Fabletics was founded in October of 2013. The co-founders are Don Ressler and Adam Goldenberg. The idea for Fabletics came from an issue that Don Ressler and his wife dealt with on a daily basis. He and his wife are athletic and spend a lot of time in athletic wear. They noticed that most of the athletic clothing all looked the same and was not especially comfortable to be in. Don Ressler wanted to change that.
Don Ressler and Adam Goldenberg brought in Kate Hudson to be the spokesperson for the brand. She has a passion for fitness and has a strong belief in what Fabletics represents. Together, the three of them set out to make Fabletics a success. In the three years that they have been in business, the company has grown more year after year.
When Fabletics began, a strong business plan was created. They knew that the competition in the fashion e-commerce market was strong. Amazon is a major player in this field. Amazon controls abut 20% of the market, and Fabletics needed to find a way to compete.
When Fabletics began, they conducted their business entirely through their website. Customers were able to log on and see all of the products that were available. Customers were also given the option to become VIP members. VIP members were asked questions about their clothing preferences. This information was then used to create a customized shopping experience. Deals and specials would be offered to customers based on their VIP membership.
As Fabletics grew, the decision was made to open physical stores. Based on the data collected from VIP members, they were able to determine which areas would be best suited for a store. Fabletics was also able to decide which products to carry in their stores based on what previous customers had bought.
Fabletics took a backward approach to their business plan. Most businesses start out with physical stores and then moved their products online. Fabletics first built their brand and customer base through their website. When they opened their physical stores, they already had an established and loyal customer base. Approximately half of the customers who walk into a physical store are VIP members. They already know the brand well and have their preferences in place.
In business years, Fabletics is a very new company. Even though they are only three years old, they are currently valued at over $250 million. They have seen growth each year of at least 35%. These are huge numbers for a company that is so new. These numbers are also impressive because a huge competitor of Fabletics is Amazon.
Fabletics took an “outside of the box” approach to how they are running their company. This approach is paying off in a big way and Fabletics has seen huge growth. They are on a path to continue up and become even more successful.