Amazon has not had to be worried about the competition in the clothing e-commerce market for many years. They currently dominate that space with 20 percent of the sales, and no other retailer has been able to come close in years. In the last three years however, Kate Hudson’s Fabletics has exploded on to the scene and taken in over $250 million is sales of high-quality active-wear and workout apparel for women. If Amazon was not worried in the past, they may want to take a closer look in the rear-view mirror.
Hudson discusses openly the success of her company, and it all comes down to her unique membership platform and her use of reverse showrooming. Hudson says her athleisure brand is made from high-quality materials that couture a women’s body and has a modern look they love. To see the sales process in action, we head to the Fabletics stores at the local mall, where women are spending time window-shopping, taking a Lifestyle Quiz, getting their free membership to the store, and trying on everything they like. The difference with this retail store is they don’t rely on sales like others, so they can allow women to shop in a relaxed atmosphere.
If women aren’t pressured to buy, how does Kate Hudson’s Fabletics make $250 in such short order?
The secret to the success of Hudson’s company happens when the customers leave the retail store. When these women have the time to sit down and relax, they wind up going to the Fabletics website, and all the items they were wearing at the store in the mall is conveniently placed in their online account. Since these women know exactly how the pieces fit, they are not going to have to worry about what they are buying anymore like at Amazon. These women will add those items they tried on into their cart, add similar items, and grab new arrivals based on the size they know already flatters their body.
It seems that Kate Hudson’s Fabletics has found the perfect balance between shopping convenience and popular styles. Women who have a membership and completed the quiz get lower piece pricing, free shipping on online orders, and the assistance of a Fabletics personal shopper who makes one selection a month for customers to consider. If Amazon is not paying attention to Kate Hudson’s Fabletics, they may not be in that top spot for active-wear sales for much longer.