The main purpose of any business is to make a profit. They way a business is run is a huge factor in whether or not that business will be profitable. Every business begins with a business plan, and the execution of that plan sets the tone for the life of that business. Fabletics is a company that began in 2013 and has taken a completely different approach to their business than their competitors. This approach has paid off for them in a big way.
Fabletics is an athletic apparel company founded by Don Ressler and Adam Goldenberg. Kate Hudson is the spokesperson and a contributor to the brand. The company began with a simple idea and has grown into a highly successful athletic wear brand.
Don Ressler and his wife are very athletic. They spend a lot of time in athletic wear. They began to notice that all of the clothing looked the same and was not very comfortable to wear. Don Ressler set out to change that, and Fabletics was how he was going to put that plan into action.
Fabletics began as an online company. An intricate website was created, and all of the products available for sale were listed on the site. Customers were able to go to the website, look over all of the products, and make their purchases. These were then shipped right to their door.
To create a personalized shopping experience, Fabletics created their VIP program. Customers were able to sign up for this program and were asked a few questions about their preferences and what they liked. By answering these questions, Fabletics would then offer their customers items and specials based on the given answers.
The clothing line took off and Fabletics saw growth of roughly 35% each year. This is substantial for a company so young. With the growth they were seeing, Fabletics decided it was time for expansion. This expansion meant opening physical stores.
The opening of physical stores can be a tough task for many companies, but Fabletics had research on their side. Through their VIP program, they already knew where many of their customers were located and what products they enjoyed the most. This knowledge helped in the decision-making process of where to place their physical stores and what products to stock.
When the stores opened, almost half of the customers walking through the doors were already fans of Fabletics. Most were VIP members and knew what the brand was all about. The customer base was already in place even before any store was opened. This data used in the right way will only help Fabletics expand.
Fabletics began their business venture in a way very few companies have done. They started online and got to know their customers. They then took this information and used it to expand the brand. Their business model has helped them to expand every year, and they are on track to continue that trend.