Companies have been using celebrities to endorse their products for decades. The reason they continue to do it is because it works. People like to buy products endorsed by celebrities they admire. Don Ressler has used this strategy beautifully to help Fabletics grow into the juggernaut it has become. One of the primary reasons that company has been able to get so big is the star power of Kate Hudson. She has done quite a few ads for the company and has become heavily associated with the Fabletics brand. This is one of the reasons that a $1 billion valuation was recently given to Techstyle at https://www.apparelnews.net/news/2016/sep/05/new-sizes-fab-justfab/. This is the company that controls Fabletics and a variety of other companies. Kate has said that one of the main reasons that she decided to associate herself with the company is her desire to make activewear more affordable.
Don Ressler founded the company with the same idea in mind. He saw that much of the activewear on huffingtonpost.com that was available online was overpriced and very low quality. He knew that he would be able to attract many customers if he could find a way to sell a variety of activewear at prices that were lower than the competition. Fabletics has been able to do this and it has gained millions of customers in the process. The business model is simple. Keep prices low and people will come. Many companies across a variety of industries have followed the same principles and achieved great success.
Read more: JustFab wants to be the next H&M
Fabletics was not the first successful startup for Don Ressler. He also created a winner when he came up with the idea for Dermstore on perezhilton.com. The idea for this startup came to Don when he was searching online for some cosmetics for his wife. He was amazed that there was such a poor selection of cosmetics. Much of what he found was too expensive. He also found the sites that sold these products to be horribly outdated. He knew that he could improve on all of the sites that were currently out there.
Dermstore became successful in Europe. Positive feedback started to spread across social media. Eventually, the site was a hit in the United States. Don Ressler gained serious clout in the startup community as a result of Dermstore’s success. He soon discovered that many venture capitalists wanted to know what he was going to be working on next. Getting financing was no longer a problem.