When Don Ressler and his wife noticed that their wardrobe consisted of mainly overpriced workout clothes, they realized that there was a potential for growth in the market. Ressler and his business partner, Adam Goldenberg began setting the framework for what is now known as Fabletics.
Don Ressler is currently CEO of JustFab, an e-commerce website that sells quality clothes at affordable prices via an online membership. When he and Goldenberg, realized that there was a real potential for selling athletic wear, it seemed like a natural evolution of the company.
Fabletics now brings in $150 million in annual sales for its parent company JustFab and their market share is still growing. Their secret is that since they are an e-commerce website, they don’t have to deal with the traditional costs of owning a physical store. This allows the company to offer high quality products and lower prices than their competitors.
The company has even partnered up with Kate Hudson to help increase their brand recognition and compete with industry heavy weights such as Lululemon and Nike, at less than half of the cost. Don Ressler even went so far to say that they “would put [their] pants next to Lululemon or Athleta any day”.
The brand has led to the development of new business ventures, such as FL2, an athletic brand geared towards men. The industry as a whole is set to grow to more than $100 billion by 2020, and JustFab has a unique position as an e-commerce site which will give it an edge over struggling brick-and-mortar retailers.
Consumers too seem to be getting more comfortable with shopping online, and physical businesses such as Sport’s Authority haven’t been able to adapt quickly enough to this trend. JustFab was founded in 2010 by Don Ressler and Adam Goldenberg, was designed to specifically to take advantage of this trend and has grown to bring in a total of $500 million in annual sales. The company is still receiving investment funding and now holds the coveted title of a billion dollar “Unicorn” start-up.