Fabletics is an online subscription e-commerce fashion brand owned by Kate Hudson, Don Ressler and Adam Goldenberg. The trio has done an outstanding job growing the venture from near obscurity to now having a verified net valuation of $250 million. That’s quite the progress especially if you factor in how the fashion e-commerce niche is hard to succeed in owing to the dominance of Amazon. The small fish quickly get overwhelmed and gobbled alive by the giant company, Amazon, valued to be worth close to $100B by industry analysts.
Fabletics on Twitter
As aspiring marketers and entrepreneurs, it makes perfect sense to scrutinize the exact business model used by Fabletics. That’s so you can learn valuable tips and pointers which will improve your brand’s chances of reaching out to more leads both online and offline as well. the brand stands out boldly for its customer care services and support department. Their social media is regularly updated and it contains nuggets of wisdom to ensure you get the latest fashion news as it breaks. Their Twitter handle currently has a following of over 20M followers.
Clients get treated like royalty and feedback is something the management takes very serious. With time, Fabletics came to the realization that their physical stores were really losing on sales to their competitors online. The outlet started collecting the personal information of their existing clientele and that of the customers who simply walked in to do some window shopping. Using that info, the company would be able to do some research online, for instance, on their social media accounts to find out the fashion apparels they loved and where they shopped. The fashion brand would then send them tailor-made suggestions to their inboxes and emails based on the previous shopping trends of the customers.
Kate Hudson Speaks
That strategy transformed the game for Fabletics completely. They were able to amass an extensive database and using highly intuitive algorithms powered systems, they would match and pair customers with fascinating items as soon as they reached Fabletics warehouses. In the long run, the sales of the company picked pace. The sales went up by 43% in 2016, according to CNBC.com. And, they’ve eliminated most of the dead stocks from their inventories.
Future of Fabletics
Kate Hudson gives excellent advice to young entrepreneurs looking to make a break in the e-commerce arena. For instance, she’s very passionate about working out, staying fit and exercising and to that end, she worked on the development of ultra-stylish yoga pants for her and others like her. These yoga stockings cost around $250 in their stores. Her hands on approach to her company’s affairs coupled with the help and assistance received from tech experts have caused a disruptive brand to rise and soar to the skies. Read the rest of her advice to future and present investors here.
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