Business Model Talk |Fabletics|

Today I am starting a new series! This is going to jump into the new business aspect of my blog! I hope you are as excited as I am. I have always been interested in business models and entrepreneurship therefore I didn’t know why I wasn’t writing about it. This series will go over different businesses business models and we will discuss why they work, what goals they set, etc. I am aiming for this series to be a very big help for those wanting to jump into entrepreneurship just like myself. Today we are starting with the business by Kate Hudson and other founders called Fabletics.

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Fabletics is an active wear company that does very well. It started out in 2013 with mostly just leggings and now is a full active wear company with collaborators such as Demi Lovato. It is a brand that serves to empower women and create clothes they can be comfortable in.

“I love Fabletics. The clothes are so cute, but most importantly I love what they stand for. The company is all about inspiring women and empowering them to be the best version of themselves, to be strong, and it doesn’t matter what shape, or size, or age. It’s just about empowering women and I love that.” -Demi Lovato

Kate Hudson was actually brought in after the company idea had started because the founders knew they needed someone with a large public scape to promote their business. Although it took a while in 2017 they reached $250 Million in sales.


What exactly is Fabletics? How does it work?

Fabletics is an online retailer that is also a subscription service. It works just as Shoe Dazzle or Just Fab does where every month a certain amount of money gets put on your account to buy things within the store. However, you can notify through your profile on the site within the first few days of the month to skip and the money will not be taken out of your account.


Jumping into the History of Fabletics


 – Adam Goldenburg, Kate Hudson, and Don Ressler found the company and start the vision

-October 1, 2013 is when the website and thus the online store launched


-Made $150 Million


-30-50% of people who walk into the physical stores are already members to the company

-Monthly they ship 800,000 to customers


-Fabletics starts VIP online workout videos

-Over one million VIP members

-18 actual physical stores

-Demi Lovato does her collaboration with Fabletics


-Plans to open 75 stores before the year is over

-Over $300 million in annual revenue

Now that we have gone over the basics of the larger obstacles the company has accomplished over the years now we can jump into the discussion of how they got to these major points.


How did they get to these milestones?

Getting Celebrity Influence

Don Ressler had the idea, the vision, the business but knew he was going to need someone with a high amount of influence in order to get the company to take off. Kate Hudson was the embodiment of what he wanted the company to represent. She was active, positive, and was just the right amount of famous. Adding her onto the team was the first and probably the most important step. This is because a business cannot get sales without recognition. Many businesses spend years getting that kind of recognition but if you have the right business plan and appeal to the right people you can easily speed this up.

Starting with an Online Store

Starting anything online is easier, cheaper, and much more low risk than starting any other kind of business. Starting a store online can be done within a few days with a very low budget. By beginning with this Fabletics had a much easier time making a profit and creating a following through social media and the likes.

Forming Memberships

Many people, including myself shop at a store maybe once or twice a year, not frequently. Stores like that end up loosing customer flow and profit during certain times of the year. By creating a membership for the site Fabletics they have an idea of a base profit they will make each month and this also keeps customers coming back a lot more than they normally would. This gives more traffic and sharing to the site as well through social media. It is very easy to tag Fabletics when you post on Instagram or Facebook.

Collaborating with Celebrities

Collaboration with Demi Lovato in 2017 helped appeal to even larger groups of people. Demi Lovato has a very large fan base and works towards women’s empowerment which goes right along with the companies values therefore it was the perfect collaboration. There are also those who are such super fans that they will buy whatever their favorite celebrity wears so that is a good outreach for the company is well.


One thing I could not find the exact date of was Fabletics charity work. However, I know they did give part of their earnings to Breast Cancer foundations for a while. By donating to well known and well loved charities is very beneficial for a company because then not only are people buying things for themselves but they are helping others. It also shows that the company is caring and society oriented not just money oriented which is a good look.



In conclusion this was an extremely good example of a very successful start up. Many startups fail or don’t succeed for a very long time but this one had the perfect dimensions to draw people in and create $300 million in sales within the first 6 years. If you are thinking about starting a business definitely try and follow some or all of these steps since they are tried and true to work. Let me know down in the comments any other business plans you would like me to analyze!

Bye Lovies!!

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