There are not too many companies out their today that can really make Amazon concerned. In fact, if you look at the online apparel market, Amazon sits comfortably at the top with over 20 percent of the total sales each year. With thousands of competitors trying to climb over each other just to get a share of the scraps left behind by Amazon, it appears one company has in fact found a winning formula and is breaking free from the group with their eyes on Amazon.
Kate Hudson’s Fabletics has gotten so big so fast, that they have already sold $250 million in the online apparel niche in 36 months, and things only appear to be heating up.
When Hudson was questioned about what is the winning formula that allowed her company to separate themselves from the pack and ride right on the heels of Amazon, her answer was her membership perks and the reverse showrooming sales practice. To see these two techniques in action, you don’t need to look at numbers or take to the company accountant, just drive to the local mall and walk inside the Fabletics retail shop. This where you see countless women applying for their free membership, trying on all the new arrivals, window-shopping, and even taking the company Lifestyle Quiz. Since Hudson says there is no pressure to buy, many leave the store empty-handed.
With customers encouraged to browse and no pressure to buy, how did Kate Hudson’s Fabletics do $250 million in sales?
Part of the appeal of this athleisure brand is the way you shop, not just the high quality of the merchandise. Women are encouraged to try on the apparel in the mall stores because Hudson knows they will eventually return to shop online when they don’t have to be in such a hurry or when they are done doing all those stressful things that make up their days. Now that they are members, every piece of apparel that was tried-on at the store is uploaded to the customer’s account profile cart.
Unlike the experience at Amazon where you browse online and hope things fit or you return them, once you shop at the Fabletics online site, you know those items fit your body perfectly.
So the real secret to the success of Kate Hudson’s Fabletics is a combination of convenience, pricing, free shipping, and high-quality merchandise. Since shoppers took that Lifestyle Quiz, they now have their own personal shopping assistant who will pick an item each month and drop in the shopping cart for their consideration too.