Activewear brand and online subscription retailer Fabletics was founded in 2013 by Golden Globe winner Kate Hudson under the $1 billion e-commerce ‘unicorn’ JustFab.
Customers shop online, or in store, and can sign up for a unique VIP membership. Each month Hudson and her team debut new products, which customers have the option to buy or forgo, stockpiling credits for a future purchase. In 2015, Hudson’s retail company raked in $150 million in revenue, according to Forbes.
“The membership model; we really did pioneer. You find it when you are one of the first to do that yet it is not always going to move smoothly. That being said, we are running incredibly smooth,” Hudson tells FOXBusiness.com.
In recent months, Fabletics has come under fire after thousands of customers, including singer Cher, criticized the company for its unclear membership pricing, misleading advertisements and unfair cancellation policies.
“If you have a name that websites like to put up to get hits, any negative criticism is going to be way far out in the forefront… we just changed it right away,” says Hudson. “You want to address everyone’s issues… that being said you can’t always do that… I think my name and the connection to how sensitive that is-- we go the extra mile to make sure that doesn’t happen,” says Hudson.
Made mistake of going2 Fabletics.What a pain in the ass.won’t even let u see anything Till u give them ur 1st born‼️Felt I Was Being Conned— Cher (@cher) July 18, 2016
The controversy, so far, hasn’t seemed to slow Fabletics’ momentum. In a business climate where more and more retailers are shutting their doors, Fabletics is actually opening traditional brick-and-mortar locations. In 2016 alone it opened up eighteen retail stores, and plans to break ground with twelve more this year.
“People want to go have the same experience that they do online and go in the store and touch and feel and still be able to have the same things they can get online in the store. We are finding that it’s working,” Hudson says.
Be sure to watch Kate Hudson’s full interview above, where she gives fellow women entrepreneurs her tips for success.