Just three years earlier, co-founders of popular subscription-based company JustFab, Don Ressler and Adam Goldenberg, teamed up with celebrity Kate Hudson. They joined hands to create an idea of an activewear brand that would target women customers. According to the plan, Kate Hudson would become a brand ambassador to attract thousands of ladies who already loved Kate’s active lifestyle. As a result, Fabletics was born.
Launched in October 2013 as an athleisure activewear brand, the model was based on subscription where subscribers would get exclusive access to member-only inventory. After three years, the idea has turned into Gold generating revenues in access of $250 Million. As the subscriber base continues to grow, Fabletics has also introduced menswear as part of its product-line. Soon, customers will also see swimwear and dresses. However, the new product range will also be introduced across various retail outlets of Fabletics in the United States.
Regarding retail outlets, the company initially opened five stores in popular shopping hubs in the United States. According to the management, they wanted to gauge the response of customers before breaking the news of expansion. As customers continued to pour in, Fabletics has finally decided to announce that it is going to open nearly 100 stores in the next few years. Perhaps, this is not the first time that a company has experimented with both online and offline models. Earlier, Amazon was also highly successful in integrating both sales channels. Some analysts believe that if the trend continues, we may see yet another Amazon-style success story.
According to the President of Retail, Gregg Throgmartin, the online sales for the company are very strong. In fact, the success of subscription based services has inspired Fabletics to open retail outlets because some customers want to feel the fabric. Likewise, it is customary for many customers to go in the store to try the outfit before using their membership perks to buy the outfit at substantial discount on the Internet. Regarding these perks, it is also notable that online subscribers of Fabletics get almost 50% discount on some of the most highly anticipated activewear.
Recently, Adele Chapin at Racked.com reported that Fabletics has issues with subscribers who complained that they were charged for the services, which they did not opt. Responding to such allegations, CEO of Fabletics, Adam Goldenberg explained that the growth of Fabletics meant that many subscribers weren’t aware of the online subscription model, therefore they felt cheated. To rectify the problem, the company has implemented several new initiatives. For instance, the new feature “Skip the Month” allows subscribers to skip the monthly charge if they did not avail any service during a specific month. Accordingly, Better Business Bureau has also confirmed that the number of complaints against Fabletics has decreased significantly.