How did Fabletics grow $235M in revenue?

What if I told you a startup went from zero to $250 million in revenue in just three years? Well, Fabletics did just that. Transforming a simple idea of stylish, affordable clothes into a global activewear phenomenon. I'm Tory and as always in this video, I'm going to break down the marketing strategies brands use into actionable universal lessons your business can learn from, no matter the size. Back in the mid-2000s, Adam Goldenberg and Don Bressler spotted a big problem. Workout cloth clothes were either super trendy but way too expensive or cheap and not very stylish. So in 2013, along with actress Kate Hudson. Yes, that Kate Hudson. I love you Penny. They launched Fabletics with the aim of providing affordable yet trendy activewear that combines style and performance. Within three years, they turned into a 250 million dollar business boasting 25% year over year revenue growth. They pulled in $150 million in revenue in 2015 alone, which primarily came from their e commerce site. One of the biggest reasons they accomplished that is due to our first strategy. Strategy 1 A subscription membership model Fabletics stood out in the activewear department with its unique VIP subscription model. It's based on a monthly subscription where members pay a fee to receive credits for a fresh outfit each month. The majority of Fabletics customers choose to become VIP customers rather than making one off purchases. Why is this? Well, with the flexibility to select their own outfit or skip a month without charge, members enjoy personalized shopping. In addition, they gain early access to new collections, up to 50% discounts and a reward system leading to freebies. And everybody love freebies. While membership isn't mandatory, non members miss out on these perks and pay regular retail prices. For example, this shirt I have on right now costs $60. This innovative pricing model boosts customer loyalty and retention. But Fabletics didn't stop there. They then leveraged the passion and loyalty of these customers to drive even more growth. This brings us to our next strategy. Strategy 2 the Ambassador Program Fabletics Ambassador program invites the brand's most passionate customers to become its promoters, creating a powerful word of mouth marketing strategy. They offer ambassadors perks like early product access, exclusive discounts and event invitations for posting about the brand. They look for three different types of ambassadors. Everyday customers. These are people who share their love for Fabletics on social media and blogs. Celebrity Ambassadors. These are high profile personalities like Kate Hudson and Demi Lovato. The bigger the better. And influencers. And an influencer is a person who can sway others purchase decisions due to their online authority or relationship with their audience. Fabletics collaborates with a wide range of influencers regardless of follower count. These partnerships, like the KickButtonLookQ campaign, allow the brand to tap into niche communities and boost sales. The perfect example of this is fashion blogger Tess Christine. She creates authentic content around Fabletics, sharing her genuine opinions and promoting the brand in a relatable way. For instance, during the pandemic, she partnered with Fabletics for a $500 gift card giveaway, activating her followers and amplifying the brand's visibility. Now that you know how Fabletics gets their biggest fans to boost their brand, let's move on to another aspect they do masterfully. Strategy 3 Adjusting strategies for Different Social Platforms Fabletics has learned to leverage the unique features of different social media platforms, particularly Pinterest, to boost its reach and conversions. With the company seeing a 150% growth on Pinterest in 2019 alone, they found that video content and user generated content drove higher click through rates on the site. So they started investing more in those areas, with visuals and user engagement being crucial. In Pinterest, Fabletics used video content like the Kate Hudson editorials to attract more attention. All right, let's hit pause for a second. We've just dug into Fabletic's playbook. Now let's pull out the big learnings from their wins. Remember, these aren't just tactics for the activewear industry, they're lessons for any business looking to grow. Lesson 1 Leverage Membership models for Customer Retention Fabletics VIP Subscription Model demonstrates the significant impact of subscription based systems on customer loyalty and retention. Introducing a similar model in your business could incentivize regular purchasing and foster customer engagement. You can start small by creating a simple email loyalty program. Reward customers for repeat purchases or referrals with exclusive discounts, early access to new products or small freebies. This encourages regular engagement with your brand and gives customers a reason to keep coming back. Lesson 2 Utilize brand ambassadors to amplify reach Fabletics Ambassador program is a shining example of word of mouth marketing. Look for real fans of your brand, whether they're just customers, influencers or even celebrities. An easy way to find out who your biggest fans are is to ask for user generated content. You can run a contest or giveaway where users need to post about your product or service with a specific hashtag. This way you can identify potential brand ambassadors for from those who participate. Once you find people who actively engage with your brand on social media, invite them to become brand ambassadors in exchange for sharing their positive experiences or products on their channels, offer them exclusive discounts or early access to new products. Turning them into your cheerleaders can really pump up your brand's reach and authenticity. Lesson 3 Tailor strategies for Different Social Media Platforms Fabletic success with Pinterest underscores the importance of of adapting your strategy for each and every social media platform. Understanding each platform's unique features and audience can really help you create more effective and engaging content. You can get started here by taking a good hard look at what you're currently doing on social media. Identify which types of posts perform best on each platform. Use this insight to tailor your future posts to each platform's strengths, enhancing engagement and reach along the way. This won't require additional spending, just a smarter approach to content creation. From tapping into the benefits of a subscription model, leveraging the power of brand ambassadors to tailoring strategies for each social media platform, Fabletics rise to a $250 million business wasn't accidental. It was a testament to the power of innovative and audience focused strategies. As always, if you like what you heard, be sure to subscribe and comment down below to let me know which brand you want me to dive into next. Until next time, Bye bye. I can find this client info.

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