It would take a great deal of chutzpah, for a business to consider going head to head with the online giant, Amazon. However, this is, in fact, the plan for Fabletics, an athleisure company that has become synonymous with Hollywood actress Kate Hudson. Founded in 2013, Fabletics is as an online subscription retailer, and purveyor of women’s sportswear, footwear, and accessories. The company, which is headed up by Co-founders Kate Hudson, Don Ressler, Adam Goldberg, and Chief Marketing Officer, Kristen Dykstra went from being an obscure startup to a $250-million-dollar company, making Fabletics one of the most sought-after women’s athleisure companies online.
As far as competing with Amazon, Fabletics is primarily focused on one small portion of the online giant’s market share, the fashion e-commerce market, which makes up 20 percent of Amazon’s annual sales revenue. Bear in mind, this is not the first time that Fabletics has gone head to head with a competitor; they have successfully competed against popular brands like Under Armour and Lululemon. So what makes Fabletics so popular? Its simple, the company uses their subscription service to market products that not only appeal to their customers but also, encourages company loyalty. In fact, a significant percentage of the company’s sales are derived from repeat customers.
Obviously, competing with Amazon is akin to the story of David and Goliath, but one has to admire the ambition of a startup, so confident in their brand, that they would be willing to give it a try. Of course, Fabletics is not relying solely on online sales; the company has opened several brick and mortar locations, intended to complement their online presence. According to several reports, the brick and mortar locations will not only drive foot traffic to their stores but also, bolster their already successful subscription service by 25 percent.
How successful will Fabletics be in luring away Amazon customers? Well, it’s probably to early tell, but one thing is for certain, Fabletics has enjoyed year over year sales growth since the company was launched, in 2013. So, even if they don’t tap into Amazon’s fashion e-commerce market, they are still one of the most successful online startups to date. If this article has piqued your interest in Fabletics, you’re encouraged to visit one of their retail locations, or visit them online, where you can take the company’s lifestyle quiz to help you find the Fabletics gear, that’s just right for you.