Not a lot of fashion companies use subscription mechanics to sell directly to customers. Since the birth of e-commerce possibilities, nearly every business uses a website or app to sell directly to customers. Using a subscription mechanic seems like it would limit the number of customers that would buy from them.
As weird as it seems, that’s exactly what Fabletics uses. So far, that system doesn’t seem to be failing. In fact, Fabletics is one of the most popular activewear brands in the world. The company’s grown over 200 percent in the last four years. Last year, their sales increased 43 percent.
Fabletics has something that no other brand has: Kate Hudson. Kate Hudson co-founded Fabletics after some TechStyle executives approached her with just a general concept. Kate had been thinking about starting a fashion line for years. When the opportunity appeared, she knew exactly what she wanted to do with it.
Under her leadership, Fabletics is more than a fashion brand. Activewear is the cross between workout clothes and casual wear. Kate uses the blurred line created by activewear to inspire women to start down a path to health and fitness. She also made her brand affordable so that all women can get in on the inspiration.
For Fabletics, activewear is leading them to a path to success. Last year, activewear generated over $40 billion in the U.S. alone. According to a lot of sources, that number is predicted to double by 2020. Fabletics’ use of a personalized service allows them to get ahead of the competition by interacting with their members on a preference level. They create products their members are more likely to purchase.
Millennials also created a new consumer behavior that’s taking over the economy. Millennials live increasingly digital lives, which means most of their transactions occur online. Initially, this allowed certain companies oversell crappy products. This destroyed the trust that’s existed between companies and customers for decades.
These days, people use online reviews to determine final purchases. Often referred to as the power of the crowd, crowdsourcing is swiping over the web. Now, people research companies and products before spending a single penny. Companies with positive reviews get more business.
Fabletics is one those savvy brands capitalizing on this trend. By embracing online reviews, Fabletics’ marketing strategies create the positive reviews people rely on when researching. The best part: people trust online reviews as though they’re personal recommendations.