Hasn't what seemed like a brilliant idea at the time and a $150 million dollar money making machine in a very short period of time, just come tumbling down.

Well, if you take what's written in the press today as any indicator, then you can certainly think that this may be a conclusion.
Is Kate Hudson a marketing whiz or a fraud?

Personally, I like Kate Hudson. She has this fun, approachable persona whether its for the camera's or not, that appeals - clearly to the masses. She isn't classically beautiful (her ears have always been a little bigger than the supermodels standing beside her), but even that makes her more endearing.

Unlike a bad headline to do with a relationship breakup, today's newspapers have a few that are more damaging and actually makes her less interesting to watch on the big screen because who likes a fraud (or at least that is what newspapers are calling her).

In today's Brisbane Times the headline is "Kate Hudson's Fabletics and ScootPrice under fire for dodgy membership model."

Consumers are being warned to not fall into "subscription traps" - where retailers treat a one-off purchase as permission to sign up shoppers as fee-paying members.

In our Atlanta office, a few young girls signed up and now not only hate the brand, and the person behind it, but feel very ripped off. They thought their one-off payment meant gym gear for an entire year. Clearly the fine print was clear enough.

The Australian Competition and Consumer Commision has received a flood of complaints.

From an Australian perspective, she is now being forced to revamp her website. While she may have made $150 million in the first instance out of this "clever" and somewhat dishonest way of marketing, I doubt her future business will be so lucrative.

Just lost me. If my staff are feeling ripped off, I feel their pain.




Mellissah Smith is a serial entrepreneur and business leader with more than 20 years' experience in marketing.
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Mellissah Smith

Mellissah Smith is a marketing expert, author, writer, public speaker and technology innovator. Having worked with more than 300 companies across technology, medical device, professional services, manufacturing, logistics, finance and health industries, Mellissah has a well-established reputation as an experienced marketing professional with more than 20 years experience. As the founder and managing director of Marketing Eye, she has taken the company from startup to a multi-million dollar enterprise with offices in Australia and the US. Mellissah is also the Editor in Chief of Marketing Eye Magazine, a quarterly magazine that cover marketing, entrepreneurship, travel, health and wellbeing. #mellissah #marketingeye

2 comments

  • valermth
    valermth
    07/02/17

    Exceptionally well written! +1

  • Ellen Bloor
    09/07/16

    Dear Melissah,

    This was an interesting read - I am similarly a fan of Kate Hudson's and it is a shame to see her brand's customers falling into these traps and feeling ripped off.

    I'm applying for the position you have available as Graphic Design Intern at your MarketingEye office in Melbourne. Would be grateful for the opportunity!

    Ellen

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