Amazon has not been worried about too much as they sit perched in the top spot in the apparel market. Over the last few years, Amazon has been taking in over 20 percent of the sales in this niche, and has widened the gap to the nearest competitor. There appears to be one clothing retailer who is not afraid to rattle Amazon’s cage, and Kate Hudson’s Fabletics has pulled in over $250 million in sales in this space over three years to put the pressure on the rest of the market.
Hudson talks openly about how her company has exploded in popularity and sales, and it all comes down to a few basics like membership perks and a sales technique known as reverse-showrooming. To get a better understanding as to how this works, we only need to take a peek in the mall at the retail Fabletics stores first. Here you will find women trying on the active-wear, window-shopping for the latest in workout apparel, and even enhancing their memberships by talking the Fablectics lifestyle quiz. Hudson says although her athleisure brand is high-quality, it is a combination of all these moving parts that adds to the success of the brand.
Now we need to take a look at what happens when customers visit the Fabletics e-commerce stores online. If a customer has a membership and has been trying on the workout apparel at the mall, all those items that fit perfectly get moved to the online profile for future consideration. So maybe a customer was too busy in the mall but had time to try on a few things to make sure they fit. Now when they have more time, they log into the e-commerce site and they can shop the vast assortment of active-wear online without concern of items fitting or the stress of being in the mall. These women tend to buy more because they know exactly how they look in those yoga pants or tank tops.
Kate Hudson’s Fabletics also rewards their loyal customers with free shipping for those online orders, discounted prices for the workout apparel, and the help of a Fabletics personal shopper who uses those quiz answers to pick an item each month they think you will love, then adds it to the car for consideration. Unlike eBay or Amazon where everyone gets the same treatment, at Kate Hudson’s Fabletics you are a valued part of the family and you are rewarded as such.