Now, four years later, Kate Hudson has taken the fashion industry by storm by consistently developing brilliant strategies that have earned the athletic apparel brand incredible success.
Now valued at over $250 million, Fabletics earns more each year than Amazon’s exercise apparel department. A large part of the company’s success has to do with Hudson’s understanding of the priorities of the modern fashion consumer. She realizes that today’s shoppers care more about customer relationships and personalized experiences than catching a good deal.
The Fabletics VIP Membership Program
Fabletics was launched as a retail website, complete with an online shopping cart and an inventory of hundreds of extremely stylish athletic apparel items. The company’s claim to fame, however, is its VIP membership program. Instead of shopping for items by browsing through the online store and adding them to the shopping cart, VIP members pay a monthly fee to receive a full exercise outfit in the mail each month. The flat monthly fee of $49.95 means that VIP members actually pay less per item than they would had they purchased each item through the shopping cart.
Fabletics selects the outfit for each VIP member based on a lifestyle quiz that is given to customers upon signing up. This quiz gives Fabletics an idea of which products each subscriber wants based on their tastes in clothes as well as the types of workouts that they enjoy.
Blogger Teri Hutcheon has been a VIP member for several years. She was first motivated to join the VIP membership program out of convenience. With a busy exercise schedule, Teri had spent much of her time shopping for workout clothes, often spending up to $50 on just a pair of athletic leggings. Letting Fabletics select the clothes for her was a dream come true. Plus, Teri was dazzled by the affordable prices of the high-quality Fabletics products.
Recently, Fabletics has introduced physical stores around the country. These stores are reverse showrooms, designed to encourage customers to join the VIP program by building personal relationships and letting customers try Fabletics clothes on in person. About half of the customers who walk into a Fabletics store are already members and 25 percent become members before walking out. The success of the strategy has led to the development of more stores around the world.
If you want to join the VIP membership program and start receiving a workout outfit in the mail each month, visit fabletics.com and take the lifestyle quiz.
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