Amazon Has Some Stiff Competition in Kate Hudson’s Fabletics
There are not too many companies that try to succeed in the fashion niche only because Amazon is commanding a huge chunk of that e-commerce space. That being said, even though Amazon owns 20% of the active-wear market online, Kate Hudson’s Fabletics has made some serious gains in three years, surpassing over $250 million in sales in that short amount of time. If Hudson can keep Fabletics moving in that direction, she will perhaps give Amazon a real run for their money finally.
Asking Hudson what her company is doing different than all the other fashion e-commerce businesses that have failed over the years, she credits the success to reverse-showrooming and her unique membership structure. To see her business model in action, you only need go down to the mall to her retail stores and witness the difference in the shopping experience. Women who come into the store are encouraged to apply for a free membership and take the Lifestyle Quiz, but there is zero pressure to buy anything in the store. In fact, most women try on different pieces of active-wear but leave the store with nothing.
So how is Kate Hudson’s Fabletics making $250 million when women are leaving with nothing?
This is the key to the success of Kate Hudson’s Fabletics. All those items that were tried on in the store are then moved to the website in the shopping cart for consideration at a later time. The genius in this process is most women will window-shop when they are in a hurry, and now they come back online and night when they can relax and look around at all the other styles. Since consumers already know what size flatters their shape, they can shop around and get exactly what will fit them perfectly. This encourages women to buy this athleisure brand without any shopping pressure.
Of course, there are a few other things that make this brand such a hot ticket today. All of the Kate Hudson’s Fabletics apparel is high-quality and ships for free to members. Each member who tool the Lifestyle Quiz will have their own personal shopper who is going to pick one item each month for the customer to consider. Love the item, you buy it, hate the item, shop for something else without any pressure. This has literally changes the way that woman can shop for active-wear and workout apparel online.