Fabletics is one of the savviest brands in the fashion industry today. Co-founded by Kate Hudson, it’s also one of the only celebrity-owned companies where the celebrity actually works. Kate Hudson doesn’t use Fabletics as a free-cash business, in which, she just collects checks every few months.
She’s a big part of making the company successful. Sure, being world-famous for her acting talents and fashion sense is a huge bonus. Her fame didn’t make Fabletics a $250 million business. It also didn’t increase the brand’s sales by 43 percent last year. All her fame did was help the brand get its name out into the world.
Once people knew what Fabletics was, it was up to their creativity to stay in people’s minds. So far, Fabletics has done a brilliant job at creating an amazing culture around itself. For a start, it was one of the first affordable, on-trend fashion brands producing activewear.
Fabletics also produces lines for all women – regardless of size or age – that women actually want to wear. Their fashion is meant to inspire women to embrace a healthy lifestyle. That personable trait comes from Kate, who wants to help America with its struggles with health.
There’s a lot to be earned in the activewear market these days. As millennials influence society’s trends, the world becomes more health conscious and relaxed. According to NDP Group, activewear generated $44 billion in the U.S. last year. By 2020, they predict that U.S. consumers will double that number.
As more companies try to get a piece of the multibillion-dollar pie, the economy is shifting its favor. For the longest time, companies had the power to easily persuade customers to buy anything. All a company needed was good products or services at fair prices.
These days, companies don’t have as much power. The truth is that people no longer trust traditional advertising or marketing. As everyone’s life becomes more digital, consumers developed a new way of determining final purchases. Now, they research a company before buying, which includes reading online reviews. It’s just a simple matter of trust. Without trust, companies have no customers.
People trust online reviews like they’re recommendations from people they know. Unlike traditional advertising, online reviews aren’t sponsored. Technology has allowed average people to effectively crowdsourcing their purchase decisions.