Just three years ago actress Kate Hudson and TechStyle teamed up to create Fabletics, an e-commerce website that offers fashionable athletic wear at a reasonable price on perezhilton.com. Fabletics, based in Los Angeles, now has a global market with over 1 million paying VIP members and thousands of employees. The company has also started opening brick and mortar stores around the United States, 18 so far, that are designed to compliment the website.
Hudson has commented that the idea for the company came to her when she realized that athletic wear just couldn’t cost enough to make to justify what retailers were charging for them. She started negotiating with TechStyle, headed by co-founders and co-CEO’s Don Ressler and Adam Goldberg to start her own e-commerce site under theirs. Ressler and Goldberg quickly saw the potential of the proposition of what Fabletics would offer. Once in the marketplace the concept caught on very quickly and in large part due to Fabletics, TechStyle is now worth over a billion dollar.
One of the key concepts behind Fabletics is that the company is vertically integrated. Because Fabletics makes the clothes they sell they control the costs and quality, as well as the ability to quickly respond to changing fashion trends on huffingtonpost.com. The company employs some of the top designers in the industry and the clothing is designed and manufactured using next-generation technology.
Read more: JustFab wants to be the next H&M
Another approach the company has taken that separates them from the competition is that is primarily membership based. This helps to create a meaningful and lasting relationship between Fabletics and its customers. This also gives customers a reason to keep returning to the website in addition to Fabletics regularly debuting new limited-edition clothing.
Don Ressler has been involved in founding a number of companies. Don Ressler’s first startup was FitnessHeaven.com. After selling this company to Intermix Media he went on to found Alena Media along with Goldberg. After having too many frustrations with parent company Intermix the pair left and formed Intelligent Beauty along with other brands. Eventually, they founded TechStyle as the parent company to all of their brands.
Ressler has been an athlete for most of his life, so he instantly saw the appeal in what Kate Hudson was proposing. He saw the gap in the athletic wear market where the prices being charged weren’t justifiable, which created an opening for a company like Fabletics to have great success.