelled rumors. It is also evident that numerous stores are already operational across America.
Interestingly, President of Retail, Gregg Throg Martin has confirmed that the decision to open new retail outlets has nothing to do with the online model. Already, the online model is generating hefty sales for the company. As such, the integration of both online and retail models will complement each other to generate even greater interest.