Fabletics-Taking the World by Storm

Kate Hudson’s Fabletics product line is succeeding in the fashion e-commerce market of Amazon. This is no small feat, since Amazon currently controls 20 percent of the fashion e-commerce market. Fabletics has grown to a $250 million business in just three years. Fabletics uses a subscription to sell active wear to its subscribers.

 

High value brands are normally expected to cost a lot more, but Fabletics is just as good of a product, if not better than its competition. Some of the things that make Fabletics as a brand and product stand out, are the customer service, brand recognition, last-mile service, and trendy design. These qualities make Fabletics products high quality products, but without the unreasonably high price tag. According to the Krazy Coupon Lady, “It truly is a screaming bargain!”

 

The strategy implemented by Fabletics is apparently paying off as far as the membership brand goes and they will be opening more physical stores this year. This will be in addition to the sixteen stores already located in Hawaii, California, Florida, and Illinois.

 

Greg Throgmartin, General Manager of Fabletics, believes the secret formula of Fabletics is their membership model that allows the customer to receive personalized service and trendy fashion for a fraction of the cost of competitors.

 

When it comes to the way Fabletics does things, they do them a little differently. Fabletics has turned browsing into a plus. Instead of starting off with “pop-up” stores, they built online relationships with their customers on an online structure. They also took the time to get to know the local markets through activities and events. So, because of this, 3o to 50 percent of the people that walk through the door of their physical stores are already members. Fabletics stores also tailor their items to the customers in the area or online, to avoid a lot of searching through articles that just aren’t quite their style. The growth rate for the brand is steady and this makes it possible to keep offering a great product for a great price. This is why so many people are raving about Fabletics. A Foodie Stays Fit blogger comments: “I feel like it’s a really good deal for the style and quality” and a reviewer on Trust Pilot comments: “One word to describe Fabletics-AWESOME!” The public knows when they’ve scored a great product. And the great price is just the icing on the cake.

Don Ressler is a Force to Reckon with in the fashion industry

A lot can be said about Don Ressler. He is an innovative and highly successful business person. He has built his understanding of the internet market for many years now. He has helped in the growth and success of several companies. The success seen in businesses such as JustFab has seen him called an internet marketing guru. Don Ressler started his first company known as FitnessHeaven.com. He sold the company later to Intermix Media at a very young age. He joined Intermix Media where he led several ventures in the company that assisted in increasing the value of the company’s stocks. It was at Intermix Media that he met his future business partner, Adam Goldenberg.

Don and Adam worked at Intermix Media.  However, Intermix Media was sold to News Corp, and the two had little control of the business. They decide to start their company known as Intelligent Beauty. The company sold a line of cosmetics in the internet market space on TechStyle.com. They focused on a weight loss system, skincare, and general cosmetics. A few years after the start, Intelligent Beauty was rebranded to JustFab. JustFab became an e-commerce fashion store that focused on a subscription business model.

JustFab received a funding of $33 million from Matrix Partners at the start. Goldenberg and Ressler enlisted the services of Kimora Simons who worked with them as the president and the creative director of the company. JustFab held another round of funding in April 2012. The company was able to raise $76 million that would expand and grow the business. The funds were outsourced from companies such as Intelligent Beauty, Matrix Partners, Rho Ventures, and Crossover Ventures. Don Ressler established the headquarters of JustFab in El Segundo. The place was an ideal destination as it had an international airport facility and an expandable office space on Brandettes.

JustFab has always focused on expanding its markets to meet customer needs. Since most of the company’s subscribers were parents, they decided to launch a fashion line for children. The brand was called FabKids and started operating in January 2013. JustFab purchased Fab Shoes during that year. Fab Shoes was an e-commerce site based in Europe at https://pando.com/2014/08/28/breaking-justfab-raises-85m-at-what-sources-say-is-a-1b-valuation/. The purchase assisted in the increase of the company’s market by 500,000 in Spain and France. The company had a total number of subscribers amounting to 3 million by December 2013.