Kate Hudson founded Fabletics with the goal of providing fashionable, high-quality athletic wear at an affordable price. The company has skyrocketed to become the unicorn of the fashion industry. A unicorn is defined as a startup that breaks the mold and sees major success, as well as sets the bar for other startups to follow. Fabletics was founded just a few short years ago, but has since seen major success and has become a household name. The company has garnered over $250 million in sales and boasts over one million members that receive athletic wear from Fabletics on a monthly basis.
The sales model is unique in the fact that it chooses to use a membership model, rather than putting its entire inventory online for individual purchase. Members who sign up pay a monthly amount to receive a full outfit from Fabletics delivered to their doorstep. The membership model has been crucial to Fabletics’ success. While most companies try to achieve success by building a wealth of physical stores and hoping the buyers come, Fabletics chose to give members the entire showroom experience in a digital world.
This is called the reverse showroom model. Instead of spending the overhead funds to build a fleet of physical locations, Fabletics has chosen to create a unique reverse showroom for its clientele. The reverse showroom means that the entire buying experience of purchasing from their brand exists in the online world instead of inside of a physical store. In fact, Fabletics has only a handful of retail stores built in choice cities.
When you visit Fabletics’ website, you are treated to an online experience tailored just to your personally needs. Website visitors are encouraged to take a unique Lifestyle Quiz the moment they visit the website for the first time. The Lifestyle Quiz asks a few simple (and fun) questions such as where you like to work out, what types of exercise you like to do and your sizing information. After completing the quiz, every piece of Fabletics athletic wear you see is tailored to your specific preferences and sizing information. The reverse showroom model allows the shopping experience to be highly personalized. It also allows people to view the items without ever having to leave the comfort of their own home. This style of shopping is greatly appreciated by Fabletics members, many of whom have highly busy schedules and wouldn’t have time to make regular trips to a retail location.