The modern business world is saturated with startups that aim to shock the world with innovative new products. However, many of these hopeful young companies fail within their first few years of existence. Are the few companies that succeed simply lucky? By examining the success of one of the world’s most successful startups, we can understand that startup success is credited to a combination of good fortune, excellent leadership, and calculated risks. Fabletics used these aspects of business to experience an unexpectedly high level of success.
Fabletics was created as a humble tech startup in 2013. As a fashion company, Fabletics entered an industry that is known for fierce competition. Failure is common for these kinds of companies. However, Fabletics defeated its competitors to thrive in a booming market. How did the company do it? The company’s products were similar to other competing goods on the market, but they used a drastic business model that broke the mold of fashion companies.
Fabletics’ Innovative Business Model
In the early months of 2013, Kate Hudson and her partners at Fabletics decided to use a technology-based business model. Instead of selling her products through TV advertisements and traditional brick-and-mortar stores, Kate Hudson used an online subscription service. With this service, customers use the Internet to quickly access a wide selection of trending and fashionable active wear. This business model is convenient for consumers, but it also gives Fabletics access to diverse sales data and marketing methods.
Since Fabletics’ business model is based on technology trends, the majority of its sales come from online purchases. This gives Fabletics’ managers a large amount of control over its sales strategies. Instead of attracting shoppers to a physical location, marketers simply need to convert website visitors into customers. Fabletics uses a combination of quizzes, email campaigns, and pricing structures to convert large numbers of website visitors into paying customers. This strategy has been a massive success. In 2016, Fabletics was valued at $250 million.
Fabletics also uses a wide variety of advertising methods to create a large online presence. The growth of social media over the years has been a boon to Kate Hudson and her company. Hudson and Fabletics’ social media managers regularly share their latest fashion trends with women on Facebook, Twitter, and Instagram. Kate Hudson personally uses her iPhone camera to take 30-second videos of her sharing an empowering message while wearing clothing from her line. This has helped tether the Fabletics brand to an impressive woman. This means that Fabletics clothing is beyond stylish. Because of social media branding efforts, Kate Hudson’s fashion options inspire confidence and strength.
As Fabletics expanded on the digital sphere, the company opened numerous physical stores in strategic locations across the United States. 18 brick-and-mortar Fabletics stores can be found in the country. These stores do not drive sales like the online efforts, but they keep people talking about the brand in the physical world. To take advantage of periods of high consumer activity, Fabletics also opens pop-up stores in major cities. These temporary shops spread awareness of the Fabletic’s brand at large events. When combined with well-crafted social media efforts, these temporary pop-up stores can create permanent customers.
Fabletics was originally created to serve the fashion needs of women in the United States. However, the brand has found ways to market new products to men, women, and children. The men’s FL2 line of clothing is expected to be a huge success.
The Depth of Hudson’s Success
Many people in the community of tech startups can only wish to experience the level of success that Kate Hudson has achieved with Fabletics. In less than half of a decade, Kate Hudson has created a giant in the American fashion industry. As one of the most popular companies with a steady flow of revenue, Fabletics is a favorite choice among investors.
However, the success of Kate Hudson is not limited to the appreciation of shareholders. On the social media spheres, Hudson is an incredibly influential person. She has over 21 million followers on Twitter. Her Twitter followers regularly retweet and favorite her comments on world affairs and empowerment. She offers words of encouragement for humans who aim to improve their ways.
Social media is Kate Hudson’s method of communicating her ideas, but she also uses it as one of the best branding platforms the world has ever seen. Since Kate Hudson is an influential figure, she is not limited to advertising her product. She can wear her products, inspire people, and spark fashion trends. In short, she can drive the demand for her fashion options.
So far, Kate Hudson’s efforts have been successful. Fabletics has over 1.2 million monthly members who enjoy stylish clothing trends. These members enjoy diverse options that suit people of all activity levels and preferences. The company’s sales have grown on an annual basis, and it does not show signs of slowing down any time in the near future.
An Idea That Became a Market-Disrupting Brand
Like many innovative startups, Fabletics started as a mere idea. After pondering the possibilities of life and thinking about market trends, Kate Hudson realized that today’s young people are unique. On average, they enjoy comfortable clothing that matches their active lifestyles. Hudson also noticed that some people in every generation share this view of fashion. To serve this preference, Kate Hudson and her partners decided to create a line of clothing that is stylish and suitable for exercise.
Kate Hudson understood that several large companies were selling ‘athleisure’ clothing on the market. However, the leading companies were selling the products at high prices that restricted most people from enjoying confidence-boosting trends. To offer a high-quality substitute to these expensive options, she relied on data analytics to cut her costs.
Fabletics trims operation costs by regularly updating their inventory to match consumer preferences. This is an easy task since all Fabletics customers are required to take a quiz to share their preferences. Kate Hudson places a heavy emphasis on sales data. By knowing what works and fails, Fabletics can dynamically alter its sales strategy. Hudson suggests that a company should never stick with an idea just because the owners would like to believe it will work. At the end of the day, consumer preferences are what truly matter to the company.
Kate Hudson has proven that smart business strategies, data-based solutions, and good marketing drive success in the modern market. Startups can adopt these ideas to improve their odds of success.