A few years ago, Kate Hudson launched Fabletics. Since then, Fabletics grew into a $250 million company. Recently, Kate Hudson won the athleisure brand of the year award. Fabletics dared to challenge the high-priced products of more expensive brands like Nike, Under Armour, and Lululemon.
What are Kate Hudson’s secrets to success? Well, the success of Fabletics is due to many aspects, but Mr. Hudson’s success comes from five entrepreneurial tips. The first thing she did was identify a marketing opportunity. She noticed how many ‘activewear’ brands were too expensive. She wanted to create a brand that was more affordable.
Secondly, she’s very hands on. She’s not the kind of businesswoman who looks over quarterly sales. She stays up-to-date on which apparel is selling and which apparel isn’t. Often, she’s surprised at what members are buying. Anything that isn’t selling enough is immediately taken off the site.
Thirdly, she uses facts to make decisions. While some professionals rely more on gut instinct, Hudson prefers data; data offers better choices. That’s why Fabletics has its new members take a quiz before joining. Fabletics has several lifestyle quizzes that people can take.
Fourthly, she uses her inspiration to keep her going. Her biggest inspiration is her mother, icon Goldie Hawn. Goldie and Kate both work with the Hawn Foundation. Her mother’s charity work inspired her when she was younger. Hudson’s had a can-do spirit she uses to drive her career.
Because of Kate Hudson’s personality and business skills, Fabletics is outperforming Amazon. Amazon controls 20 percent of the fashion e-commerce market. Fabletics is succeeding in a way other companies never did. Fabletics embraced the modern elements of a high-value brand. In the past, high-value brands had good products or services at fair prices. Today, it takes a lot more than that.
Fabletics responded to the shift in determining factors by introducing “reverse showrooming”. Fabletics uses its membership mechanic to host events to attract more visitors. The events help build relationships and get to know the local market.