Fabletics is an American athletics-wear and accessories brand that was founded in 2013. The brand offers a selection of apparel for highly physical activities as well as for casual outings. While the brand primarily targets women, it also has a line called FL2 for men.
The company began as an e-commerce retailer with popular actress Kate Hudson as its cofounder. Hudson helped draw 1.4 million members to the platform. The first brick and mortar store of Fabletics was opened in 2015 and the chain has steadily expanded after that. In 2018, the company had a presence in 10 countries with plans to open in more. As of today, in 2020, the company has 42 stores in North America.
The brand’s estimated annual revenue is close to 300 million. The sales growth of the company is estimated at 20% year over year. This makes Fabletics a retail success story. Adam Goldenberg and Don Ressler are the co-CEOs of owner firm TechStyle Fashion Group. They are the driving force behind the scenes.
Fabletics is widely known for its distinctive membership model. Customers have the choice of making a one-time purchase or paying a monthly subscription fee to receive credits for a new outfit each month. Every month, the customer is given a new outfit of choice unless she chooses the ‘Skip the month’ option. The company has been subjected to criticism because of this model. The customers are only given 5 days to cancel their subscription for the month and they are charged if they do not cancel it in these 5 days.
In May 2017, the brand announced a collaboration with singer Demi Lovato in support of the UN’s Girl Up campaign. In 2019, Fabletics collaborated with Kelly Rowland and Maddie Ziegler and made their lines available to members. The brand’s body-positive messaging draws a large crowd of audience. This model has allowed the company to create a fast-fashion supply chain. Merchandise movement is very speedy. New products are dropped weekly in some cases. Efficiency in supply chain management, logistics, and operation has been a crucial factor in the success of Fabletics. The brand aims to compete at both quality and price. This leaves a small room for error in margins because of inefficiency.
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